PARLIAMENT OF UGANDA
R-EPORT OF THE BUDGET COMMITTEE OIY THE SUPPLEMENTARY EXPENDITURE SCHEDULE NO.l AND SHEDULE NO. 2 FOR FY 2O18l19
Office of the Clerk
May 20 19
U ( 1.O INTRODUCTION
Rt. Hon. Speaker and Members, on 6'h March2019, Government laid before
Parliament supplementary expenditure estimates under Schedule No. 1 amounting Shs 462.84 billionand anaddendum to Supplementary Schedule 1 amounting to Shs 3.547 billion. This brought the total Supplementary Expenditure under Schedule 1 to Shs 466.388 billlonwhich is 1.4% of the approved budget (Shs 32,7O2.A billion) for the FY 2018/ 19.
Furthermore, on 20ft February 2OI9, the Hon. Minister of Finance, Planning and Economic Development Iaid before the House Supplementary Expenditure estimates under Schedule No. 2 amounting to Shs 1,1?3.816 billton(which is 3.60lo of the approved budget). Shs 4()3.526 bllllon under schedule 2 has already been authorized as expenditure within the B% legal provision while Shs770.239 billton requires prior parliamentary approval before expenditure can be authorized.
In addition, the Hon. Minister of Finance, Planning and Economic Development further laid an addendum to Schedule 2 for the Fy 201g/19 of Shs 45, 627, 556, L25
Tables A and B below show a summary of the Supplementary Expenditure for FY2018/19 and the Sources of financing the Supplementary Expenditures respectively:
Table A: Summary of Supplementary Expendlture by Schedule and Source Schedule 1 Schedule 2 Addendum Pendlng (1) Prlor Approval Authorlsed Authorised by Addendum Source by MFPED by MFPED Parllamcnt ( 1-31 Total 3.547 Recurrent 20t.677 249.r4A 44.90 t9 .7 A5 519.06 Development 261.L64 154.424 725.339 25.842 t,166.77
Total 462.44 3.547 403.576 770.239 45.627 1,685.83 Source: MFPED& PBO Computatloos
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2 Table B: Details of Sourcea of Firanclng the Supplementary Expenditur€ Schedule 1 and 2 Sourcc Amount lBnl Govertrment of Usanda lcoul 1,537.27 o/w Additional Funding from URA Tax Revenue 601 .33 o/w Proceeds from Telecomlicense and Capital Gains Tax 2ao.o46 o/w Suppression of Releases 27 5_49 o/w Domestic Borrowing for MoD 380.00 Additionel fundlng from Appropriatlon ln Ald 40.13 Addittonal External Finencing 1()8.435 TOTAL 1,685,83 Source: MFPED& PBO Computatlons
Rt. Hon. Speaker, the House will be reminded that owing to some expenditure pressure from Government Parliament considered and approved as a special caseShs zaO,o'46,776t933 development expenditure under Vote 016 Ministry of Works and Transport for procurement of aircrafts under Uganda National Airline Company Ltd and Shs 12,OOO,OOO,OOO ground rent arrears to Kampala Archdiocese under Vote 156 Uganda Land Commission. This would have the effect of reducing the funds now required for prior approval to Shs 478.192 billton.
Rt. Hon Speaker, the Budget Committee now wishes to present the Committee Report to the Augu.st House in three parts as follows:
1. Part A: Presents the Methodolory, Legal Framework, Status of Compliance and Preliminary Observations
2. Pett B: Presents the proposed Supplementary Estimates under Schedule No I for the FY 2Ol8/79; Observations and Recommendations 3. Part C: Presents the proposed Supplementary Estimates under Schedule No 2 for the FY 2Ol8/19; Observations and Recommendations
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3 PART A
2.O METHODOLOGY
The Committee scrutinized the Supplementary Schedules and held meetings with the following MDAs in the effort to obtain additional information and justilication for the expenditure: 1. Ministry of Finance, Planning and Economic Development; 2. State House; 3. Office of the President; 4. Ministry of Lands and Urban Development; 5. The Minister of Water and Environment; 6. Ministry of Health; 7. Ministry of Ener$7 and Mineral Development; 8, NAADS; 9. Ministry of Agriculture, Animal Industry and Fisheries; 10. Ministry of Gender, Labour and Social Development; 1 1. KCCA
3.O LEGAL FRAMEWORI(
Hon. Members, Article 156 (2) of the Constitution of the Republic of Uganda states that "If ln respect oJ ang flnancld.l gear lt ls found. thdt the dmount approprlated for dng purpose under the Approprla:tlon Act is lnsulficient or that a need ho,s arlsen for etcpendlture Jor a purpose for uhich no amourtt ha.s been d.pproprldted bg thdt Act; or that ang monies haue been expended for ang purpose tn excess o.f the amount appropriated for that purlrose or for a purpose for whlch no dmount has been approprlated bg thdt Act, a supplementa,ry estlmr:te shoulng the sfltms required. or spent shall be lald doun before Pafllament, withln four moraths dtaer the moneg ls spent."r
The above article is operationalised under Section 25 of the Public Finance Management Act, 2015 which provides as follows;
(7) That the total stpplementdry expendlture that requlres addltlonal resources oaer and, aboae uhat ls approued bg Parliament shall not exceed. 3%o of E tota.l approaed budget for thdt findflcldl gedr, wlthout approual of Parllament.
(21 Where Junds are expend.ed under subsectlon (1), atppletnentary estimdtes shoulng the sums spent shall be latd before Parllament wlthln tnonths afier the money ls spent.z four u{a l4rticle 156 (2) of the Constitution of the Republic of Uganda 2section 25 ofthe Public Finance Management Act, 2015
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a (c Furthermore, Regulation 18(5), (6) and (7) of the Public Finance Management Regulations 2016 provide as follows:
(5) "Parliament mag approae a supplementdry appropriation or tlle Mlralster mdg approue a supplementary budget, ds the cdse mag be, where the supplementdry expendidffe ls unaaoiddble or unJoreseeable.'
(6) For the purposes of thls Reguldtion;
(a) ?"unauoidableu means dn expend.ittre that ca/r7.ot be postponed to the next ftnanclal gear thtough ttlrement;,
(bl (u4foreseeable" does not tnclude dn expendlture that wd.s loreseeable bg the aote dt the time ol ptepdrdtlon of the budget oI the aote or an expendlture that should haae been iacluded 7n the budget of the oote
(4 Ang expendlture, whlch is ln excess of the dpproprlated budget of rote and uhich ls not ln accordance ulth thls section shall be treated as loss of publlc funds as prould.ed Jor und.er sectlon 79 (7) of the Act,s
4,O PRELIMINARY COMMIT.TEE OBSERVATIONS
1. The Committee observed that the Supplementary Expenditure Schedules were laid in accordance with Section 25 of the PFMA 2015. The dates of the submissions were within the four months' timelines.
2, The Committee noted that the total Budget for Financial Year 201-8119 is Shs 32,702.815 Btllton of which Shs. 22,535.301 Billion was appropriated by Parliament while Shs. 10,167.513 Billion was approved as statutory expenditure. The Budget has witnessed significant growth in volume over the years thus providing more fiscal space for supplementary expenditure.
3. The committee is concerned about the growing number and frequency of supplementary requests as evidenced above. This worsening trend undermines the credibility of annual planning and budgeting as entities appear to be avoiding detailed scrutiny during the normal budget process in favor of supplementary budgeting whose expenditure can be allowed to take effec L prior to the approval of parliament. Most of this expenditure should have been foreseen and is too big to have been missed during normal budgeting.
rRegulation l8 of the Public Finance Managemenr Regulations 20 l6
5 For instance; a request of UGX2SObn for buying aircrafts or a request of UGX 380bn for defence spending could not have been an afterthought. These uncontrolled supplementary requests cause major distortions on the budget.
4. The committee notes that using the Single Treasury Account, the Ministry of Finance sometimes arbitrarily suppresses budgets of MDAs without securing any reallocation approvals from the affected accounting officers. This seriously undermines the role of Parliament as the authority respoosible for appropriating resources and should not go unchecked by the House.
The Committe€ shall, subject to artlcle 156 of the Constltution and section 25 of the PFMA, develop a checkllst to gutde the Mlnlstry of Finance, Planning and Economlc Development and MDAs on the consideratlon and approval of supplementary expendlture requests by the Commlttee.
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6 PART B
S.OSUPPLEMENTARY EXPENDITURE ESTIMATES UNDER SoHEDULE 1 FY 2018/ 19
The Committee notes that the supplementary expenditure under the Schedule No. I for the FY 2018/19 amounts to Shs 466.388 billion out of which Shs 205.224 billion is recurrent expenditure while Shs 267.16+ billion is development expenditure(See Appendix 1 for details).
5.1 JUSTIFICATION OF SUPPLEMENTARY EXPENDITURE REQUESTS BY VOTE
A} RECURRENT EXPENDITURE
L Vote OO1- Office of the Presldent The Ofhce of the President requested for additional funding of Shs 84.805 billion to cater for facilitation of the Land Inquiry Commission, domestic arrears and classified expenditure under Internal Securit5rOrganisation.
The Committee upon scrutiny of the detailed supplementary schedules from the MoFPED, noted the following; a) Out of the 84.805 billion, 73.105 billion was allocated for classified expenditure; b) 6 billion for l,and Commission of Inquiry; and c) 5.7 billion was for compensation to National Housing and Construction Company for the land strategically occupied by State House in Entebbe.
U. Vote OO2 State House An additional Shs 79,105,114,512 was provided to cater for unforeseen expenses under classified expenditure.
III. Vote OO3 Ofllce of the Prime Minister Additional Shs 467,156,000 was provided to meet expenses related to resolving Apaa Land conflicts in Northern Uganda.
IV, Vote 006 Ministry of Forelgn Affalre Additional Shs 1,000,000,000 was provided to cater for the facilitation for hosting the 9frHigh Level meeting of the Regional Oversight Mechanism meeting.
7 >\ V. Vote OO8 Ministry of Finance, Planning anil Ecoromic development Shs 1,380,000,000 was released to cater for rent and furnishing of the Afri- Exim Bank Offices in Kampala following Government commitment to host the Bank.
VL Minlstry of Internal Affairs An additional 2 billion was released to cater for classified expenditure for the operation of the Anti-Terrorism Task Force. This funding was availed to avert terrorism-
VIL Vote 015 Mlnlstry of Trade, Industry and Cooperatlves An additional Shs 5,000,000,000 was provided for the Bugisu Cooperative Union to cater for compensation following an Audit by Internal Auditor General-
Vote O23 - Ministry ofSclence, Technology and Innovations: An additional Shs 3.547 billion was provided to cater for Presidential Initiative on Banana Industrial Development (PIBID) operations in preparation of the next phase of commercialization.
VIIL Vote 119 Uganda Reglstration Service Bureau (URSBI An additional Shs 385,000,000 was released to the URSB to cater for recurrent expenses of online security registry system. The online security is critical for easing registration and tracking all movable property.
D(. Vote 132 Educetlon Senrice Commisslon An additional Shs 1,200,000,000 was released to cater for recruitment of 3,000 secondary school teachers.
X. Vote 141 Uganda Revenue Authority (URA| Shs 17,356,870,159 was released to the URA to cater for the procurement of Electronic Fiscal Device.
XI. Yote 2O2 Mission in England Shs 606,178,152 was requested by the mission to cater for the budget shortfall.
. Vote 2O3 Mission in Canada Shs 241,625,000 v/as requested by the mission to cater for the budget shortfall.
XIU, Vote 2O4 Mlsslon in India Shs 394,000,000 was requested by the mission to cater for the budget shortfall
XtV. Vot€ 2OS Misslon in Egypt Shs 270,800,000 was requested by the misslon to cater for the budget shortfall.
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,/l XV. Vote 206 Mlsslon in Kenya Shs 204,200,000 was requested by the mission to cater for the budget shortfall.
XVI. Vote 2O7 Mlsslon ln Tanzanla Shs 582,000,000 was requested by the mission to cater for the budget shortfall.
XVII. Vote 2O9 Mission in South Afrlca Shs 524,615,000 was requested by the mission to cater for the budget shortfall
)(VIIL Vote 2lO Mlssion in Washlngton Shs 504,548,O00 was requested by the mission to cater for the budget shortfall
XIX. Vote 211 Misslon ln Ethlopia Shs 87,851,300 was requested by the mission to cater for the budget shortfall
XX, Vote 213 Mission ln Rwanda Shs 376,976,671 was requested by the mission to cater for the budget shortfall
XXI. Vote 214 Mission in Geneva Shs 392,438,812 was requested by the mission to cater for the budget shortfall
XXII. Yote 217 Mission ia Saudl Arabia Shs 655,681,292 was requested by the mission to cater for the budget shortfall
XXIII. Vote 218 Mlsslon ln Denmark Shs 897,373,4O0 was requested by the mission to cater for the budget shortfall
XXw. Vote 219 Misslon in Belgium Shs 782,765,636 was requested by the mission to cater for the budget shortfall
XXV, Vote 22L Mlsslon ln DR Congo Shs 363,591,623 was requested by the mission to cater for the budget shortfall
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XXVII. Yote 224 Mission in France Shs 683,920,000 was requested by the mission to cater for the budget shortfall
,OMII. Vote 225 Mission ln Germany Shs 499,481,000 was requested by the mission to cater for the budget shortfall
XXU(. Vote 226 Mission in Iran Shs 498,861,240 was requested by the mission to cater for the budget shortfall
xxx. Yote 227 Mission ln Russla Shs 569,121,000 was requested by the mission to cater for the budget shortfall
)OO(I. Vote 228 Mlssion in Canberra Shs 574,874,013 was requested by the mission to cater for the budget shortfall
XXrilI. Vote 23O Mlssion lu Abu Dhabi Shs 190,000,000 was requested by the mission to cater for the budget shortfall
X)O II. Vote 231 Mission ia Bujumbura Shs 388,920,00O was requested by the mission to cater for the budget shortfall
. Vote 233Mission ln Ankara Shs 481,319,700 was requested by the mission to cater for the budget shortfall
Yote 234 Mission in Somalia Shs 400,000,00O was requested by the mission to cater for the budget shortfall
XrOfl/I. Vote 235 Mission ln Malaysla Shs 331,106,80O was requested by the mission to cater for the budget shortfall
:O()rVIL Vote 236 Consulate ln Mombasa Shs 476,934,490 was requested by the mission to cater for the budget shortfall
10 )OA(VIIL Vote 237 Uganda Embassy ln Algeria Shs 720,048,248 was requested by the mission to cater for the budget shortfall
XIO X. Vote 311 Uganda National Oil Company Shs 14.720,000,000 was requested by the Company to cater for the budget shortfall to allow the company execute its mandate. This includes cost of additional recruitment and staff costs, joint venture activities abroad to enable project reviews, benchmarking, negotiations, skill transfer and capacity building as well as purchase of software for Data Management of Upstream operations and ICT costs.
XL. Vote 312 Petroleum Authority of Uganda Shs 16.706,358,883 was requested by the Authority to cater for the budget shortfall regarding recruitment and capacity building for staff, regulation and monitoring of major projects regarding exploration and storage of petroleum
XLI. Vote 5O1 AdJumani Dlstrlct Shs 150,000,000 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
XLII. Vote 512 Kabale Dlstrict Shs 144,384,000 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
XLIII. Vote 513 Kabarole Dlstrlct Shs 128,000,000 was requested to cater for additional revenue due to under projection during budgeting and non- submission at the time of appropriationby Parliament.
XLIV. Vote 534 Masindi Dlstrict Shs 1,122,332,063 was requested to cater for additional revenue due to nder projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
XLV. Vote 539 Moyo District Shs 112,332,450 was requested to cater for additional revenue due to under projection of Appropdation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
XL\IL Vote 545 Ntungamo Dlstrlct Shs 812,270,895 was requested to cater for ad nal revenue due to under projection of Appropriation in Aid durin bu non- submission at the time of appropriation by Padiament. ++a
L- -z't XLVII. Vote 553 Sorotl District Shs 55,758,000 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament. xLvI . vote 555 Waklso Dlstrict Shs 11,935,198,180 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
XLIX, Vote 560 Isingiro Dlstrlct Shs 617,171,028 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
L. Vote 6O6 l{woya District Shs 806,250,966 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
Ll. Vote 618 Pakwach Dlstrlct Shs 200,000,OOO was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
LII. Vote 621 Kyotera District Shs 7a6,297,2O0 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
LUI. Vote 525 Kasanda District Shs 12,857,431 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time appropriation by Parliament.
