The Public Accounts Committee (PAC) of Parliament has raised concerns over the disbursement of Shs120bn under the World Bank's Generating Growth, Opportunities, and Productivity for Women Enterprises (GROW) project.
The target for the first year was to reach at least 4,000 borrowers, with Shs50bn disbursed to just 2,175 beneficiaries, falling short of expectations.
During a session with various stakeholders from the Ministry of Finance, who are responsible for implementing World Bank projects, PAC members scrutinized the Auditor General's Report for the year ending June 30, 2024.
Chairperson Muwanga Kivumbi pointed out that, despite having a budget of Shs75.1bn for the 2023/24 financial year, only Shs18bn had been spent, leaving an unspent balance of Shs56.6bn, which represents an absorption rate of just 23%.
"You had a budget of Shs.75.1bn in 2023/24, but you spent only Shs.18bn, leaving unspent balances of Shs56.6bn, representing an absorption level of only 23%," Muwanga said.
"So, they are falling short on disbursement. Even where money has been disbursed, their capacity to spend is at just 23%. They can’t absorb the loan from the World Bank."
The committee also questioned Dr Ruth Aisha Kasolo, the GROW project coordinator, about the disbursement of the Shs120bn.
Joseph Ssewungu, MP for Kalungu West, revealed that most of the funds in Masaka had been wasted on trainings and workshops, and that women in Kalungu district had not yet benefited from the project.
"I have information that most of this money in Masaka was wasted on trainings and workshops, and my women in Kalungu district have not benefited from the GROW project," disclosed Ssewungu.
Committee members also raised concerns over the criteria for selecting beneficiaries, with some districts and women’s groups reportedly missing out.
Susan Amero, the Woman MP for Amuria District, questioned the allocation process, noting that money appeared to be concentrated in certain areas.
"I am surprised when Dr Kasolo says it was because some training was going on. From the onset, how many districts have received this money?" Amero queried.
"It looks like this money has been kept in the centre. As I speak now, this money seems to go to those who have connections.
"When you visit districts in Northern Uganda, you will find a lot of money being spent in Lira City. We want to see this money going to the people it is meant for. Where is this money?"
In response, Ms Kasolo explained that the project had faced challenges during its initial stages but had managed to disburse Shs50.1 billion to women in various districts, including Kampala, Mbarara, Jinja, Luwero, Masaka, Mukono, and Gulu.
“We acknowledge the concern of the auditors, but the under-disbursement was because the project was in its initial stages," she said.
"All activities commenced this financial year, and we are now working on the designs, especially for the loans. Looking at this financial year, we have already started actualizing these disbursements."
In the same meeting, the committee also engaged with John Kyewalabye, the project director, who discussed the challenges of delayed implementation of investments for industrial transformation and employment.