Govt diverts Shs300bn for ambulances into saving Roko

NATIONAL | The government diverted Shs300 billion budgeted for purchase of ambulance to boost the ailing health sector's medical emergency into savings Roko Construction Company from liquidation.

The revelations, brought to the public by former chairperson of the Health Committee of Parliament, Dr Charles Ayume, is one for the ages.

And indeed the Koboko Municipality MP, who posted his bemusement on X, formerly Twitter, described it as "mind-boggling".

“The omnibus decision to reverse the Shs750 billion budgetary allocation across all sectors also affected the procurement of 80 ambulances for Ministry of Health and to me this is mind-boggling," he posted on Tuesday evening.

"I need to put my head in a bucket of ice tonight.”

The public lost a chance to procure a few dozen ambulances to boost the health service delivery after President Museveni took issues with allocations and returned the Appropriation Bill, 2024, with demands that the Shs750 billion be placed back where he wanted it.

Mr Museveni accused the legislators of sabotaging government programmes by consistently taking away Budget Allocations over the last four years.

But like the roads that Mr Museveni said is being sabotaged, the health sector equally needs more funding with the medical emergency capacity wanting.

An ambulance census conducted in 2019 by the Health ministry said Uganda required 460 ambulances to support its healthcare system.o

At the time, the country only had 178 public ambulances and 172 in the private sector.

The majority of the lot in the private sector are procured by politicians who have the habit of taking it away if they lost an election.

Taking away monies that would boost health emergency services looks strange for a country that is only planning to spend Shs2.9 trillion on the health sector.

But the Minister of State for Finance, Henry Musasizi, clarified that not all the Shs300 billion meant for the procurement of ambulances was channeled into bailing out Roko Construction Company from its financial distress.

The minister said part of the funds would go to Bank of Uganda for management of accounts of all government entities and pay the Shs72 trillion National Budget.

Mr Musasizi said the money for Roko was earlier approved by Parliament.

 

Interesting debate by both sides of the house today. But the omnibus decision to reverse the 750bn budgetary allocation across all sectors also affected the procurement of 80 ambulances for MOH and to me this is mind boggling. In need to put my head in a bucket of ice tonight.

— Dr. Ayume Charles (@DrAyumeCharles) July 2, 2024

“The Shs300 billion is for obligations the Parliament already approved in the past," he said. "Roko preference shares is just one of them."

In July 2022, Parliament approved the proposed government purchase of 150,000 preference shares in Roko Construction worth Shs202 billion.

The controversial approval angered a section of MPs especially because Deputy Speaker Thomas Tayebwa told MPs that he had received communication from the Executive that if the government proposal was not approved, Roko would cease operations.

Tayebwa hastily ran the show on the day, declaring that the 'Ayes' had taken the day amidst commotion on the floor with some MPs raising the issue of lack of quorum while others insisted they had not taken a vote.

The Tayebwa show came just a day after his boss Anita Among had stayed approval of the purchase of shares in Roko.

Last week, legislators on the Committee on Commissions, Statutory Authorities and State Enterprises tasked the finance ministry to present documentation on the criteria used in granting bailouts to companies in financial crises.

According to the committee chairperson, Medard Sseggona, companies belonging to foreign investors have mostly benefitted from bailouts compared to companies belonging to Ugandan investors.

“What is the legal and policy framework on which you base to determine who should benefit from your bailouts and who should not? You are helping AYA but you are not helping Sembule who has invested in development of your technology and skills,” said Sseggona.

He raised the concern in a meeting between committee members and officials from the ministry on Friday, 28 June 2024.

The delegation appearing before the committee was led by Finance minister Matia Kasaija.

Sseggona also tasked the minister to present a schedule of all companies in which government has bought shares, and appraise the committee with details by Friday, July 6.

“We want to know what we have injected, what the worth of our investment is in terms of shareholding, and our level of participation in managing these companies. We must be able to reap back our money,” Sseggona added.

But after Mr Museveni barked and Parliament folded it's tail between its legs, it appears that the Finance ministry is already off the hook.

Minister Musasizi said in his break down of the Shs300 billion taken from medical emergency shelves that Roko is only taking Shs56.2 billion.