LIV. Vote 751 Arua Municipal Council Shs 3,220,824,96O was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
LV. Vot€ 753 Fort-Portal Municipal Council Shs 728,000,000 was requested to cater for additional revenue due to under projection of Appropriation in Aid durin g budgeting d non- submission the time of appropriation by Parliament. @ LVI. Vote 754 Gulu Munlcipal Couneil Shs 4,849,829,100 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Pa iament.
LVU. Vote 755 Jinja Municipal Councll Shs 1,327,656,123 was requested to cater for additional revenue due to under projection dudng budgeting and non- submission at the time of appropriation by Parliament.
LVIII. Vote 759 Masaka Munlcipal Councll Shs 1,965,281,700 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
LIX. Vot€ 760 Mbale Municlpal Councll Shs 125,000,000 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time appropriation by Parliament.
LX, Vote 761 Mbarara Munlcipal Councll Shs 2,495,585,453 was requested to cater for additionai revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
LXL Vote 777 Bushenyi - Ishaka Munlcipal Council Shs 50,6O3,000 was requested to cater revenue , for additional due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
LXII. Vote 781 Klra Munlclpal Council hs 1,544,138,000 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- submission at the time of appropriation by Parliament.
LXIIL Vote 795 Buglri Municlpal Council Shs 64,081,000 was requested to cater for additional revenue due to under projection of Appropriation in Aid during budgeting and non- subm sion at the time of appropriation by Padiament.
bI DEVELOPMENT EXPENDITURE
L Vote OO2 State House Shs 5,700,000,000 was provided to compensate National Housing and Construction for the land strategically occupied by State House.
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LLO II. Vote OO8 Mlnistry of Finance, Planning and Economic Development The Ministry requested for an additional Shs 27,717,123,928 to cater for external financing, unspent balances under FINMAP 3 for the FY 2017/18, construction of the new office block and rent obiigations to host the Afri - Exim Bank.
I. Vote O13 Mlnistry of Educatlon and Sports The Ministry requested for additional Shs 14,936,457,1O2 to cater for taxes for donor-funded projects and recruitment of staff under the Higher Education Science and Technolory Project.
IV. Vote O14 Mlnistry of Health Shs 3,565,787,550 was provided for the purchase of land and construction of the Waste Management System at Kiruddu Hospital. The situation at the Hospital was dire and required urgent intervention.
V. Vote O17 Mlnistry of Energy an VI. Vote 119 Uganda Reglstratlon Servlcea Bureau Shs 710,000,000 was released to the Bureau to procure an online security system. VII. MakerereUniverslty Shs 5,577,982,956 was released to the University to cater for the construction of an indoor sports facility when the University hosted the 3rd World Universities Netball Championship. II. Uganda Revenue Authority Additional Shs 930,000,000 was released to URA for the procurement of motorcycles for mobilisation of taxes from hard to reach areas. lX, Uganda Pollc€ Force Additional Shs 39,704,614,875 was released to Uganda Police Force to cater for the procurement of the National Data Monitoring System and Ca s under classified expenditure. X. Misslon ln England The High Commission requested for additional Shs 2 2 680 to repair the sewer system in the Mission Offices. xr. XII. XIII. \-)tl Xry. Uganda Investment AuthorltY Additional Shs 510,122,096 was released to the UIA to compensate squatters in Tangshan Industrial Park in Mbale' XV. Wakiso District Shs 165,604,548 was released to the District to cater for under projection of Appropriation in Aid. XVI. Arua Municipal Council Shs 7,20O,426,128 was released to the Municipal Council to cater for cash balance for the FY 2Ol7 /18 under Uganda Support to Municipal lnfrastructure Development (USMID) and under projection of Appropriation in Aid. XVII. Entebbe Muaicipal Council Shs 3,495,156,486 was released to the Municipal Council to cater for the unspent cash balances for the FY 2017 ll8 under Uganda Support to Municipal Infrastructure Development IUSMID). XVIII. Fort-PortalMunlelpalCouncil for -I Shs 3,649,745,524 was released to the Municipal Council to cater the unspent cash balances for the FY 2077 178 under Uganda Support to Municipa.l Infrastructure Development (USMID). XIX. Gulu Munlclpal Council Shs 19,245,579,840 was released to the Municipal Council to cater for the unspent cash balances for the FY 2Ol7 /18 under Uganda Support to Municipal Infrastructure Development (USMID). XX. Jinja Munlclpal Council Shs 7,740,210,874 v/as released to the Municipal Council to cater for the unspent cash balances for the FY 2Ol7 ll8 under Uganda Support to unicipal Infrastructure Development (USMID). XXI. Kabale Municipel Councll Shs 2,370,874,082 was released to the Municipal Council to cater for the unspent cash balances for the FY 2OL7/18 under Uganda Support to Municipal Infrastructure Development (USMID). )O(II. Lira Municipal Councll Shs 8,866,338,579 was released to the Municipal Council to cater for the unspent cash balances for the FY 2Ol7/18 under Uganda Support to Municipal Infrastructure Deve ent (USMID). IO(III. xxry. ) 15 XXV. Masaka MuniclPal Council Shs 6,420,906,049 was released to the Municipal Council to cater for cash balance for the FY 2017 /18 under Uganda Support to Municipal Infrastructure Development (USMID) and under projection of AIA X)(VL Mbale MunlciPal Councll Shs 6,796,613,663 was released to the Municipal Council to cater for the unspent cash balances for the FY 20\7/18 under Uganda Support to Municipal Infrastructure Development (USMID)' XXVII. Mbarara Munlcipal Council Shs 14,332,713,222 was released to the Municipal Council to cater for the unspent cash balances for the FY 2Ol7 /18 under Uganda Support to Municipal Infrastructure Development (USMID). IOrVUI. Moroto Munlclpal Councll Shs 1,129,779,402 was released to the Municipal Council to cater for the unspent cash balances for the FY 2Ol7/18 under Uganda Support to Municipal Infrastructure Development (USMID). XXIX. Soroti Munlclpal Council Shs 1,587,666,550 was released to the Municipal Council to cater for the unspent cash balances for the FY 2Ol7 178 under Uganda Support to Municipal Infrastructure Development (USMID). X)O(. Tororo Munlclpal Council Shs 4,876,186,8O7 was released to the Municipal Council to cater for the unspent cash balances for the FY 2Ol7/18 under Uganda Support to Municipal Infrastructure Development (USMID). XXXI. Hoima Municlpal Council Shs 10,595,194,152 was released to the Municipal Council to cater for the nspent cash balances for the FY 2OL7 178 under Uganda Support to Municipal Infrastructure Development (USMID). XX)fiI. Klra Municlpal Councll Shs 321,885,000 was released to the Municipal Council to cater for the under projection of AIA for the FY 2017 I 18. x)ogII. xxxrv. xxxv. xxxvL ,o(xvII. xto(vlu. lcto(x, xL. 16 XLI. Vote O1s-Ministry ofTrade' Industry and Cooperatlves: XLII. Shs 5 btllion was provided for the compensation ofBugisu Cooperative Union. The Committee seeks to establish outstandlng compensatlon clalms for the Buglsu Cooperatlves and all other CooPeratlves. The Commlttec ia requesthg the House to dlffer conslderation of thtg matter untll all necessary information has been obtalned and a recommendation by the Committee made thereof' 5.2 COMMITTET OBSERVATIONS AND RECOMMENDATIONS 1. Poor Planning by MDAs: The Committee notes that majority of the request above should not have been entertained by the Ministry of Finance in the first place. The Committee noticed a continuous conspiracy of uniform justification of expenditure between different votes a matter that should have been resolved by the Ministry of Finance by advising the respective accounting officers to wait for the following Financial Year. The commlttee recommends that the Ministry of Finance should be warned about th€s€ deficlencies and in future the Mlnistry and olficers concerned should be held liable for the loss and mlsuse of funds. 2. Suspected misuse of Funds by URA: The committee was informed that Shs 17, 356,870,159was released to URA to cater for the procurement of Electronic Fiscal Device to enhance revenue collection. The committee however noted that from this allocation, Shs 5,710,515,159 was instead used for Welfare and Entertainment under different sub programs within URA contrary to the purpose for which the supplementary request of ! Shs 17,356,870,159was made. This matter requlres further lnvestigatlon by the committee and shall for the tlm€ belng be excluded from supply. 3. Worsening Trend of under projection of ApproPriatlon in Aldl The Committee observes that several votes especially the districts and Municipal Councils received additional funding due to under projection of Appropriation in Aid and non-submission at the time of appropriation by Parliament. The Committee notes that the Ministry of Finance ahould never have entertained such gross negllgence by the respectlve accountlng ofllcers and recommends that ln future the Ministry should gulale these entlties or Proper rules of planning and budgetlng, The committGe la therefore constralned to recommend \s) supply of these figures(Refer to Table 1 for detalls). 4. Justificatlon on Account of Budget shortfalls: Every supplementary expenditure request arises because of a bud shortfall in any vote. The L7 @ Committee observes that several votes especially missions abroad received supplementary funding and the only justification given by Ministry of Finance is 'budget shortfall'. The commlttee ls stlll constralned to recommend supply of these flgures untll sulliclent justlflcatlon is provlded by the Minlstry. The affected votes will for the time belng be removed from the supply schedule (Refer to Table 1 for detailsl. 5.3 RECURRENT SUPPLEMENTARYESTIMATES RECOMMENDED FOR DEFERMENT OF APPROVAL-SCHEDULE 1, FY2O18/2O The following Supplementary Expenditure estimates (tab1e 1) are not recommended for approval pending further verification by the Committee. Table 1; Supplementary &rpenditure Recommended for Deferment of Approval-Schedu1e 1, F"f2O18l 19 Schedule 1 Vote Deacrlptlon Recurrent Developtrrent Total Ministry of Trade, Industry and 015 Cooperatives 5,000,000,000 5,000,000,o00 Uganda Revenue 14 L Authoritv 17,3s6,870,159 18,286,870,159 Sub-Total - Ccnttal Oov't 22.356.8?O; 169 22,355,870,159 Miseions Abroad Uganda High Commission in United Kingdom, London 606,t78,152 606,178,1,52 Uganda High Commission in Canada, 203 Ottawa 24t,625,OOO 241,625,OOO Uganda High Commission in India, 204 New Delhi 394,000,000 394,000,000 Uganda High Commission in Erypt, 205 Cairo 270,800,oo0 270,800,000 Uganda High Commission in Kenya, 206 Nairobi 204,200,ooo 204,200,ooo Uganda High Commission in Tanzania, 207 Dar es Salaam 582,000,000 582,O00,OOO Uganda High -e5 Commission in South 209 Africa, Pretoria 524,615,000 524,615,000 2LO Uqanda Embassv in 504,548,000 504,548,000 18 wa.shington Uganda Embassy in 211 Ethiopia, Addis Ababa 87,85 1,300 87,851,300 Uganda Embassy in 2t3 37 6,97 6,67 I 376,976,671 Ugalda Embassy in 21,4 Switzerlartd Geneva 392,438,at2 392,438,812 Uganda Embassy in 277 Saudi Arabia, Riyadh 655,68r,292 655,6A7,292 Uga-nda Embassy in 218 c n n 897,373,400 897,373,400 Uganda Embassy in 219 Be Brussels 782,765,636 7 A2,7 65,636 Uganda Embassy in 221 DRC, Kinshasa 363,59t,623 363,591,623 Uganda Embassy in 223 Sudan, Khartoum 398,420,000 3q8,420,OOO Uganda Embassy in 1C4 France, PaJis 683,920,000 683,920,000 Uganda Embassy in on\ Germaly, Berlin 499,481,000 499,48I,000 Uganda Embassy in 226 Teheran 498,46t,240 498,861,240 Uganda Embassy in 227 Moscow 569,121,000 569,121,000 Uganda Embassy in 228 Canberra 57 4,87 4,O73 57 4,a7 4 ,O 13 Uganda Embassy in Abu 230 Dhabi 190,000,000 190,000,000 Uganda Embassy in 231 Buiumbura 388,920,000 388,920,000 Mission in Ankara 481,319,700 481,319,700 Mission in Mogadishu 400,000,ooo 400,000,000 Mission in Kuala 235 Lumpur 33 1,106,800 33I,I06,800 236 Mission in Mombasa 47 6,934,490 476,934,490 Mission in Algiers 724,O48,248 7 24,O48,244 r'!}ub-Total -Mlsslong Abmart : 13.101.651.377.. Local Governments s01 Adiumani District 150,000,000 150,O00,000 512 Kabale District 144,384,000 144,384,000 513 Kabarole District 128,000,000 128,000,000 534 Masindi District | .122 ,332 ,063 t,122,332,063 539 Moyo District tt2,332,450 112,332,450 546 Ntungamo District 8t2,270,895 812,270,495 4ss Soroti District 55,7 58,000 55,758,OO0 555 Wa-kiso District 1 1,935, 198, I80 165,604,548 12,tOO,802,728 560 lsingiro District 6 17, 13 I ,O28 617 ,131,O24 606 Nwova District 806,250,966 806,250,966 618 Pakwach District 200,000,000 200,000,000 62r Kyotera District 786,297,200 786,297,200 625 Kasanda District o,a57,43t \2,857,431 751 Arua Munici al Council 3,220,a24 ,960 3,220,824,960 Fort-Portal Municipal Council 728,000,000 728,000,o00 754 Gulu Municipal Council 4,a49,829,700 4,849,829,100 755 Jinia Municipal Council | ,327 ,656,123 I ,327 ,656 ,r23 Masaka Municipal 759 Council 1,965,281,700 1,965,281,700 760 Mbale Munici a,l Council 125,000,000 125,000,000 Mbarara Municipal 76t Council 2,495,585,453 2,495,585,453 Bushenyi- Ishaka 777 Municipal Council 50,603,000 50,603,000 78t Kira Municipal Council 1,544, 138,O00 321,885,OO0 1,866,O23,000 795 Bugiri Municipal Council 64,081,000 64,081,000 Sub-Totel 33 1 482489,548 301 TOTAL 68,712,333,O85 487,4a9,544 69,199,822,633 5.5 R"EICURRENT SUPPLEMENTARY ESTIMATES RECOMMENDED FOR APPROVAL - SCHEDULE t, FY2O1A l2O Below are the Supplementary Expenditure Estimates by Vote and category recommended for approval. Table 2Recurrent Estimates Recommended for Approval - Schedule I' FYzolalL9 Schedulc I Vote Descrlptlon Recufrent DeveloDment Total 001 Offlce of the President 16,000,000,o00 16,000,000,000 oo2 State House 79,t]s,L14,512 5,700,000,o00 84,805,114,512 oo3 Office of the Prime Minister 467, r56,000 467,156,000 006 Ministry of Foreign Affairs 1,000,000,000 1,000,000,o00 Ministry of Finance, Planning & 008 Economic Dev, r,380,000,000 27 ,7 t7 ,123,924 29,O97,123,928 009 of Internal A-ffairs 2.000,000,000 2,OOO,000,000 Ministry of Education and o13 Sports t4,936,457,1,O2 14,936,457 ,102 o14 Ministry of Health 3.564,787,550 3,564,7a7 ,550 Ministry of Ener$, ald Mineral o77 Development 62,76A,935,O44 62,768,935,O44 +f1 Ministry of Science, Technolory and lnnovation 3 ,547 ,857 ,7 06 3,547,85t,706 . I I 023 20 ) Uganda Registration Services 119 Bureau 385,000,000 710,000,000 1,095,000,000 Education Service Commission 1.200,000,000 1,200,000,000 Mal 744 U Police Force 39 ,704,614,87 5 39 .7 04 ,6 14 ,87 5 310 Uqanda Inv€stment Authority 570,122,096 s 10, 12 2,096 Uganda National Oil Company 311 (uNocl 14,720,000,000 14,720,000,000 3t2 Petroleum Authority of UgarLda 16.706,358,883 16.706,358,883 162,120,023,551 298,631,504,552 Miesions Abroad Uganda High Commission ln 202 United KinRdom, London 249,527 ,680 249,527,6aO -Mlsglons Abroad .. 