The management of the Uganda National Roads Authority(UNRA) has interfaced with Parliament's Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) over queries highlighted in the Auditor General's report for June 2020/21 .
The committee probed over an unauthorised project reallocation of funds totaling shs124.4 billion as highlighted in the report.
On Wednesday, UNRA management led by Allen Kagina explained that after exhausting the available 10% limit as per the Finance and Management Act, UNRA found itself in a situation where it remained with funds on slow moving projects and yet fast moving projects, like those with already acquired right of way, had exhausted their allocated funds during that period.
Kagina explained that towards end of the financial year, UNRA was going to have a huge debt which she said would have attracted interest as a result of delayed payment to contractors.
As a result, she said shs124.4 billion was reallocated after numerous engagements with the UNRA Board and the Permanent Secretary in the Ministry of Finance.
"This was therefore done to save government of Uganda and taxpayers from incurring extra cost and burden of interest to a tune of shs22 billion annually or shs61 million daily,"Kagina told the MPs on the committee.
The legislators however observed that this was not supported within the laws, a flaw that UNRA management admitted but insisted it was done in the best interest of the country and saving huge sums of money for government.
In relation to employee costs, UNRA management pointed out that due to a temporary freeze on recruitment, and due to the ongoing rationalisation program, shs4.6 billion couldn't be absorbed under employee related costs and funds were thus diverted to pay pending invoices on road works, again to save government from further costs.
The MPs also pointed out that this was not acceptable and that UNRA committed a sin.
They requested management to submit further accountability to ensure that the allocated monies were put to right use.
The committee will tomorrow, Thursday continue with the interface with UNRA management over queries in the Auditor General's report.
