The Public Accounts Committee (PAC) of Parliament on Local Government has uncovered a significant discrepancy in the financial records of Ibanda Municipal Council, where Shs3.1 billion in supplementary expenditure remains unaccounted for.
The revelation came on Tuesday during a committee session held in Mbarara, where officials from 26 districts across western Uganda, including Rubirizi, Isingiro, and Mbarara, were summoned to explain financial anomalies flagged in the Auditor General’s report for the 2024/2025 financial year.
Committee chairperson Gilbert Olanya disclosed that although Ibanda Municipal Council requested Shs1.2 billion in supplementary funding, it received Shs4.2 billion—more than triple the requested amount—without providing a clear explanation or documentation for the additional Shs3.1 billion.
“We see that you requested for Shs1.2 billion but you were given Shs 4.2 billion, with an extra of Shs 3.1 billion. Did you receive the money?” Oulanyah queried the municipal officials.
In response, the municipality’s Principal Finance Officer acknowledged receipt of the full amount but struggled to justify how the excess was utilised.
“It’s true we requested for less than we were given, but during our implementation, we utilised the money for the activities,” the official said, without providing supporting documentation.
As the officials failed to present records to account for the surplus funds, the committee handed the matter over to the Criminal Investigations Directorate (CID) for deeper inquiry.
“Government can’t miss Shs3.1 billion on something we don’t understand, so our CID has to take on this matter and make sure the investigation is done further and properly,” said Olanya.
This is not the first time Ibanda Municipal Council has come under scrutiny.
In November last year, four municipal officials were arrested by the State House Anti-Corruption Unit over the alleged embezzlement of more than Shs558 million from local service tax collections.
PAC now awaits the outcome of the CID probe, with Parliament pushing for both accountability and the recovery of the missing public funds.