249,627,6A0 Local Govcrnment 757 Arua Munici Council 7,200,426,728 7 ,200,426,t28 752 Entebbe Municipal Council 3,495,1s6,486 3,495,156,486 Fort-Portal Municipal Council 3,649,7 45,524 3 ,649 ,7 45 ,524 754 Gulu Municipal Council 19,245,579,a40 19,245,579,840 755 Jinja Municipa.l Council 7,740,2tO,474 7,740,210,474 Kabale Municipal Council 2,370,87 4 ,O82 2.370.87 4.O82 754 Lira Municipal Council 8,866,338,579 8,866,338,s79 759 Masaka Municipal Council 6 ,420 ,906 ,O49 6,420,906,O49 /ou Mbale Municipal Council 6.796,613,663 6,796,613,663 76r Mbarara Municipal Council 74,332,7 13,222 74 ,332 ,7 13 ,222 Moroto Municipal Council r,t29,779,402 1.129,779,402 763 Soroti Municipal Council 1.s87,666,550 1,587,666,550 Tororo Municip a.l Council 4.87 6,196.4O7 4 ,87 6,196,4O7 771 Hoima Municipal Council 10.595,194, 152 10,595,194,1s2 TOTAL 136,511,4a1,rO1 260,676,952,599 397,188,433,690 2r PART C 6.OPROPOSED SUPPLEMENTARY ESTIMATES UNDER SCHEDULE ITO. 2 FOR THE FV ?OLA I L9 Supplementary Schedule No. 2 comprises Shs 1,173.82 billton of which expenditure of Shs 403.576 billion has already been authorized within the 3Yl legal provision (Refer to Appendix 2 for details) andshs 770'239 btllion *e.equeit" that require prior Parliamentary approval (Refer to Appendix 3 for details). In addition, the Minister also presented Addenda to Supplementary Expenditure Schedule No. 2, worth Shs 45.627 bllllon(refer to Appendl'r 4 for details). As earlier mentioned Parliament already considered and approved Shs 2aO,O46,77 6,933 development expenditure under Vote 016 Ministry of Works and Transport for procurement of aircrafts under Uganda National Airline Company Ltd and Shs 12'OOO'OOO,OOO ground rent arrears to Kampala Archdiocese under Vote 156 Uganda Land Commission. This would have the effect of reducing the funds under Supplementary Schedule 2 (Prior Approval) to Shs 478.192 bllllon. 6.1 WSTIFICATION OF THE EXPENDITUFS BY VOTES (ALREADY AUTHORJZED.WITHIN 3%I Vote OO2-State House: Shs 66.886 billton has been provided to cater for urgent supplementary expenditure as a classified item. II- Vote OO5- Mlnistry of Forelgn Affairs: Shs 11'O52 billton of which Shs 9.55 billion is to cater for paltnent of outstanding arrears for contribution to the African Union. This payment ensures that Uganda has settled all outstanding commitments to the AU, in line with a decision taken in the previous African Union Summit where all member States with arrears would be sanctioned and their principals not allowed to address the summit. Shs l'5 billion was provided to replenish the funds used by Ministry of Foreign Aifairs, under this item, to operationalize the Uganda Mission in Doha III Vote 011- Minlstry of Local Government: Shs 29.292 blllion has been provided to cater for procurement of motorcycles for Sub County Chairpersons, stamps and induction of new councilors. This is aimed at easing transport for sub county Chairpersons and facilitation of Councilors and LC 1 Chairpersons to execute their functions. IV Vote O12: Minlstry of Lands, Houshg and Urban Dev€lopment- Arnuru Sugar Can€ Project Shs 6'1O6,426,517 billton The Ministry requested for an additional Shs 6,1O6,426,517 tor development expenditure to cater for Amuru Sugar Cane project. Amuru District Land Board identified land in Amuru District that was Z .s lt to be allocated to Madhivani for a sugar project' However, the Amuru Community resisted this allocation and this prompted Government of Uganda to negotiate with the Community and a settlement reached in 2015. In the agreement, Amuru Community granted 10,000 Ha to Government for the Madhivani Sugar works project on condition that Government would compensate the occupants on the land as customary owners, The total compensation determined by the Chief Government Valuer was Shs 26,221,855,83O.1n FY 2077 / 18 Parliament approved a supplementary request of Shs 12.Obn to ULC but was not utilized as the FY was coming to a closure. Parliament in the FY 2078/19 appropriated Shs 5.4 billion on top of whichShs 6.1 billion has been released to the Ministry of Lands leading to a total of Shs 11 5 billion being paid so far. A balance of Shs 14.7 billion remains outstanding to date. The Amuru Sugar Cane Project is critical in restoring the economic activities of the region following a devastating war that lasted for twenty years. Therefore the Committee recommends that the amount requested ofShs 6. 1 billion be approved. Minlstry of Lanals and Urban Development (Vote Ol2f Shs 13.O bllllon Recurrent Expendlture VI (a) Outstanding paymcnt for ranches compensatlon The Government of Uganda carried out an exercise of restructuring ranches in Masaka, Ankole, Buruli, Singo and Kiryadongo in 1998 and these ranches were taken over by the Government' The affected ranchers petitioned the President and requested for Shs 38.0 billion compensation. However, the MoFPED has made a partial release of Shs 10.0 billion to the affected ranchers through the Ministry of Lands leaving a balance of Shs 28.0 billion' lb) Shortfell of Shs 3.O for the Commisslon of Inquiry on land matters Owing to the extension of the Commission of Inquiry in to the [,and matters, the Ministry requested shs 26,612,001.081 in the budget for the FY 2018/19. The request was time bad as the budget as the budget had been tabled before Parliament for appropriation. Shs 3.0 was advanced by the Ministry of Lands to the Commission and is now being replenished under supplementary expenditure. Vote Ol3-Ministry of Education and Sports: Shs 1.12O bllllon was provided to cater for counterpart funding to enable procurement of assorted furniture for eighty four (84) pri sch ls. This was a 23 requirement for accessing US $ 4.4 million under the Uganda Teacher and School Effectiveness Project that is funded by the World Bank. VIII Vote Ol4-Ministry of Health: Shs 4.O37 blllion was provided to cater for operations of the newly constructed Maternal and Neonatal Unit at Mulago National Referral Hospital. IX. Vote Ols-Mlntstry of Trade, Industry aud Cooperatlves: Shs 2.950 billion was provided as the balance on the compensation to Bugisu Cooperative Union. The Committee deferred thls matter to establish ell outstandlng compensation claims for Buglsu Cooperative Union and all other Cooperatlves. Vote O16-Ministry of Works arrd Transportl Shs 6.500 billion was provided to cater for supervision consultancy services for construction of Kabaale International Airport in Hoima (Shs 6.OOO billionl and elections for Ieaders of Taxis and Bus Orga-nizations (Shs O.5OO billtonl. The Airport is part of the infrastructure needed to support oil production. XI Vot€ Ol7-Mlnlstry of Energy and Mlneral Development: Shs 32.646 billton was provided to finance the ongoing construction at Karuma, Isimba and Nyagak Hydro power plants. The funding will cover the following . Supervision costs for the Owner's Engineer for lsimba HPP, due to extension of works until March 2O19;Supervision costs for the bridge and access road at Isimba HPP . Replacement of the Owner's Engineer at Karuma HPP to ensure continuity of works after expiry of the current contract; . Supervision of Nyagak III HPP; . Initial funding for Operation and Maintenance costs at Isimba HPP; . Shortfalls on the Community Development Action Plan at Karuma for acquiring 200 acres of land for resettlement of 100 vulnerable PAPs; . Financing the Second Licensing Round for petroleum; . Activities related to Kalagala offset area in relation to Isimba HPP xII Vote Olg-Mlnistry of Water and Environment: A total of Shs 7,627 blMon of which Shs, 3.627 bllllon has been provided to cater for implementation of Kalagala off set sustainable management plan as per the Indemnity agreement for Bujagali Hydropower Project u*1 between the World Bank and GoU. Shs 4 billion is to cater for construction of water supply systems for Kibaale Town and bando-Kasimbi, in order to address the water es in these areas. 24 /\ However, The Committee did not receive submission from the Ministry of Water and Environment on this request. The Committe€ ls constrained to recommend supply of this amount until surllclent Justificatlon ls obtained. XIII. Vote 02l-Mlntstry of East Afrlcan Communlty Affalrs: Shs 6.347 billion was provided to cater for shortfalls in contributions to East African Community Affairs to which Uganda was the Chair at that time. Vote 116-Nattonal Medlcal Stores: Shs 2O,OOO btllton was provided to cater for outstanding obligations for medicines supplied on credit by M/s CIPLA Quality Chemical Industries to avert stock outs in FY 2077 / l9.The Committee noted chronic frequency of supplementary requests by the National Medical Stores. The Committee recommends that Gov€rr.mcnt should determlne the annual cost of medicines requlred and budget for them in the normal budgetlng proc€ss. XV Vote l2o-National Cltlzenshlp and Immlgratlon Control: Shs 60.212 billion was provided to cater for implementation of E - passports. At the time, Uganda was the only country in the EAC that had not yet implemented the International E-Passports. There was therefore a need to provide for the supply of e-Passport system and related hardware, Personalization Center, 600,000 blank e-Passport booklets, service and maintenance of e-Passport system, to enable Ugandans to start having International E-Passports. The Commlttee was informed about the rullng by the Speaker requiring Government to conslder the need for necessary legislation providing for the issuance and operatlonallzatlon of the EAC electronlc passports as a replacement for the Ugandan passports, The Committee opted to stand over this matter as more lnformation ls obtalned about the steps belng taken to comply wlth the Speaker's rullng. XVI Vote 136-Makerere Unlversity: Shs 5.17O billion to facilitate the payment of outstanding balances due to Makerere University Retirement Benefrts Scheme. This was as per the Memorandum of Understanding that GOU signed with MURBS in order to prevent Garnishing of the University Accounts. XVII Vote l3?-Mbarara Unlverslty of Science and Technology: Shs 1.6 billion was provided as additional Appropriation in Aid resulting from additional revenue from accounts of students' debtors and Sale of rom the University Farm which was received after the Budget for FY 2Ola/19 had already been appropriated. Civen that these are resources collected by the University, were edasa ?( supplementary expenditure to enable the University run operational expenses as well as meet costs on the construction of the student hostel. XVIII. Vote l4s-Uganda Prlson Services: Shs 16'9OO blllion has been provided to enable Uganda Prisons meet the shortfall on food, beddings and uniform for the prisoners. The budget allocation for food for prisoners is not sufficient and this has resulted into accumulation of arears. The supplementary of Shs 13,914 btllton will enable the Service meet the food requirements for March to June 2019. ln addition, there is a shortfall of Shs 3 billion to meet the requirement of providing at least one pair of Uniform per prisoner. xIx Vote 149- Gulu Universltyt Shs O. 364 billion as additional Appropriation in Aid resulting from excess revenue that was collected in FY 2017/ 18 and remitted to the Uganda Consolidated Fund. xx. Vote 301- Llra Unlversity: Shs 0.O76 billion as additional Appropriation in Aid resulting from revenue which was collected in FY 2017 l18 and remitted to the Uganda Consolidated Fund. XXi Vote 3O7- Kabale University; Shs 1.259 btllton as additional Appropriation in Aid resulting from revenue which was collected in FY 2Ol7 /18 and remitted to the Uganda Consolidated Fund. XXII Vote so8-Soroti University: Shs 5,399 bllllon was provided to cater for staff recruitment to facilitate student enrollment this Financial Year and opening of the University. XXIII Varloue Local Governmenta were provided with Shs 11.148 btllton of which (refer to Appendix 2 for details): a) Shs 6.255 bllllon was to cater for correction of under projection of locally raised revenue made at the time of approval of the Budget; ; and b) Shs 4.892 blllion as additional external development financing from Development partners. The Commlttee recommends the followlng: 1. The Committee ia conatrained to supply Shs 11.1485 btllton (refer to table 4 for details). The Commlttee noted that, the Justlflcatlon ptovlded for the supplementary €xpendlture request as lnadequate and not conslstent wlth law, The justification provided for this request was, "addltlonal local *s, revenue due to under proJection durlng budgeting aod non- submisslon at the tlme of Approprlatlon". In additional th€re was no Justificatlon provided for ndt of the addltlonal external funds. 26 t" xxIV Public Unlversltles were provided with Shs 33.87O billion to cater for payment of Salary arrears and enhancement of salary for both teaching and non-teaching staff. The Commlttee recommends that Shs 33.87 btlllon be supplled. 