Moyo district to return UGX 3.1 billion to treasury

todayMay 23, 2023

By Inyakuni Kennedy


Moyo district local government is to return to the national treasury over three billion shillings after the district failed to absorb the funds which were planned under the financial year 2022/2023. On 8th May 2023, the district received a circular of disbursement of funds of UGX 3.168 Billion for recurrent expenditure and development projects to be used before the end of this financial year.

According to circular sent by ministry of finance, of the UGX 3.1 Billion, UGX 1.965 billion is for recurrent expenditure while UGX 1.203 is for development projects. The money is meant for construction of Gbari health center II in Otce Sub County and construction of the main market in Moyo town council. The district has less than forty days to absorb the money if it’s not to return to the treasury. 

However, Mr. Asusi JB Sam, the secretary for finance and administration Moyo said the district executive committee (DEC) had convened an emergency meeting to approve money for Salaries on behalf of the council since the district does not have funds to conduct extraordinary council meeting.

Asusi noted late procurement as a greatest challenge in the implementation of work plan and budget in the local government. “We must acknowledge this for the case of Moyo. For instance if we have construction projects, and normal constructions take not less than four months, assuming you procure a project in May how will the project get finished in time,” he argued.

Mr. Asus JB Sam, moyo district seceretary of finance and administartion

He blamed central government for late release of funds. “My understanding is if the monies are released late, the service providers will not work as expected due to lack of money or late release of money. As I speak, last year the district returned to the central treasury over UGX 1 billion because of late release of funds.  The district was assured that money will be sent back by August 2022, the district account was never credited as stated by the ministry”, he remarked.
“On the 8th of May 2023, we received a circular  from ministry of finance indicating that the district account has been credited by over UGX 3 billion, we are hardly left with one and half month to end the financial year, what miracle is Moyo district going do to consume this three billion shillings within this period? It’s not practical, that means monies have to go,” Asusi said.

According to the leaders, some of reforms been introduced by government are hampering effective and efficient service delivery to the local population citing online transactions which is being affected by the operating systems and the delayed time by the responsible persons in the ministries to approve funds for  implementation of work plans.

Mr. William Anyama, the chairperson Moyo district equally blamed the return of money to central treasury on late release of funds by the central to district local governments. He said once funds are taken back to the center, they are not re-disbursed in time to the districts to implement planned activities. Anyama has assured the people of Moyo that not all the three billion shillings to be sent to the center. “We have approved money for paying salaries except for development projects, we are going to do all what we can, to use the funds,” the district chair said.

It’s not the first time monies are returned to the central treasury. For several times Moyo district has returned money even during the times of Mr. Onama Gerry, Mr. Peter Iku Dollo, Mr. Jimmy Vukoni Okudi and the current LC 5 chairperson Mr. William Anyama.
Moyo District Local Government had approved UGX.35, 503,573,000 in the FY 2022-2023.

COVER PHOTO: Moyo District Local government administrtaion office By Inyakuni Kennedy

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