NINE WEST NILE LOCAL GOVERNMENTS LOSE UGX1.1B AFTER RETURN OF FUNDS

Local leaders from West Nile Sub region interface with officials from Ministry of Finance, Public service and Ethics and Integrity at Le-confidentiel Hotel in Arua.

By Dramadri Federick

Arua City

West Nile local governments have returned UGX14.118 billion in development grants, costing penalties for nine local governments following their performance in the 2025 National Local Government Management of Service Delivery Performance Assessment by the Office of the Prime Minister.

The assessment, released to leaders on Tuesday this week during a budget consultative meeting, shows that a combined UGX1.1 billion was deducted from the 2026/2027 financial year development grant allocations of the nine local governments that returned funds and performed poorly in the assessment.

According to OPM, Terego District recorded the largest reduction at 321.9 million shillings, followed by Adjumani District at 286 million, Yumbe District at 152.2 million, and Maracha District at 87.5 million shillings.

Madi-Okollo District lost 76.4 million shillings, Moyo District 70 million, Nebbi Municipal Council 52.7 million, Koboko Municipal Council 42.7 million, while Obongi District recorded the smallest reduction at 18.3 million shillings.

Nicholas Ogwang, the District Chief Administrative Officer for Koboko, says most districts face additional challenges, including inadequate staffing, apart from infrastructural glitches affecting the utilization of funds.

“Government has introduced several systems but there’s no internet to run them including the IRAS, IFMIS, the human capital management system and other financial management system, yet there’re also limited personnel to run them,” Ogwang stated.

Zombo Resident District Commissioner Festus Ayikobua blames the central government for the poor utilization of funds, saying delays in the release of funds impede works across local governments.

“It is from today that we have realized that moneys send to local governments are mostly taken back, can the Ministry now begin to release early so that the local governments can plan better and deliver services in an equitable manner,” Ayikobua noted.

Hassan Kaps Fungaroo, the Obongi Constituency Member of Parliament, has cautioned ministry officials against delay tactics that affect service delivery to the people.

“Most times when a project is put on the national priority list, you find quite often the project is not implemented and when we ask, the local government leaders tell us that the money is released late”.

Moses Ssonko, Principal Economist at the Ministry of Finance, Planning and Economic Development, says failure to absorb funds has adverse effects on service delivery and shows lack of competence in district leadership.

The annual assessment results are used in determining allocations of development grants in sectors including education, health, water, irrigation and the Discretionary Development Equalisation Grant, as well as in planning performance improvements.

Written by newsroom-radiopacis