6.2 JUSTIFICATION OF THE EXPENDITURE BY VOTES (EOR PRIOR APPROVAL BY PARLIAMEITT) Vote OO1 - Office of the Presldent: She 3.O96 billion to cater for the requirements of the Commission of lnquiry into land matters. The Commission of Inquiry into the Effectiveness of Law, Policies and Processes of Land Acquisition, Land Administration, L,and Management and Land Registration in Uganda 2017 was established by His Excellency the President on the 8th December 2016. On the 4tt May 2018, the President extended the mandate of the Commission for a further 18 months up to November 2019. The Committee noted that whereas for the FY 2Ola/2O19, rhe Commission submitted a budget of Shs 23.3 billion, no provision for funding was made in the annual budget. The Commission thus continues to thrive on piecemeal releases made under supplementary expenditure estimates. Thc Committee therefore recommends the approval of Shs3.O96 billion aB provlded to mcet outstandlng Commisslon €xpenses. II Vote OO2 - State Houser Shs 10.3O3 blllton to cater for purchase of Okello House. The Committee was informed that the owner of the House had mortgaged the property and the lender put it up for public auction. State House bid of ShslO.3billion was found most successful. The Commlttee recommends the Shs 1O.3O3 bllllon be provided to State House for the purchase of the property. III Vote OO4- Ministry of Defence: Ushs 38O bllllon Parliament authorized Govemment to borrow USD 100 million (approximately Ushs 380 billion) from the domestic market to finance development classified supplementary expenditure under the Ministry s of Defence and Veteran Affairs. The request was considered by the committee on classified expenditure and a no-objection granted for the expenditure. The House ls requested to supply Ushs 38O btllion *N) as requested for classifled expenditure. rv Vote OO7 - Ministry of Justice and Constitutional Affairs: Shs5,OOO,OOO,OOO to enable representatlon of Uganda in the cases egalnst DRC and the termlnatlon th€ oncesslon. )7 IJ The Committee observed that Ministry of Justice and Constitutional Affairs entered into agreement with Ms. Foley Hoag of 7717 K Street IIW Washington (USA) to represent the Government of Uganda against DRC at the International Court of Justice. The three year was signed on the Sft April 2016 but was deemed to have commenced on the 23.aof March 2016. The Ministry informed the Committee that up to date the invoices are still outstanding.UShs2,62l'857'5OO is proposed as advance payment for this purpose. The Ministry further informed the Committee that on 7th April 2006 Government entered into a concession agreement with Rift Valley Railways Uganda Limited (RVR) for the provision of Railway Services in Uganda. However, Government cancelled the Concession due to the repudiatory breach contract by RVR Uganda Limited arising from the inability to meet several concession obligations. As a consequence, RVR had declared a dispute and requested to refer the matter for arbitration as provided under the concession agreement. The Committee noted that the Ministry has requested for additional UShs2,378,142,5OO for short-term consultancy to process the arbitration. The Committee therefore recommends the Shs 5,OOO'OOO'OOObe provlded to thc Miristry of Justice and Constltutlonal AIIalrs to enable representatlon of Ugande in the cases against DRC and the arbltratlon casc on the termination of the RVR concession. vote OO8 - MoFPED: Shs 1,O93,OOO,OOO The Committee was informed that the funds are needed for the External Funding under FINMAP from EU contingency towards closure activities of FINMAP III. The funds are mainly for verification and assessment of FINMAP assets, REAP Launch and Dissemination as well as Technical Assistance by the Project Finance Management advisor. The Committee recommends Shs 1,O93,OOO,OOO be provided to the Ministry of Flnance, Planning anil Economlc Development from External Fundlng under FINMAP from EU contlngency towards closure actlvltles of FINMAP UI. VI. Vote OlO - Ministry of Agrlculture, Anlmal Industry & Fisherles: N Shs 3 btllion for the control of the Foot and Mouth Disease and the outbreak of Tsetse and Trypanosomlasls The Committee was informed that there was re-emergency of Animal Trypanosomiasis in areas around Lake Mburo National Park and *x5 Murchison National Park. The Committee was informed that the Districts affected are Lyantonde, Rakai, Isingiro, Mbarara, and Kiruhura around Lake Mburo and Oyam, Nwoya, Bullisa, Kiryadongo and Pakwach around Murchison National Park. The strv has requested for Shs 1,800,000,000 to undertake tsetse and Trypanosomiasis control using Integrated Pest Management Control approach. The Committee was further informed that Ministry of Agriculture has made progress towards addressing the Foot and Mouth Disease outbreaks in the Country, through imposing quarantines and providing vaccines. However, FMD outbreaks that result into continuous quarantines remain widespread in the country' The Ministry is therefore requesting for additional 1.2 billion to enhance the development of effective and sustainable FMD control approaches with Specilic objectives of; a) Building capacity of all stakeholders along the value chain on the basic FMD control concepts, establish the gaps that exist and map out the high-risk practices. b) Building technical capacity among different stakeholders on early case detection, early reportinS, sample collection that contributes to effective reduction of FMD outbreaks (Early quarantine lifting) c) Supporting and strengthening the FMD vaccine evaluation and monitoring capacity The Commlttee recommends that the supplementary request of Ushs 3.Obn for the control ofthe Foot and Mouth Diseese and the outbreak of Tsets€ and Trypanosomlasls be approved. VII. Vote O12 - Ministry of Lands, Houslng and Urban Development: Ushs 3 billion for Land Compensation to Buganda Klngdom The Committee was informed that Government of Uganda entered into an agreement with Buganda Kingdom in 20 13 in which the Government accepted to compensate the Kingdom for some properties that were confiscated in 7967 . These properties include MutesaHouse, plot 42 Queen's Garden Road lnndon and Plot 52 Kampala Road - King Fahad Plaza. The Committee noted that H.E the President constituted an inter- ministerial team composed of the Ministry of Finance, Planning and Economic Development, the Ministry of Lands,Housing and urban Development, the Ministry of Defence, Internal Affairs and the Attorney General to advice Government on the issues of compensating Buganda Kingdom. The Committee was informed that the team came up with a report on the claims amounting to Shs52.1 billion. However, payment of Shs3 billion is an initial instalment while the balance would be catered for during the subsequent years. The Commlttee recommends that Shs3.O billion be approved as requested and efforts be made to pay the balance at the n€arest t+&-) opportunity. 29 -) VIII. Vote O 14 - Mlnlstry of Healthi Shs 10,896,337,913 The Committee was informed that Shs 10,896,337,913 is needed as counterpart funding towards construction of the Regional Centre of Excellence in Pediatric Surgery in Entebbe as per the Memorandum of Understanding. Government is required to provide 20%o co-linancing to this project, an equivalent of Shs 44.9 billion. Government has so far provided only Shs 10.6 billion. This additional funding will leave a balance of Shs 23.404 billion. The Commlttee recommends Shs 1O,896,337,913 be approved as rcquested, IX. Vote O15 - Mlnlstry of Works and Transport3 Shs 1,5 btllton The Committee was informed by the Ministry of Works and Transport that on the 29th November 2018, H.E The President officially opened a number of factories in Namanve Industrial Park. Among the factories opened include Luuka Plastics, Alfasan (U) Limited and Steel and Tube Ltd. During the opening, the MD of Stee1 and Tube presented to the President the problem of flooding at the factory given the fact that the factory is located at the lowest belt of the Industrial Park. H.E the President pledged Government support that included, backfilling, drainage and paving works. The committee recommends provision of Shs l.Sbtlllon for conatructlng the drainage channel to avert floodlng ln the area. The Balance of the works sill be handled by UIA tn I.Y?O19/2O. Vote O l7-Ministry of Energy and Mlneral Development: Shs 28 billton The Committee was informed that an Escrow Account opened by UETCL resulting from a Variation Order from the High Court regarding acquisition of land at Luzira Industrial Park. This deposit will enable UETCL continue with works towards electrification of Industrial Park that had been deraiied by compensation issues resulting from land owners who had sued the Government after their land titles were cancelled. Whereas NEMA and Ministry of Lands had advised against compensation of the titleholders, given that the area is considered as a wetland, the proprietors sought legal redress. The Committee was informed the court order was to allow works to continues as the matter is being resolved in the Courts of Law. The Committee recommends a Supplementary requ€st of Shs 28 blllion be provlded to the Ministry to open th€ Escrow Account, XI Vote Ol8-Ministry of Gender, Labour and Soclal Development: Shs 3.4 billion ,+s-) The Committee was informed that Cabinet gave a directive to the Ministry of Gender, l^abour and Social Development to remove all the Street Children from the Streets under Cabinet Extract 301 (CT 2018) 6e June 2018. The Ministry informed e Com that th 30 /) intervention is being spearheaded by a Multi -Sectoral Task Force on Children comprising of the Ministry of Internal Affairs, KCCA, Uganda Police, Ministry of Justice, Ministry for Karamoja Affairs and Civil Society. The Committee noted that the implementation arrangements include; a) Surveillance on the streets b) Withdrawal of children from the streets c) Rehabilitation d) Tracing, reintegration and follow-up e) Infrastructure development and logistic support to the transit centers f) Apprenticeship skiils training and economic empowerment g) Advocacy, Community awareness and coordination The committee appreciates the need to handle the problem of street children which was a growing menace particularly, in Kampala, Jinja and other major urban areas. The Commlttee recommends Shs 3.4 blllion be provided for these activltles. XII. Vote 152 - NAADS: Shs lO billion for provlsiou of plentlng materlals for out growers ofAtlak Sugar Factory The Government of Uganda through NAADS is supporting Members of Atiak Sugar Plantation Out-Growers Cooperative Society Limited to implement an out grower sugarcane production scheme. The project is being implemented under a Memorandum of Understanding (MOU) between Atiak Sugar plantation out growers Cooperative Society Limited and Horyal Investment Holding Company Ltd. The Committee was informed that at its inception, the project targeted to cover 13,841 acres at the main plantation at Atiak, Amuru District. However, Government decided to expand the project to cover an additional 15,000 Acres of sugar cane under the project at Lamwo site. The project will benefit 6,455 households each household allocated planted fields ranging between 3-5 acres. The Project Objectives are; a) Uplift the economic status of vulnerable groups including women and returnees from exile b) Support the establishment of co-operative groups and out grower's scheme for the project with land preparation and inputs such as seeds, herbicides and fertilizer. c) Coordinate and link the out growers to the Atiak Sugar factory owned by Horyal Holding Investment Ltd. Land for the out grower scheme has been contributed as follows: - Owner of land No. of acres Slte Mze John Omaya& family 7,84t Atiak J1 4 Horyal Investment Holdings Atiak Atiak Out growers Cooperative 300 Adjumani Atiak Out growers Cooperative Atiak AlrrrAlali community 15,000 Lamwo The above land is availed for purposes of sugar cane growing till the year 2024 under a Memorandum of understanding. Benefits from the proJect a) The Project employs 700 people on a daily basis providing casual labour earning average of UGX 14,000 per day. b) The project is expected to provide a livelihood to returnees who had been displaced by war. c) Each beneficiary will earn an annual profit that ranges between UGX 11,082,089 to UGX 76,119,402 through sale of sugar cane to the factory for the duration of 5 years. d) The project is expected to stimulate out growers planting sugar cane and earn from sugar production as providers of raw materials for the factory e) The factory will employ 3,50O people to v/ork in the factory when operating at full capacity. Ownership of Atiak Sugar Factory: The committee examined the ownership of the investment company in the sugar factory and found that Horyal Investment Holding Company owns Atiak Sugar factory with the following Shareholders: 1. Laburnam Courts Limited- 8,343, 103 Shares 2. Uganda Development Corporation- 6, 400, 000 Shares 3. Kingston Enterprises Limited- 3, 371,562 Shares 4. AminaHersiMoghe- 533, 438 Shares 5. MohamoudAbdi Mohammed- 533,438 shares Information from Uganda Development Corporation indicate that the first Injection of funds into Horyal Investment Holding Company by the Corporation of USD 5.2M resulted in 10.1olo Shareholding was not received by the company but instead went to reduce the loan amount at DFCU bank. The Committee u-ill probe further into this mdtter to ensure that these shares are dulA allotted to [.IDC, The second Injection by UDC was UGX 45,000,000,000 that resulted in 27.9o/o shares and these funds were used to complete the factory. The Commlttee notes that this project ls a form of affirmative actlon to the vulnerable persons and to a reglon previously devastated by war. Parllament is requested to approve a supplementary budget of Shs IO,OOO,OOO,OOO for NAADS Secretariat to undertake the above proJe 32 6,4 JUSTIFICATION OF THE EXPENDITURE BY VOTES (ADDENDA TO SCHEDULE 2I 1. State House (Vote OO2l - 1,5 btllton to enable Uganda host Afrlca Now Conference and Kyankwanzi The Uganda's frrst ever Africa Now Think tank summit was held on March 12tt& 13th 2019 at the Commonwealth Resort a-nd Conference Centre in Munyonyo, Kampala. The two-day event was co-chaired by H.E the President alongside other Heads of State and key business Ieaders on the continent. The State House Comptroller submitted to the Committee that additional funding to the tune Shs 668,828,376 was the President's contribution towards hosting the Conference and a classifred expenditure of Shs 830,560,000 was to cater for classified equipment for the Conference and Kyankwanzi under SFC 2. Uganda Investment Authorlty (Vote 132f Shs 2.423 bllllon to cater for outstandlng actlvltles to enable operatioralization of the One Stop Centre Arising out of a Presidential directive, UIA established a One Stop Centre with the purpose to address the following Challenges that were being experienced by the business community: a) Limited access to information on the procedures and guidelines of obtaining a license b) Long bureaucratic internal processes across agencies c) Movement of documents from UIA to MDAs d) Corruption tendencies due to the physical interaction between investors and officers in agencies e) Submission of numerous forms containing duplicate information to different offices f) Lack of collaboration between agencies' systems that makes it hard for agents to quickly resolve investor issues and queries. It was also observed that the establishment of the integrated One Stop Centre has; a) Improved efficiency in delivery of investor services as everything will be a click away. b) Save time by avoiding personnel moving from one oflice to another c) Improve access to information on the procedures and guidelines of obtaining a licence .{+l d) Eliminate long bureaucratic internal processes and duplication of documentation across agencies e) Reduce the chances of cormption tendencies for investors .fr due to the physical interaction ofhcers agencles JJ Currently not all the transactional services can be accessed due to shortage of funds to complete the operationalization of the Centre The Committee recommends a supplementary budget of Shs 2,423,OOO,OOO be accorded to Uganda Investment Authorlty to dellver the remaining work of the onllne e- Biz platform, lncludlng lts maintenance as indicated below: No Actlvltles Ag€ncy Estimated Cost 1 Undertake Business NEMA 190,000,000 Process Re-engineering for Environmental Impact Assessment(EIA) 2 Developing Application NEMA 285,000,000 Programming Interface (APA) for NEMA system to talk to OSC platform directly (e-biz) Develop security layer Directorate of 372,000,000 for the e-Visa system Citizen and and share API with OSC Immigration accordingly. Control 4 Develop interface Ministry of 76,000,000 between e-Biz and the Lands,Housing Lands System and Urban Development & UIA 6 Re-engage NRD to UIA 1,500,000,000 complete the pending interface and annual maintenance of OSC Platform Total 2,423,OOO,OOO 3. KCCA lvote l22l - Shs 25.8 btllion to meet the pending certlflcates on road contract The Committee was informed that in May 2016, KCCA signed multi- year contracts with various contractors to undertake a design update and construction of 42.57 Kms selected roads in various divisions in Kampala. The contract value for all the contracts was Shs 168,438,515,466.The Ag. Executive Director informed the Committee that contracts were signed on the premise that the MTEF allocation to roads and drainages would be suffrcient to pay for the certified works. A year earlier, Government had signed an agreement with the World Bank for the implementation of the Second pala In tional and 34 L/ infrastructure Development Project (KIIDP II) at total cost of USD 175 Million. In the said agreement, Government committed to counterpart funding of USD 8.75 for Resettlement Action Plan (RAP). The Committee noted that Government was to allocate on annual basis a minimum of UGX 10 Billion as its contribution towards the RAP costs under the project, but unfortunately this was not adhered to. The Committee also noted that to ensure the effective implementation of KIIDP 2 to obtain its associated benefits, part of the funds that had been earmarked for implementation of the multiyear contracts was committed to RAP costs. This change in allocation has had an effect on the settlement of contractors' certificates. Management has to-date committed a total of UGX 43 Billion to RAP costs for the KIIDP 2. As a result of this reduction from the infrastructure development budget, KCCA started facing cash flow challenges and this was further exacerbated by some contractors finishing the work faster than had been anticipated. This led to delayed payments and in some cases incurring interest on overdue payment which in itself is wasteful. The Committee recommends that Shs 25.8 billion be provided for KCCA to meet the pendlng certlllcates on road contracts. 4, Vote Oo4:Mlnlstry of Defenceshss.4s4 btllton for the wages for the newly recrulted LDUs The Committee was informed that recruitment came at the backdrop of H.E the President directive to call up reservists to beef up security in the urban centres following numerous murders. The Committee noted that this directive came in the middle of the financial year, therefore the wages were not in the budget of the Ministry of Defence. The Committee recommends that Shs 5.454 b lton be provided to th€ Ministry of Defence and Veteran Affalrs to cater for the wages ofthe newly recruited LDUs 35 5. Vote OO2:State House- Shs 0.597 btllton to cater for the salarles of the Anti- Corruptlon Unlt State House requested for additional Shs 0.597 billion to cater for the salaries of the Anti- Corruption Unit as indicated below Detalled Breakdown of Supplementary Requ€st for the State House Anti- Corruption Unit Number FY 2O18l 19 since of Monthly Annual date of assumption Title Vacancles Salary Salary of duty Director/ Anti- Corruption I 8,000,000 96,000,000 80,000,000 Special Presidential Assistants 5,000,000 300,000,000 100,000,000 Officers 16 3,500,000 672,000,000 273,000,000 Call Center Operators 18 1,500,000 324,000,000 144,000,000 Total 597,OOO,OOO The Committee recommends that the House approves Shs O.597 billion to cater for the salaries ofthe Unlt. 6. Local Governments (Vote 5O1-7971 Shs6.O51 blllion to cater for the wage shortfalls Additional Shs6.O51 billion is required to cater for the wage shortfall for various Local Governments (refer to Appendix 4 for details) The Commlttee recommends the House approve Shs6.O51 billion to cater the for the wage shortfall. (Refer to table 8 for detallsf 7. Vote OO2:State House Shs 760,000,00() to mcet the shortfall under donation item for the Statehouse The State House requested for additional Shs 760.000.0OO as result of the Cabinet decision to help the victims of Cyclone Idai in Mozambique. This was Government of Uganda contribution The Commlttee recommends that an additional Shs 76O,OOO,OOO be provided for thls cause. 8, Vote Ol9-Ministry of Water and Envlronment The Ministry has over the last three years been implementing a project for construction of water works along river Nile at Busaana in Kayunga district. The project completion has been delayed for lack of funding amounting to shs 1.8 billion. The project has been lined up for phase II ADB financing to distribute clean water to different target communities in Kayr:nga and Kamuli districts. However, this cannot be possible without completing phase 1. The matter has been .J t) brought to the attention of the Ministry of Finance by MoWEto provide suppiementary funding as any further delay may resuit into severe penalties and other unnecessary expenses on the loan for phase 2. The committee recommends that shs l.Sbillion be approved as supplementary expenditure to complete phase 1 and open the way for phase 2 implementation. 6.4 RECURRENT SUPPLEMENTARY ESTIMATES RECOMMENDED FOR DEFERMENT OF APPROVAL Table 4t Supplementary E:rpendlture Recommended for Deferment of Approval-Schedule 2 (Already Authorized), FY2O18/ 19 Vote Schedule 2 Description Recurrent Develcpment Total Ministry of Trade, Industry and 015 Cooperatives 2,949,722,688 2,949,722,688 019 Ministry of Water and Environment 4,000.000.000 4,000,000,000 National Citizenship and Immigration 120 Control 60,212,776,51? 60,212,776,512 ',r,000,000,000 Sub total 63,162,499,200 " 67,162,499.200 Local Govcrnme nts 501 Adiumani District 208,411,830 457,761,546 666,173,376 503 Arua District 14,273,824 14,273,824 505 Bundibugyo District 25,306,692 7,800,000 33,106,692 514 Kaberamaido District 15,177,416 15,177,416 523 Kayunga District 66,000,000 66,000,000 528 Kotido District 9,445,522 32,5 18,328 41,963,850 529 Kumi District 161,101,000 161,101,000 535 Mayuge District 73,207,t94 73,207,194 537 Mbarara District 107,702,182 107,702,182 539 Moyo District 400,287,000 36, 160,000 436,447,000 l+4 Nakasongola District 865,92 1,000 865,921,000 4.*.-..J- *ssf 37 545 Nebbi District 45,847,t68 45,847, r 68 556 Yumbe District 134,3 10,007 134,3 10,007 563 Koboko District 30,000,000 30,000,000 571 Budaka District 55,000,000 55,000,000 573 Abim District 87,433, 150 87,433,150 584 Kyegegwa District 257,648,000 257,648,000 592 Kiryandongo District 190,077,637 62,976,520 253,0s4,r57 603 Ngora District 30,1 00,000 30, r 00,000 622 Bunyangabu District 425,000,000 425,000,000 759 Masaka Municipal Council 1,965,282,000 2,546,261,000 4,511,543,000 761 Mbarara Municipal Council 546,730,157 546,730,157 770 Kasese Municipal Council 130,680,000 95,820,000 226,500,000 772 Mukono Municipal Council 188,43 1,000 I 88,431,000 773 Iganga Municipal Council 606,2r 8,000 606,218,000 775 Ntungamo Municipal Council 31,647,615 31,647,61s 776 Busia Municipal Council 165,824,000 165,824,000 780 Makindye-Ssabagabo Municipal Council 1s5,200,000 1ss,200,000 782 Kisoro Municipal Council 870,398,000 870,398,000 Kumi Municipal Council 46,820,853 46,820,853 Sub Totat - Local Goverumeuts 6.235,963.259 4.892.8r5382 tt"148.778,64r TOTAL 69,418,462,459 8,892,815,382 78,311,277,841 wil 6.5 RECURRENT SUPPLEMENTARY ESTIMATES RECOMMENDED FOR APPROVAL Table 6 Recurrent Estlmates Recommended for Supply under Schedule 2, F.Y2OLAI L9 (Already Authorizedf Vote schedule 2 Descrlptlon Recurrent Development Total oo2 State House 64,518,400,000 2,367,400,000 66,885,800,000 Ministry of Foreign oo6 Affairs 11,051,502,675 11,051,502,675 Ministry of Local 011 Government 4.431,735,000 24,860,250,000 29,291,985,000 Ministry of Laids, Housing & Urban o12 Development 3,000,000,000 3,000,000,000 Ministry of Education 013 a-nd Sports 1,120,000,000 1,120,000,000 014 Ministrv of Health 4,036,513,334 4,036,513,334 Ministry of Works and o16 Transport 500,000,000 6,OOO.O00.000 6,500,000,000 Ministry of Ener$./ and o17 Mineral Development 32,646,1.74,854 32,646,174,A54 Ministry of Water and o19 Environment 3,627,000,000 3,627,OOO,000 Ministry of East African 02l Community Affairs 6,347 ,654,168 6,347,654,16a 111 Busitema University 7,7 44,829,222 | ,7 48 ,829 ,222 116 National Medica-l Stores 20,000,000,000 20,000,000,o00 r27 Muni Universitv 707,438,066 707,434,066 136 Makerere Universitv 20,066,748.368 20 ,066 ,7 48 ,368 Mbarara University 137 3.395.573.925 776,477,OOO 4,t72.O50,925 Makerere University Business School 2,954,O94,159 2,954,O94,159 139 Kyambogo University 4 ,398 ,O77 ,569 4 ,394 ,O7 7 ,569 Uganda Maragement 140 Institute 867,296,tO4 467 ,296,704 144 Uganda Police Force 60,000,000,000 60,000,000,o00 145 Usanda Prisons 16,914,000,000 16,914,OO0,000 t49 Gulu University 3,223,47 4,57 3 3,223,47 4,57 3 301 Lira Universitv 819,559,028 76,100,000 895,659,028 Kabale Universitv 2,051.551.218 800,513,627 2,852,064.845 308 Soroti Universitv 2,734,018,030 3,7t8,447,894 5,852,465,924 169.?30.352.iO5 . 139.428.'876:709 so9,159,228.814 Local Governments 501 Adjumani District 16,297 ,O32 231,799,900 247,496,932 503 Arua District 14,27 3,824 L4,27 3,424 505 Bundibusvo District 7,800,000 7,800,000 w3 39 528 Kotido District 518,328 518 328 529 Kumi District 161, 101,000 161,101,OO0 53S Moyo District 36,160,000 36,160,000 556 Yumbe District 134,310,007 134,3 10,O07 563 Koboko District 30,000,000 30,000,000 584 Kveseswa District 257,648,000 257,648,O00 592 Kiryandonso District 62,976,520 62,976,520 Kasese Municipal Council 95,820,000 9 5,8 20,000 Mukono Municipal Council 188,431,000 188,431,000 Busia Municipal Council 165,824,000 165,824,000 Makindye-Ssabagabo 7AO Municipal Council 1s5,200,o00 15 5,2 0 0,000 8ub-Total .- Local . Govertrm€lts 16.297.032 r.589.559.611 TOTAL 169,746,649.t37 141,OO2,139,288 31o,748,788,425 Table 7: Recurrent Estimates Recommended for Supply under Schedule 2, FY2O18| 19 (Requlrlng Prlor Approval of Parllament) Vote Prior Description Approval Recurrent Developm6nt Total 001 OfTice ofthe President 3.096.131 ,501 3,096,131 ,50'1 002 State House 10,303,420,000 '10,303,420,000 004 Ministry of Defence 380.000.000,000 380,000,000,000 007 Ministry of Justice and Constitutional Affairs 2,378.142,500 2,378,142,500 008 Ministry of Finance, Planning & Economic Dev 1,093,000,000 1,093,000,000 010 Ministry of Agriculture, Animal & Fisheries 3,000,000,000 3,000,000,000 0t2 Ministry of Lands, Housing & Urban Development 3,000,000,000 3,000,000,000 013 Ministry of Education and Sports 1.368,535.928 1,368,535,928 0t4 Ministry of Health 10,896,337,91 3 10,896,337,913 016 Ministry of Works and Transport 1,500,000,000 1,500,000,000 017 Ministry of Energy and Mineral Development 28,000,000,000 28,000,000,000 Ministry of Gender, Labour and Social 018 Development 3,400,000,000 3,400,000,000 019 Ministry of Water and Environment 1,800,000,000 1,800,000,000 l0l JUDICIARY 1,946,620,876 1,946,620,876 119 U da tration Services Bureau 1 429 166 664 1 ,429,166,664 I45 U da Prisons 920 026 028 920,026,028 t52 NAADS Secretariat 10,000,000,000 10,000,000,000 Sub total - Central.Gov't :29,038,623,497 435,092;7s7,913 46,t,131,381,410 Local Governments s09 Hoima District 507,283,188 507,283,188 \ss1 517 Kamuli District 764,409,814 764,409 814 522 Katakwi District 446,363,145 446,363,145 531 Lira District '199,0'16,630 199,016,630 536 Mbale District 470,837,537 470,837 ,537 544 Nakasongola District 328,686,746 328,686,746 552 Sironko District 38,563,200 38,563,200 553 Soroti District 225,463.370 225,463,370 560 lsingiro District 301 ,680,756 301,680,756 562 Kiruhura District 236,914,351 :l36 914 563 Koboko District 235,410,409 235,4'10,409 567 Bukwo District 370,139,226 370,139,226 s71 Budaka District 100,349,212 100,349,212 572 Oyam Dislrict 147,843,360 147,843,360 573 Abim District 286,285,471 286,285,471 578 Bukedea District 509,682,686 509,682,686 590 Buvuma District 262,0E0,656 262,080,656 592 Kiryandongo District 208,784,404 208,784,404 594 Namayingo District 363,368,603 363,368,603 s96 Serere l)istrict 664,469,984 664,469,984 599 Lwengo District 92,656,600 92,656,600 603 Ngora District 335,869,094 335,869,094 605 Kibuku District 91,202,915 9'1 ,202,91 5 606 Nwoya District 634,335,544 634,335,544 607 Kole District 96,607,950 96,607,950 611 Agago District 270,490,1 1,l 270,490,',t 11 612 Kween District 422,791,284 422,791 ,284 616 Rubanda District 758,852,958 758,852,958 625 Kasanda District 1,565,344,092 1,565,344,092 752 Entebbe Municipal Council 23,166,900 23,166,900 Gulu Municipal Council 455,237,008 455,237,008 761 Mbarara Municipal Council 224,818,800 224,818,800 762 Moroto Municipal Counci I 144,435,796 144,435,796 764 Tororo Municipal Council 25,224,672 25,224,672 771 Hoima Municipal Council 107,067,188 107,067,188 774 Masindi Municipal Council 149,071,744 149,07 1 ,7 44 775 Ntungamo Municipal Council 56,897,879 56,897 ,879 776 Busia Municipal Council 112,864,000 1 12,864,000 781 Kira Municipal Council 224,818,800 224,816,800 782 Kisoro Municipal Council 36,304,08'1 36,304,081 l6J Mityana Municipal Council 224,818,800 224,818,800 786 Mubende Municipal Council 28,517,600 28,517,600 789 Kamuli Municipal Council 182,725,800 182,725,800 4I -& ,{:; 79s Bu i Munici lCouncil 570 35,242,570 791 Kotido Municipal Council 272,524,068 272,524,068 Sub tofirl - Local Governments 13,239,519,003 13,239.5't9,003 TOTAL 42,278,142,500 435,092,757,913 477,370,900,413 Table 8: Recutrent Estimates Recommended for Supply under Schedule 2, F.YzOlAl 19 (ADDENDAI 1Iote Addendum DeBcrlptlon Recurrent DeveloDment Total o01 Office of the President 3,000,000,000 3,000.000.oo0 oo2 State House 2.856,388,376 2,856,388,376 o04 Ministry of Defence 5.454.OOO.O00 5,454,000,000 Kampala Capital City r22 Authoritv 25,842,564,490 25,842,564,490 Uganda Investment Authority 2.423,OOO.000 2,423,000,000 13.733.388.376 si:szs,gsz.goo Local Governments 501 Adiumani District 7,080,000 7,080,000 502 Apac District 97,800,000 97,800,000 503 Arua District 92,O40,O00 92,040,000 507 Busia District 960,000 960,000 508 Gulu District 28,920,OOO 28,920,000 511 Jinja District 3,120,000 3,120,000 512 Kabale District 235,926,696 235,926,696 514 Kaberamaido District 5,040,ooo 5,O40,OOO Kalangala District 3,000,000 3,000,000 5r9 Karlunqu District 1,920,000 1,920,000 520 Kapchorwa District 75,OO0,OO0 75,000,ooo 52t Kasese District 50,160,000 50,160,000 Katakwi District 39,340,156 39,340,156 524 Kibaale District 123,I20,O00 123,120,OOO 526 Kisoro District 1,800,ooo 1,800,000 528 (otido District 4,920,OOO 4,920,000 Luwero District 1 1.650.788 1 1,650,788 Masaka District 6,840,000 6.840,000 MawRe District 240,OOO 240,000 536 Mbale District 4,080,000 4,080,000 537 Mbarara District t9,920,OOO 19,920,O00 538 Moroto District 479,053,8ss 479,O53,855 42 I M District 840 000 840,000 540 Mpigi District tt9,732,912 110 7'lO OIO 541 Mubende District 152,840,000 152,840,000 543 Nal 754 Gulu Municipal Council 388,218, 1 16 388,218,1 16 \-\ 75s Jinia Municipal Council 18,000,000 18,OO0,OOO Kabale Municipal ..' 257 Council 6,000,000 6,O00,000 770 Kasese Municipal 58,424,397 58,824,397 43 \-eTr1 k- )<, Council lganga Municipal Council 87,000,000 87,000,000 Busia Municipal 776 Council 3,000,000 3,000,000 Rukungiri Municipal 778 Council 15,000,000 15,000,000 Mityana Municipal 743 Council 36,000,000 36,000,000 Koboko Municipa.l 785 Council 24,000,000 24,OO0,O00 Kamuli Municipal 749 Council 9,360,000 9,360,000 Kapchorwa Municipal 790 Council 1,O 10.864,000 1,010,864,000 Njeru Municipal 792 Council 1 1,760,000 I I,760,000 793 Apac Municipal Council 6,480,000 6,480,000 Nebbi Municipal 794 Council 27,OO0,000 27,000,000 Kotido Municipal 797 Council 21,000,000 21,000,000 Sut-Total - Local GovernmontE 6.O51.603.259 6,O51,603.259 TOTAL. 19.744,991,635 25,442.564,+90 45,627.556,125 -N 44 7.O CONCLUSION The Committee requests the House as follows; 1. That a sum of Shs 378,3o4,967,341 as recurrent supplementary expenditure be supplied by vote as reflected in tables 2, 6, 7, and 8. 2. T}lat a sum of Shs 867 ,l47,578r?Lg as development supplementary expenditure be supplied by vote as reflected in tables 2, 6, 7 , atd 8. 3. That the House adopts the report of the committee. The loble below provides o summory of sums lo be supplied: Schedule 2- Schedule 2- Schedule 2- Schedule 1 Authorized Prior Addenda TOTAL Recurrent 1 36,51 1 ,481 ,10'l 179,730,352,105 42,278.142,500 19,784,991 ,635 378,304,967,341 Development 260,676,952,589 145,535,303,226 435.092.757,9'13 25,842,564,490 867,147,578,218 477.370.900.413 45,627 ,'l,245,452,545,559 Rt. Hon. Speaker, I beg to move (' 45 APPENDIX I: SUPPLEMENTARY SCHEDULE I, FY2OI8/19 (AS LAID) Vote Descrlptlotr Recurent DeveloDmcnt Total oo1 Office of the President 16,OO0,000,000 16.OO0,OOO,000 002 State House 79,1O5,11,4,512 5,700,000,000 84,805,1 14,512 003 Office of the Prime Minister 467 ,L56,OOO 467,156,000 006 Ministry of Foreisn Affairs 1,000,000,000 1,OO0.OO0,000 Ministry of Finance, Planning & 008 Economic Dev. 1,380,000,000 27 ,7 t7 ,123,928 29,O97,123,928 oo9 Ministry of Intemal Affairs 2.000.000.oo0 2,OO0,OO0,000 o13 Ministry of Education and Sports 14,936,457,tO2 t4,936,457,702 o14 Ministry of Hea-lth 3,564,787,550 3 ,564 ,7 87 ,550 Ministry of Trade, Industry and ol5 Cooperatives s,000,000,000 5,000,000,000 Ministry of Energ/ and Mineral o17 Development 62.768.935.O44 62,768,935,O44 119 Usanda Resistration Services Bureau 385,O00,000 710,000,000 i,095,000,000 Ministry of Science, Technologr and Innovation 3,547,a5t,706 o23 3.547.851.706 Education Serice Commission 1,200,000,000 1,200,000,000 136 Makerere University 5,577,982,956 5,577,9A2,956 141 URA i 7,356,870,159 930,000,000 18,286,870,159 744 Uganda Police Force 39 .704 .6 t4 ,47 5 39,704,614,475 310 Uganda Investment Authority 51.O.122.096 5to,),22,096 311 Uganda National Oil Company (UNOC) 14,720,000,000 14,720,000,000 372 Petroleum Authority of Ueanda 16,706,358,883 16.706,358.883 Sub-Total r58.86E.351,260 162.120,O23.551 320,988,374,811 Misslons Abroad Uganda High Commission in United 202 Kingdom, London 606,178, 152 249,527 ,6A0 855,705,832 Uganda High Commission in Carada, 203 Ottawa 241,625,OOO 24r,625,OOO Uganda High Commission in India, 204 New Delhi 394,000,000 394,000,000 Uganda High Commission in ES/pt, 205 Cairo 270,800,ooo 270,800,000 Uganda High Commission in Kenya, 206 Nairobi 204,200,ooo 204,200,000 Uganda High Commission in 207 Tatzanta, Dar es Salaam s82,000,o00 582,000,000 Uganda High Commission in South 209 Africa, Pretoria s24,6r5,000 524,615,O00 2to Ugalda Embassy in Washington 504,548,000 504,548,O00 Uganda Embassy in Ethiopia, Addis 2r1 Ababa 87,851,300 t 87,851,30o Uganda Embassy in Rwanda, Kigali 376,976,67 t 376,976,671 Uganda Embassy in Switzerland, 214 Geneva 392,434,a L2 392,434,412 217 Uganda Embassy in Saudi Arabia, 655.687.292 655,64t,292 46 t\ \t+-J Riyadh Uganda Embassy in Denmark, 2r8 Copenhagen 897,373,400 897,373,400 Uganda Embassy in Belgium, 219 Brussels 7 a2,7 65,636 7a2,7 65,636 227 Usanda Embassv in DRC, Kinshasa 363,59 1,623 363,591,623 Uganda Embassy in Sudan, Khartoum 398,420,000 398,420,000 224 Uganda Embassv in France, Paris 683,920,000 683,920,000 225 U*anda Embassy in Germary, Berlin 499,481,000 499,481,000 226 Uganda Embassy in Teheran 49a,a6 t,240 498,861,240 227 Usanda Embassv in Moscow 569,121,OOO 569, r2 1,000 Uganda Embassv in Canbeffa 574,87 4,Ol3 574,874,O 13 230 U*anda Embassy in Abu Dhabi 190,000,000 190.000.000 23r U*anda Embassy in Buiumbura 388,920,000 388,920,000 Mission in Ankara 48 1,3 19,700 481,319,700 234 Mission in Mogadishu 400,000,000 400,o00,o00 235 Mission in Kuala Lumpur 33 1, 106,800 331,106,800 236 Mission in Mombasa 476,934,490 476,934,490 Mission in Algiers 724,O44,244 724,O48,248 200 Sub-Total -Mlscloffi Abroad 13,'rO1,651;377 . 249.527.640 13.351.r79.Os7 Locel Governmenta 50r Adjumani District 150,OOO,000 150,000,000 512 Kabale District 144,384,000 144,384,000 513 Kabarole District 128,000,000 128,000,000 Masindi District t,1"22,332,063 1,722,332,063 539 Moyo District r12,332,450 112,332,450 546 Ntungamo District 812.270.895 412,270,495 553 Soroti District 55,758,000 55,758,000 555 Wakiso District 11,935,198,180 165,604,548 t2,700,802,728 560 Isingiro District 617,t31,O24 6 1 7, 13 1,028 606 Nwova District 806,250,966 806,2 50,966 618 Pakwach District 200,000,000 200,000,000 62t Kvotera District 7a6,297 ,200 786,297,200 625 Kasanda District 12,457,437 r2,857,431 751 Arua Municipal Council 3 ,220 ,424 ,96C 7.200.426,t24 10.421.251,O88 752 Entebbe Municipal Council 3,495,156,486 3,495,156,486 Fort-Portal Municipal Council 728,000,000 3,649,7 45,524 +,J t t.t+5,J2+ 754 Gulu Municipal Council 4.849,829.100 19,245,579,440 24.095.408,940 75s Jinia Municipal Council 1 ,327 ,656 ,123 7,740.21,O,874 9 ,067 ,866 ,997 757 Kabale Municipal Council 2,370.47 4,O42 2.370.47 4,O42 758 Lira Municipal Council 8,866,338,579 8,866,338,579 759 Masaka Municipal Council 1,965,281,700 6 ,420 ,906 ,O49 8,386,147,749 760 Mbale Municipal Council 125,000,000 6,796,613,663 6,921,613,663 761 Mbarara Municipal Council 2.495,585,453 74,332,7 t3,222 16 ,828 ,298 ,67 5 762 Moroto Municipal Coqncil 7,t29,7W,402 1.729.779.402 47 ,'' /'7 763 Soroti Municipal Council 1,587,666,550 1,587,666,5s0 764 Tororo Municipal Council 4,87 6,t96,4O7 4,876,196.807 771 Hoima Municipal Council 10.595,194,152 1O.595,194.152 777 Bushenyi- Ishaka Municipal Council 50,603,OOO 50,603,000 781 Kira Municipal Council 1,544,138,000 321,885,000 1,866,023,000 795 Buqiri Municipal Council 64,081,000 64,081,000 500 sub-Totd - Local Goverlrmcnt8 33.253.811,54E " 98.794.890,906 132,048.702.455 TOTAL - 20s,223,414,L46 261,164,442,L37 466,388,256,323 APPENDIX 2: SUPPLEMENTARY SCHEDULE 2, Fy2018/r9 (AUTHORTZED WTTHTN 3%) AS LAID Vote Descrlptlon Recurrent DevelopmeEt Totel o02 State House 64,518,400,000 2,367,400,000 66,885,800.000 006 Ministry of Foreim Affairs 1 1,051,502.675 1 1,05 1,502,675 o11 Ministry of l,ocal Government 4.431.735.000 24,860,250,000 29,29 r,98s,000 Ministry of Lands, Housing & o12 Urban Deve lopment 13,000,000,000 6,to6,426,577 t9, to6,426.577 Ministry of Education and or3 Sports 1,120.000,ooo L,120,000,000 014 Ministry of Hea-lth 4,O36,513,334 4,036,513,334 Ministry of Trade, Industry and 015 Coop€ratives 2,949,722,688 2,949,722,6aA Ministry of Works and 016 Transport 500,000,000 6,000,000,o00 6,s00,000,000 Ministry of Enerry and Mineral ot7 Development 32,646,174,854 32,646,t74,854 Ministry of Water afid 019 Environment 7,627,000,000 7 ,627 ,OOO,OOO Ministry of East African 02t Community Affairs 6,347,654,168 6,347,654,168 111 Busitema Universitv | ,7 48 ,829 ,222 1,7 4a,829 ,222 116 Nationa-l Medica-l Store s 20,000,000,000 20,000,o00,o00 National Citizenship and 720 ImmiEration Control 60,212,776,512 60,212,776,5t2 Muni Universitv 707,838,066 707 838 066 136 Makerere University 20,066,7 4a 368 20 ,066 ,7 48 .368 t37 Mba-rara Universitv 3,395,573,925 776,477,OOO 4,t72,O50,925 Ma-kerere University Business 138 School 2,954,O94,159 2,954,094,159 Kyarnboeo University 4,394,O77,569 4,398,O77,569 140 URanda Management Institute 867,296,104 867,296,104 144 Ugalda Police Force 60,o00,000,000 60,000,000,000 145 Ugalda Prisons 16.914,OOO,000 16,914,OOO,000 r49 Gulu University 3.223,47 4,57 3 ,7,ZZJ,+t+.CtJ 301 Lira University 819,559,028 76,100-000 895,659,O28 -5[- 307 Kabale Universitv 2.051.551.218 800,513,627 2,852,064,845 308 Soroti University 2,734,018,030 3,114,447,494 5,852,465.924 I gub-Total . 242.892.851.305 ' 149,635.303,226 392.428.rs4.531 Local Governmenta 501 Adiumani District 208,41 1,830 457 ,761,546 666,173,376 503 Arua District 14,27 3,824 t4,27 3,824 505 Bundibusyo District 25,306,692 7,800,000 33,106,692 514 Kaberarnaido District t5,t77,416 t5,1,77,416 Kal'unga District 66,000,000 66,000,000 528 Kotido District 9,445,522 32,518,328 41,963,850 529 Kumi District 161,101,000 161,10r,000 535 Mayuge District 73,207,194 73,207,194 Mbarara District 107,702,r42 to7,702,182 539 Moyo District 400,2a7 ,ooo 36,160,000 436,447,OOO 544 Nakasongola District 865,921,000 865,92 I,000 545 Nebbi District 45,847,168 45,847,168 556 Yumbe District 134,3 10, O0 7 134,310,007 563 Koboko District 30,o00,000 30,000,000 571 Budaka District 55,000,ooo 55,000,000 Abim District 87,433,150 87,433,150 584 Kyegegwa District 257,64a,OOO 257,648,000 552 I(iryandongo District 190,O77,637 62,976,520 253,054, r57 603 Ngora District 30,100,000 30,100,000 622 Bunyansabu District 425,000,000 425,000,000 759 Masaka Municipal Council 1,965,282,000 2,546,261,OOO 4,511,543,000 761 Mbarara Municipal Council 546,730,757 546,730,157 770 Kasese Municipal Council 130,680,000 95,820,000 226,500,000 772 Mukono Municipal Council 188,431,000 188,43 1,000 Iganga Municipal Council 606,2r8,O00 606,2 r8,000 775 Ntungamo Municipal Council 3t,647,615 31,647,615 776 Busia Municipal Council 165,824,000 165,824,000 Makindye-Ssabagabo 7ao Municipal Council I55,200,O00 155,200,000 742 Kisoro Municipal Council 870,398,O00 870,398,OOO Kumi Municipal Council 46,820,853 46,820,853 SuETotal - Local 500 Govarnmenta 6,255,963,259 11,148,778.641 TOTAL 249.148,814,564 r54,428,114,608 403,576,933.172 st-l w_1 APPENDIX3: SUPPLEMENTARY EXPENDITURE 2, FY2O18/19 (PRIOR APPROVAL) AS LAID Vote Descrlptlon Recunent Development Total 001 Office of the President 3,096, 131,sO I 3,096,131,501 oo2 State House i0.303.420.ooo 10.303,420,000 004 Ministry of Defence 380,000,000,000 380,000,ooo,oo0 Ministry of Justice and 007 Constitutional Affairs 5.000.000.oo0 5,000,000,000 Ministry of Finance, Planning & 008 Economic Dev. 1.093,000,000 1,093,000,000 Ministry of Agriculture, Animal & 010 Fisheries 3,000,000,000 3,000,000,000 Ministry of Lands, Housing & o72 Urban Development 3,000,000,000 3,000,000,000 013 Ministrv of Education artd Sports 1,368,535,928 1,368,535,928 014 Ministry of Hea-lth 10.896,337,913 10,896,337.913 016 Ministry of Works and Transport 1,500,000,000 1.500.000,000 Ministry of Energr artd Mineral ol7 Development 28,000,000,000 28,000,000,000 Ministry of Gender, Labour arld 018 Social Development 3,400,000,000 3,400.000.000 101 .IUDICIARY 1,946,620,876 | ,946 ,620 ,47 6 Uganda Registration Services 119 Bureau r.429.166,664 1,429,166,664 145 Uganda Prisons 920,026,O28 920,026,028 1q? NAADS Secretariat 10,000,000,000 10,000.000.oo0 Sub- Total 31.660.48O;997. ' 433.292,757,913 464.953.238.91O Local Govcrnments 509 Hoima District 507,283,188 507,283,188 5t7 Kamuli District 764,409,814 764,409,4t4 .,oo Ka.takwi District 446,363,145 446,363,t45 Lira District 199,0 16,630 199,016,630 s36 Mbale District 470,837 ,537 470,837,537 544 Nakasongola District 324,646,7 46 324,646,746 552 Sironko District 38.563,200 38,563,200 553 Soroti District 225,463,37 0 225,463,370 560 Isingto District 301,680,756 301,680,756 s62 Kiruhura District 236,9t4,351 236,9 14,35 1 Koboko District 235,410,409 235,410,409 567 Bukwo District 37 0, t39,226 37 0,139 ,226 571 Budaka District roo,349,272 100,349,2 L2 572 Oyam District I47,843,360 147,843,360 J/J Abim District 246.245,471 246,245,47 | 57a Bukedea District 509,682,686 509,682,686 590 Buvuma District 262 080 656 262,O4O,656 50 skl 4/'; 612 Kween District 422 ,79 1. ,244 422,79r,284 616 Rubanda District 758,852,958 758,852,9s8 625 Kasanda District 1,565,344,092 1,565,344,O92 752 Entebbe Municipai Council 23,I66,900 23,166,900 754 Gulu Municipal Council 4s5,237,008 455,237,008 761 Mbarara Municipal Council 224,818,800 224,818,800 762 Moroto Municipa-l Council 144,435,796 t44,435,796 764 Tororo Municipal Council 25,224,672 25,224,672 77t Hoima Municipal Council 107,067,188 107,067,188 Masindi Municipal Council 149,07 t,744 149,07 I,7 44 Ntungamo Municipal Council 56,897,879 56,897 ,a79 776 Busia Municipal Council 112,864,000 112,864,000 78t Kira Municipal Council 224,818,800 224,8 18,800 782 ] Kisoro Municipal Council 36,304,08 L 36,304,081 783 Mitvana Municipal Council 224,818,800 224,818,800 786 Mubende Municipal Council 24,517,600 24,517,600 789 Kamuli Municipal Council r82,725,800 182,725,800 795 Bugiri Municipal Council 35,242,57 0 35,242,570 797 Kotido Municipal Council 272,524,068 272,524,068 500 Sub-Total - Local Governments 13,239,519.OOS 13,239,519,003 TOTAL . 44,900.OOO,OOO 433,292,757,913 478,192,7 57.913 $$ -t (./ APPENDIX 4: ADDENDA TO SUPPLEMENTARY SCHEDULE 2, FY2OI8/I9 (AS LAID) Vote Descdptlon Recurrent Development Totd 001 Office of the President 3.000,ooo,000 3,O00,000,000 oo2 State House 2,856,388,376 2,8s6,388,376 004 Ministrv of Defence 5,454,000,000 5.454.000.000 Kampala Capital City 122 Authority 25 ,842 ,564 ,490 25,842,564,490 310 Uqanda lnvestment Authority 2.423.000.000 2,423.000.000 13,733,388,376 25.8,t2.564.490 ' .575.952.866 Local Governments 501 Adiumani District 7,O80,000 7,080,oo0 502 Apac District 97,800,000 97,800,000 503 Arua District 92,040,000 92,040,000 507 Busia District 960,000 960,000 508 Gulu District 28,920,OOO 28,920,000 511 Jinia District 3,120,000 3,120,OOO 512 Kabale District 235,926,696 235,926,696 514 Kaberamaido District 5,040,000 5,040,000 515 Kalangala District 3,OOO,000 3,000,oo0 519 Kanungu District 1,920,000 1,920,OOO 520 Kapchorwa District 75,000,000 75,000,000 521 Kasese District 50,160,000 50,160,000 1,OO Katakwi District 39,340,156 39,340,156 524 Kibaale District 123,t20,ooo 123,120,000 526 Kisoro District 1,800,000 1,800,000 524 Kotido District 4,920,000 4,920,OOO Luwero District I 1,650,788 1 1,650,788 533 Masaka District 6,840,000 6,840,000 Ma!'use District 240,OOO 240,000 536 Mbale District 4,080,oo0 4,080,000 537 Mbarara District 19,920,OO0 19,920,000 538 Moroto District 479,053,855 479,053,855 Movo District 840,O00 840,000 540 Mpisi District 11.9,7 32,912 t19,732,9t2 541 Mubende District 152,840,000 r 52,840,000 543 Nakapiripiriti District 9,000,000 9,000,000 544 Nakasonsola District 395,981,428 395,98 1,428 545 Nebbi District 45,447,164 45,447,764 546 Ntunqamo District 1,162.701.O80 1,162,701,080 +*k1 52 548 Pallisa District 6,360,000 6,360,000 549 Rakai District 7.800.000 7,800,000 550 Rukungiri District 47 ,49t,663 47 ,491,663 552 Sironko District 2,280,000 2,280,000 Soroti District 322,200,OOO 322,200,OOO Wakiso District 13,320,000 13,320,000 5s6 Yumbe District 9,000,000 9,000,000 558 Ibanda District 25,920,OOO 25,920,000 560 Isingiro District 13,920,000 13,920,000 565 Amuria District 56,880,000 56,880,000 566 Manafwa Distdct 41,640,000 41,640,000 568 Mitvana District 9,360,000 9,360,000 572 Ovam District I9,440,000 19,440,O00 575 Dokolo District 3,000,000 3,000,000 576 Buliisa District 360,000 360,000 578 Bukedea District 480,000 480,OOO 579 Bududa District I4,400,O00 14,400,000 5a2 Buikwe District 120,000 120,OO0 584 Kveseswa District 14,880,000 14,880,000 585 Lamwo District 5,880,000 5,880,O00 590 Bumma District 3,840,OO0 3,840,000 591 Gomba District 12,840,000 12,840,000 59s Luuka District 14,160,000 14,160,000 NamayinRo District 1,920,000 1,920,O00 603 Ngora District 30,100,000 30,100,000 609 Sheema District 96,000,000 96,000,000 614 Kakumiro District 19,O80,000 19,080,000 ott Namisindwa District 5 5,560,000 ss,560,000 618 Pakwach District 8,880,OOO 8,880,000 620 Rukiga District 8,400,000 8,400,000 t52 Entebbe Municipal Council 284,7 I |,OOO 284,7 7l,OOO 754 Gulu Municipal Council 388,218,116 388,2 18, 1 16 755 Jinja MunicipaL Council 18,000,ooo 18,000,000 Kabale Municipal Council 6,000,000 6,000,000 770 Kasese Municipal Council 58,824,397 58,824,397 773 Iganga Municipal Council 87,000,000 87,OOO,O00 776 Busia Municipal Council 3,000,000 3,000,000 778 Rukunsiri Municipal Council 15,000.000 15,000,oo0 783 Mityana Municipal Council 36,000,o00 36,000,ooo Koboko Municipal Council 24,000,000 24,000,ooo 749 Kamuli Municipal Council 9,360,000 9,360,OO0 790 Kapchorwa Municipal Council 1,O 10,864,000 1,O 10,864,000 792 Njeru Municipal Council 11,760,000 1 1,760,000 793 Apac Municipa-l Council 6,480,OO0 6,480,000 794 Nebbi Municipal Council 27,000,000 ( 27,OO0,000 53 sut 797 Kotido Municipal Council 21,000,000 21,000,000 Sub-Total - Local GovGrIDents 6.O51.603.259 TOTAL. 19.784.991,635 25.A42,564.490 45,627,55,6,125 APPENDIX 5: TOTAL SUPPLEMENTARY EXPENDITURE, FY2OI8i2O (Inclusive of Schedule l,2,Prior, Addenda) Vote Descrlptlon Recurent DcveloDmcrt Total oo1 office of the President 22,096,131,501 22,096,131,501 oo2 State House 146,479,902,888 18,370,820,OOO 164,8s0,722,888 003 Oflice of the Prime Minister 467,156,000 467,156,000 004 Ministrv of Defence 5,454,000,OO0 380,000,000,000 385,454,O00,000 006 Ministry of Forcign Affairs 12,O51,,502,675 12,051,502,675 Ministry of Justice and oo7 Constitutional Affairs 5.OO0.OOO,O00 5,O00.000,000 Ministry of Finance, Planning & 008 Economic Dev. 1,380,000,000 28,8r0,123,928 30,190,123,928 009 Ministry of Internal Affairs 2,000,000,000 2,000,000,000 Ministry of A8riculture, Animal & 010 Fisheries 3.O00.ooo.000 3,000,ooo,ooo 011 Ministry of Local Government 4,431,735,O00 24,860,250,000 29,29 1,985,000 Ministry of Lands, Housing & o12 Urban Development 13,000,000,000 9,106,426,5t7 22, 106,426,517 ol3 Ministry of Education and Sports 1,368,535.928 16,056,457,102 t7 ,424 .993 .O30 o14 Ministry of Hea-lth 18,497,63A,797 t4,497,638,797 Ministry of Trade, Industry and 0r5 Co operative s 7 ,949 ,7 22 ,648 7 ,949,722,688 o16 Ministry of Works ard Transport 2,000,000,000 6,000,oo0,ooo 8,OOO,000,000 Ministry of Enerry ald Mineral o17 Development 123,415,109,898 123,415,109,898 Ministry oI Gender, Labour and 018 Social Development 3,400,000,000 3,400,000,000 Ministry of Water and 019 Environment 7 ,627 ,OOO,OOO 7,627,OOO,OOO Ministry of East African 021 communitv A.ffairs 6.347.654,168 6,347 ,654,168 . 101 .,UDICIARY 1 ,946 ,620 ,87 6 | ,946 ,620 ,87 6 1',] l Busitema Universitv 1,7 4A,a29 ,222 r ,7 4a ,a29 ,222 116 Nationa-l Medica-l Stores 20.000,ooo.000 20,000,000,000 Uganda Registration Services 119 Bureau 1,474,t66,664 710,OO0,OOO 2,524,t66,664 National Citizenship and 120 Immigration Control 60.212.776.572 60,212,776,512 1ao Kampala Capital City Authority 25 ,842 ,564 ,490 25,A42,564,490 127 Muni University 707,A38,066 707,838,066 130 TREASURY SERVICES 2,423,000,000 2.423,OOO.O00 Education Service Commission 1,200,000,000 1.200,ooo.o00 136 Makerere University 20,066,748,368 5,577,982 6 25,644,731.324 54 '+$-^ 137 Mbarara University 3,395,573,925 776,477,OOO 4,172,O50,925 Makerere University Business 138 SchooI 2.954.094, 159 2,954,O94,159 139 Kyambogo Universitv 4,398,O77 ,569 4,398,O77,569 140 UAaIda Management Institute 867,296,104 867,296,10+ t4t URA 17,356,870,159 930,000,o00 18,286,870,159 144 Usanda Police Force 99,704,614,475 99,704,614,475 I45 Usanda Prisons t7 ,834,026,024 77 ,434 ,026 ,O28 149 Gulu University 3 ,223 ,47 4 ,57 3 3,223,47 4,57 3 NAADS Secretariat IO,OOO,000,000 10,000,000,000 301 Lira University 819,559,028 76,100,000 895,659,028 307 Kabale University 2,051,551,218 800,513,627 2,852.064.845 308 Soroti University 2,734,018,030 3,114,447,494 5 ,452 ,465 ,924 310 Usanda lnvestment Authority 5 r 0, l2 2,096 510,122,096 Uganda National Oil Company 311 (UNOC] 14,720,000,000 14,720,O00,000 Petroleum Authoritv of Usanda 16,706,358,883 16.706.358.883 Sub-Total :, 4.8:60?,220.292 770.790.6+9,180 ' L,2l+;397,869,+12 Mlsslons Abroad Uganda High Commission in 202 United Kinsdom, t ondon 606,178,152 249,527 ,6aO 8 5 5,705,832 Uganda High Commission in 203 Canada, Ottawa 24 L,625,OOO 24 7,625,OO0 Uganda High Commission in India, New Delhi 394,000,o00 394,000,000 Uganda High Commission in 205 Esypt, Cairo 270,800,000 270,800,ooo Uganda High Commission in 206 Kenya, Nairobi 204,200,000 204,200,000 Uganda High Commission in 207 Tanzania, Dar es Salaam 582,000,o00 582,000,ooo Uganda High Commission in 209 South Africa, Pretoria 524,615,000 524,615,000 270 Uganda Embassy in Washington 504,548,000 504,548,000 Uganda Embassy in Ethiopia, 27! Addis Ababa 87.851,300 87,85 1,300 Uganda Emba.ssy in Rwanda, Kisali 376,976,671 376,976,67 t Uganda Embassy in Switzerlald, 214 Geneva 39 2,438,8 r 2 392,438,812 Uganda Embassy in Saudi 2t7 Arabia, Riyadh 655,64r,292 655,64t,292 Uganda Embassy in Denmark, 218 Copenhagen 497,373,400 497,373,400 Uganda Embassy in Belgium, 2t9 Brussels 742,765,636 742,765,636 Uganda Embassy in DRC, 227 Kinshasa 363,59 1,623 363,59 1,623 Uganda Embassy in Sudan, 223 Khartoum 398,420,000 398,420,000 224 Uganda Embassy in France. Paris 683,920,000 683,920,000 225 Ugaafla Embassy in Germany, 499,481,O00 499,481,000 55 +fi] Berlin 226 U da Embas in Teheran 494 a61 ,240 498,861,240 227 Urarda Embassy in Moscow 569,121,000 569,121,000 224 Ueanda Embassy in Canberra 574,87 4,Ot3 574,87 4,O73 URanda Embassy in Atru Dhabi 190,000,000 190,000,000 23t Uganda Embassv in Bujumbura 388,920,000 388,920,000 Mission in Ankara 481,3 19,700 48 1 ,3 19,7 00 234 Mission in Mogadishu 400,000,000 400,000,000 IJJ Mission in Kuala Lumpur 33 1, 106,800 331,106,800 Mission in Mombasa 476,934,490 476,934,490 Mission in Algiers 724,O44,244 724,O44,244 20,0 sub-Total-Mlsslons Abioed 13,101,651,377 249,t27,6aO 13.851.179.0s? Local Governmentg 501 Adiumani District 365,491,830 457,761,546 423,253,376 Apac District 97,800,000 97,800,000 503 Arua District 92,040,000 14,27 3,824 r 06,3 13,82 4 505 Bundibugyo District 25,306,692 7,800,000 33, 106,69 2 507 Busia District 960,000 960,000 508 Gulu District 2A,920,OOO 28,9 2 0,000 509 Hoima. District 507,283,188 507,283,I88 511 Jinia District 3,120,OO0 3,120,O00 Kabale District 380,310,696 380,31O,696 513 Kabarole District 128,000,000 128,000,000 514 Kaberamaido District 20,2t7,476 20,2t7,4t6 515 Kalangala District 3,000,000 3,000,000 5t7 Kamuli District 764,409,414 764,409,874 519 Kallungu District 1,920,000 r,920,000 520 Kapchorwa District 75,OO0,000 75,000,000 521 Kasese District 50,160,000 50,160,000 522 Katakwi District 485,703,301 48 5,70 3,3 0 1 523 Ka!'lrnga District 66,000,000 66,000,000 524 Kibaale District 123,120,000 123,120,000 526 Kisoro District 1,800,oo0 1,800,000 528 Kotido District 1,4,365,522 32,5 18,3 28 46,883,850 529 Kumi District I6I,101,000 161,101,000 531 Lira District 199,016,630 199,016,630 532 Luwero District r 1,650,788 1 1.650,788 Masaka District 6,840,OO0 6,840,O00 534 Masindi District r.122,332,063 1 .t22 ,332 ,063 Mal.use District 73,447,194 73,447,t94 536 Mbale District 474,9t7,537 47 4,9 t7 ,537 Mbarara District 127 ,622,t42 127 ,622,182 538 Moroto District 479,053,855 479,053,855 Moyo District 5I3,459,450 36,160,000 549,619,450 540 MpiRi District t19,732,912 179,7 32,9 t2 541 Mubende District r52,840,000 152,840,000 543 Nakapiripiriti District 9,OOO,000 9,OOO,O00 544 Na-kasonsola District 1.590,589.174 1,590,589, 174 545 Nebbi District 9t,694,336 9I,694,336 546 Ntunqamo District t,97 4,97 1,97 5 I,974,97 1,97 5 548 Pallisa District 6,360,000 6,360,000 549 Rakai District 7,800,000 7,800.000 550 Rukungiri District 47,49t,663 47,491,663 Sironko District 40,843,200 40,843,200 553 Soroti District 603,421,370 603,421,370 555 Wakiso District 1 1,948,518, 180 165,604,548 12,114,122,728 5s6 Yumbe District 9,000,000 134,310,007 143,310,007 558 Ibanda District 25.920.OOO 25,920,000 560 Isinsiro District 932,73r,784 932,73t,784 562 Kiruhura District 236,9t4,351 236,914,351 563 Koboko District 235,410,409 30,000,000 265,410,409 565 Amuria District 56.880,000 56,880,O00 566 Manafwa District 41,640,000 41,640,000 567 Bukwo District 37 0,739 ,226 370,139,226 568 Mitvana District 9,360,OOO 9,360,000 577 Budaka District t55,349,212 155,349,212 572 Ovarn District 167 ,283,360 167 ,243,360 Abim District 37 3,7 t8,621 373,718,62t Dokolo District 3,000,000 3,000,000 576 Buliisa District 360,000 360,000 574 Bukedea District 510,162,686 510,162,686 579 Bududa District 14,400,000 14,400,000 582 Buikwe Distict 120,000 I20,000 584 Kvegegwa District 14,880,000 257,648,000 272,524,OOO 585 l,amwo District 5,880,000 5,880,000 590 Bu!.uma District 265,920,656 265,920,656 591 Gomba District 12,840,000 i2,840,000 s92 Kiryarldonso District 398,862,041 62,976,520 461,838,561 593 Luuka District 14,160,000 14,160,000 594 Namayingo District 365,288,603 365,288,603 596 Serere District 664,469,944 664,469,984 5S9 Lwengo District 92,656,600 92,656,600 603 Nsora District 396,069,094 396,069,094 605 Kibuku District 9 t,202,9 t5 91,202,915 606 Nwoya District 1.440.586.510 1,440,586,510 607 Kole District 96,607 ,950 96,607 ,950 609 Sheema District 96,000,o00 96,O00,000 611 Asaso Disffict 270,490,1,t1 270,490,117 6t2 Kween District 422,791,244 422,79t,244 614 Ka-l(umiro District 19,080,O00 19,080,000 616 Rubanda District 758,852,958 758,8s2,958 617 Namisindwa District 55,560,000 55,560,000 618 Pakwach District 208,880,000 208,880,000 620 R District 8,400,ooo 8,4 00,000 62r K tera District 746,297 ,200 786,297 ,200 622 Bun bu District 425,000,000 425,OOO,000 Ka.saIIda District 1,s78,201,523 7 ,57I,201,523 751 Arua Munici Council 3 ,220,824 ,960 7,200,426,728 10,421,25 I,088 752 Entebbe Munici Council 307 ,477 ,900 3,495,156,486 3,803,034,386 753 Fort-Portat Municipal Council 728,000,000 3,649,7 45,524 4,377,745,524 754 Gulu Municipal Council 5 ,693 ,2a4 ,224 1_9 ,245,579 ,840 24 ,938 ,86+ ,064 755 .Iin a Munici Council 1,345,6s6,123 7,740,2rc,a74 9,085,866,997 757 Kabale Municipal Council 6,000,000 2.37 0,a7 4,O42 2 ,37 6 ,87 4 ,O82 758 Lira Municipal Council 8,866,338,579 8,866,338,579 Masaka Municipal Council 3,930,563,700 8,967,t67 ,O49 12,897,730,749 760 Mbale Munici al Council 125,000,ooo 6,796,613,663 6,921,613,663 767 Mbarara Munici al Council 2,720,404,253 L4,a79,443,379 t7 ,599,847 ,632 762 Moroto Municipal Council 144,435,796 | .t29 ,7 7 9 ,402 t,274,215,r98 763 Soroti Municipal Council 1,587,666,550 1,587,666,s50 764 Tororo Municipal Council 25,224,67 2 4,a76,196,807 4,907,42t,479 770 Kasese Municipal Council 189,504,397 95,820,000 2a5,324,397 77r Hoima Municipal Council 107,067,188 10,595, 194,152 to,702,261,340 772 Mukono Municipal Council 188,431,000 188,431,000 lgansa Municipal Council 693,218,000 693,218,000 Masindi Munici Council t49,O7 I,744 149,O7 t,7 44 775 Ntungamo Municipal Council 88,545,494 88,545,494 776 Busia Municipal Council 115,864,O00 165,824,OOO 281,688,000 Bushenyi- Ishaka Municipal Council 50,603,000 50,603,O00 778 Rukuneiri Municipal Council I5,000,000 15,000,000 Makindye-Ssabagabo Municipal 780 Council 155,200,000 155,200,000 7Ar Kira Municipal Council 1,768,956,800 321,885,000 2,090,841,800 782 Kisoro Municipal Council 906,702,081 906,702,O41 783 Mityana Municipal Council 260,818,800 260,818,800 745 Koboko Municipal Council 24,000,000 24,000,000 746 Mubende Municipal Council 28,517,600 28,517,600 787 Kumi Municipal Council 46,820,853 46,820,853 749 Kamuli Municipal Council 192,085,800 192.085,800 790 Kapchorwa Municipal Council 1,010,864,000 1.010.864,000 792 Njeru Municipal Council 11,760,000 1 1,760,O00 793 Apac Municipa-l Council 6,480,000 6,480,000 794 Nebbi Municipal Council 27,000,000 27,000,000 795 Bugiri Municipal Council 99,323,570 99,323,570 293,524,064 797 Kotido Munici Council 293,524,064 162,488,603,358 500 Governmatta 58.800.897,O70 103,687,706,288 51 27 TOTAL . 515,509,768,679 a74,72J,443,148 I 390 237 ,-/ 59 MEMBERS OF THE BI'DGET COMMITTEE WHO SIGNED THE ON THE SUPPLIMENTARY E]IPENDITI'RE SCHEDITLT NO,l AND NO. 2 FOR IT 2018 19 NO NAME I Hon. Lugoloobi Amos (Chairperson) 2 Hon. Opolot t5iagi Patrick (Vice Chairperson) a Hon. Mwesigye Fred rAr (+{& tt "- at LI 4 Hon. Ilukor Charles I 't-/ Hon. Hashim Sulaiman 6 Hon. Lubogo Kenneth 7 Hon. Mutebi David Ronnie 8 Hon. Nankabirwa Ann Maria 9 Hon. Othieno Okoth Richard 10 Hon. Komuhangi Margaret TN 11 Hon. Khainza Justine L2 Hon. Achia Remigio 13 Hon. Asiku Ellv Elias 14 Hon. TUmuramve Genesio l5 Hon. Aleper Aachilla Margaret l6 Hon. Ngabirano Charles t7 Hon. Ogwalg Peter 18 Hon. Nabayiga Idah \ 19 Hon. Musasizi Henry rz>/, 20 Hon- Silwanv Solomon 2t Hon. Kiiza Winfred c, Hon. Atim Ogwal Cecilia zo Hon. Mugume Roland 24 Hon. m Joy 25 Hon. Muwanga Kivumbi 26 Hon. Ntende Robert 27 Hon. Karuhanga Gerald 2A Hon. Bagoole John 29 Hon. Kakoza James 30 Hon. Soyekwa Cheborion Kenneth PARLIAMENT OF UGANDA A MINORIIY REPORT ON SUPPIEMENTARY EXPENDITURE SCHEDUTE 1 AND 2Fy20'.lB/'.1? APRIL 2OI9 I,O INTRODUCTION The Ministry of Finonce, Plonning ond Economic Development loid Supplementory Schedule I ond 2 FYzQlB/19 requesting opprovol for supplementory expenditures. The supplementory expenditure schedules were referred to the Committee on Budget for scrutiny ond subsequent reporting to the House. Pursuont to Rule 202 of lhe Rules of Procedure of the Porlioment of Ugondo, I hereby present o dissenling opinion from the opinion of the mojority of the Commitlee on Budget. The dissenling opinion wos informed by: o) Legol fromeworks of Ugondo porticulorly the Constituiion, Budget Act ond Public Finonce Monogement Act. b) Commiltee interociions with Ministries, Deporlments ond Agencies c) Porliomentory Reports. 2.0 AREAS OF DISSENT I dissented with the mojority of lhe Committee regording supplementory criierio, illegol reollocotions, unspent bolonces, Presidentiol lnitiotive on Bonono Industriol Development (PlBlD), clossified expenditures, Atiok Sugor project, voccines for Foot ond Mouth, Petroleum Authority of Ugondo, Steel ond Tube, unouthorised supplementory expenditures ond unouthorised supplementory requests. 3.0 DISSENTINGOBSERVATIONS 3.1 lllegolReollocolions The Minislry of Finonce, Plonning ond Economic Development indicoted thot UGX 275.89 billion will be sourced through reollocotions or suppression of releoses to portly finonce supplementory expendltures. However the suppressed votes were not indicoted. Section l2(3) of the Budget Act requires thot prior to ony reollocotion of funds, consullotion with the offected mlnistries, deportments, institutions or orgonisotions should be undertoken. However the Mlnistry on oll occosions hos foiled to provide the Commiltee with evidence of consultotions ond consent from miniskies, deportments, inslilutions or orgonisolions thol ore offected by the llocoiio n. This therefore controvenes Section l2(3) of the Budget Act. 1, It hos olso been osserted by government thot Cobinet decisions were undertoken lo permit reollocotions. However these decisions ore token ol sectorol level where no evidence is qdduced os to being informed by outhorisotions from occounting officers of offected minislries, deportmenls, inslitulions or orgonisotions os required by low. Section 45(l)(b) of the Public Finonce Monogement Act demonds thol on Accounting Officer be held responsible for oulhorising ony commitment mode by o vole. Therefore it is essentiol lhot writlen consent is obtoined from occounting officers of every minislry, deportment, institution or orgonisotion thot is forfeiting funds for o glven reollocotion. Furthermore Section 20 of the Public Finonce Monogement Acl stipulotes thot for ony reollocotions to be permissible there must be o tronsfer of functions from one vote 1o onolher vote. However by ihe time of reporting, the Commitiee wos not oble 1o determine whether there were tronsfer of functions from one vote to onother. Recommendofions As required under Seclion 45Ob) of lhe Public Findnce Monagemenl AcI ond Seclion I2(3) ol lhe Eudgel Ac[ authorisolions from occounting officers of yoles offected by rcallocolions should be obfoined and lobled in Porlioment before opprovol ol ony Supplemenlory expendifures for FY20l8/lg. The Minislry of Finonce, Planning ond Economic Developmenf should loble eyidence fhol lhere hos been lronsfer ol funclions from one vole to onolher vote os reguired under Secfion 20 of lhe Public Finonce Monogemenf Acl so os lo crpprove fhe suppressions or reollocolions. 3.2 SupplemenloryCrilerio The Public Finonce Monogement (Amendment) Regulotions 20lB stipulote thot supplementory expenditures ore expecled to be: o) Unovoidoble (on expenditure thot connot be postponed to the next finonciol yeor); ond b) Unforeseeoble (on expenditure thot wos foreseeoble by o vote ol lhe time of preporotion of the budget of the vote or on expenditure thot should be included in the budgel of the vote). On most occosions, the supplementory schedules submitted to Porlloment foil the test for most items ore cleorly foreseeoble ond ovoidqble os sholl be highl ht d 2 shortly. This is on indicotion thot the Minister of Finonce, Plonning ond Economic Development does not undertoke sufficient or comprehensive due diligence of supplemenlory expenditure requests os required under Regulotion lB(2),(5) ond (6) of the Public Finonce Monogemenl Regulotions. Recommendofion Before fhe House mokes o decision on lhe reporl, lhe Minisler responsible for Finonce should under Secfion 78(I) of lhe Public Finonce Manogemenl Act, provide on explanalion to Porlioment why the requirements of Pvblic Finonce Manogemenl Acl porticulorly Regulotion 18 of lhe Public Finonce Monogemenl Regulofions could nol be mef. 3.3 Unspent Bolonces It ls not justifioble to hove foiled to obsorb funds ond insteod request for supplementory to spend on items thot ore not even reloted 1o the initiol purpose. For insionce under development expenditures, the Ministry of Flnonce, Plonning ond Economic Development hos requested for UGX 27.7 billion being externol finoncing unspeni bolonces under FINMAP 3 for FY2017/18 to be spent on construction of new office block ond rent for Afri-Exim Bonk Offices. The bulk of expendllure is towords non-residentiol bulldings (UGX 16.4 billion) ond consultoncy services (UGX 9.1 billion). These expenditures do not solisfy to be unforeseeoble ond unovoidoble. Besides it difficult to oscertoin how the expendilures will conlribule to ochievement of FINMAP 3 objective of strengthening public finonciol monogement ol oll levels of government ond ensuring efficient, effective ond occountoble use of public resources os o bosis for improved service delivery. Fur.lhermore under vorious votes porticulorly municipolities. supplementory requests omounting to UGX 98.3 blllion pertoin unspenl bolonces tor FY20l7l18 under Ugondo Support to Municipol Development Projecl (USMID). However it hos been esioblished thol the opproved budgel in FY20l7l18 for USMID wos only UGX 33.4? billion of which only UGX ll.l8 billion wos spent which ironslotes obsorption of 33%1 . Hence unspent funds omounted to UGX 22.31 billion. lt is therefore surprising thot the supplementory request of UGX 98.3 billion for exceeds UGX 22.31 billion thot wos not spent in FY20l7 /lB. Besides there is no justificotion in spending just becouse there re unspent bolonces. Besides the items being spent on con be budgeted f he next finonciol yeor. I Minislry of tinonce, Plonning qnd Eco 2018. Annuol Budget Performonce Reporl FY 3 Recommendolion Ihe expendilures for which unspenf bolonces hove been soughl should nol be opproved for they ore foreseeoble ond qvoidable. Hence they should be freofed os public loss os provided tor under Regulofion l8(7) of the Public Finonce Monogemenl Regulofions. 3.4 Presidenliol lniliolive on Bonono lnduskiol Developmenl UGX 3.547 billion wos spent os supplementory expenditure by Presidentiol lnitiotive on Bonono lndustriol Development (PlBlD) under the Ministry of Science, Technology ond lnnovotion. lt is criticol to note ihot in the post, Porliomeni hos roised o number of issues regording PIBID thot remoin outstonding to dote. These included expiry of executive order, foilure to tronsfer potent rights to government of Ugondo ond lock of legol operotionol frqmework omong others. Recently, the repori of the Commiltee on Science, Technology qnd lnnovotion on lhe Ministeriol Policy Stotement for FY201 9 /20 contirmed thot the some issues ore still outsto nding. It is lherefore erroneous qnd omounls to undermining Porliomenl for the Minislry of Finonce, Plonning ond Economic Development to outhorise supplementory funds without oddressing pending issues or implementing porliomentory resolulions. This hos now become the norm. For when Porlioment does not oppropriote funds to PlBlD, the Ministry of Finonce, Plonning ond Economic Development outhorises funding through o supplementory thot does not require prior opprovol of Porlioment. ln FY20l7llB ond FY2O1B/19, PIBID received supplementory funding ond reollocotions omounting to UGX 9.03 billion ond UGX 4.74 billion respectivelyz. Recommendolions Porlioment should nol opprove UGX 3.547 billion being supplementary funding to PIBID. The Minislry of Finonce, Plonning ond Economic Developmenf shoud neyer submif ony furlher supplernenfory requesls for PIBID until oll issues roised by Porliam enl ore sofisfocforily oddressed. Under Rule 221 of the Rules of Proced Porlioment of Ugonda (2017), the Commiflee on Rules, Privileges ond Disc should inquire inlo lhe ocfions of , Minisleriol Policy Slotement for Ministry of Science, Tech gy on ln on for FY20l9/20. Pg. l0 the Minister of Finonce, Planning ond Economic Developmenl lhol lonlomount lo conlempt of Porliomen| 3.5 ClossifiedExpendilures The Office of the President, Stole House ond Ministry of Defence requested for supplementory funding for clossified expenditure os indicoted in toble below. ll is criticol 1o note lhot Stote House requested in Schedule l, 2 ond 5 for o lotol of UGX219.72 billion. This is238% over ond obove the initiol opproved budget of UGX 50 billion. Toble l: Su lemento Clossified Ex enditure supp. Schedule 5 Approved 5upp. Supp. Schedule Vole 20181li Schedule'l ReYi3ed 2018/]9 Chonqe 001 0 OfRce of the Presiden't 22,579,950,400 1,000,000,000 0 23,579.950,000 002 stote House 50.400,000.000 79,105,114,512 64,518,400,000 r5,700.000,000 219,723,514,sl2 264% 004 0 Minislry of Defence 640,819,87r,000 0 380,000,000,000 r,020,819,871,000 597. Source: Approved Annuol BudgeiEstimoles FY20l8/19, Supp/emenlo44Schedu/es FY20l8/19 ond OLOP Computotion Although clossified expendilures ore scrutinised in o closed session by clossified expenditure commiflee (os provided under Section 24 of the Public Finonce Monogemenl Act), it is importont to emphosise thot supplementory clossified expenditures ought lo sotisfy the prescribed criterio i.e. unovoidqble ond unforeseeoble (os provided under Seclion 24(5) of the Public Finonce Monogemenl Act ond the Public Finqnce Monogement (Amendment) Regulolions, 2018). However the Committee on Budget did not receive o duly signed report on the single line ilem for clqssified expenditure os required under Seclion 2al3l ot the Public Finonce Monogement Act. Suffice to note is the foct thot the Office of the President requested for UGX 6 billion being seltlement for clossified domestic orreors. However this is misleoding for it hos been noted thot clossified expenditures (output 11ll0l - collection of intelligence, item 2240031 omount to only UGX I billion while the remoining UGX 5 blllion is domestic orreors under output 1 I l I 9 - item 321 605. Domestic orreors hos never been o clossified item under the rt of Accounts. Bosed on this UGX 5 billion should not be opproved os clossifi penditure. ll wos further noted with concern lhot under Schedule 1, Stote House sourced the UGX 6 billion from Donotions (output l6ll06-item 2B2l0l)os funding towords clossified expenditure of UGX 79.1 billion. Such o tronsfer omounts to o vlrement thot requires prior opprovol from the Minister of Finonce, Plonning ond Economic Development os stipuloted under Section 22 of lhe Public Finonce Monogement Act. However no such opprovol wos obtoined. Awore thot it is ot the discrelion of the Speoker, 1o oppoint o Member to the Committee on Clossified Expenditure other thon Committee Choirpersons of Budgel os well os Defence ond lnternol Affoirs os required under Section 24 21 ot Public Finonce Monogement Act, there is need for thol Member to be from the Opposition. This will not compromise notionol security given the foct thol Members undertoke ooth of secrecy rother it will slrengthen role of the Opposition in Porlioment of keeping the governmeni in check. Recommendolions UGX 5 billion being dorneslic offeo,rc fhof is being reporfed os clossified expendilure should nol be approved under supplemenfory reguests of Vote 001 - Offrce of fhe Presidenf. Eesides domesfic ofieors ore foreseeoble ond oyoidoble hence do not sotisfy lhe Public Finonce Manogement (Amendmenl) Regulolions 2018. UGX 6 billion (donofions) be reduced from UGX 79.1 billion (under Schedule t) being clossified expendifure supplemenfory requesl under Sfofe House for il did nol solisfy requirements for o virement os slipuloled in Seclion 22 of the Public Finonce Monogemenl Acl. Hence only UGX 73.1 billion should be considered for opprovol os clossifed expendilure under Sfofe House. Urge lhe Speoker lo oppoinl q Member of fhe Opposilion onto lhe Commiffee on Clossified Expendifure. 3.6 Atiok Sugor Project The Notionol Agriculturol Advisory Services (NAADS) requested for UGX l0 billion being funding for purchosing plonting moteriols for oul growers for Atiok Sugor Foctory. ll should be noted thoi this request is foreseeoble ond ovoidoble hence it controvenes Section 25 of the Public Finonce Monogement Act ond the Public Finonce Monogement (Amendment) Regulolions 201 B. ln regord to Atiok Sugor Project, the following issues should be noted from the response ond correspondences submilt y Horyol lnvestments Holding Compony Limiied, Ugondo Development orotion ond NAADS to the Committees on Budget os well os Tourism, Tro d lndustryi 6 o) Horyol Investments Holding Compony Limited wos incorporoted on llrh April 2013 with shore copitol of UGX 200 billion divided into 20,000,000 shores of UGX 10,000 eoch. b) Government wos first ollotted 4,380,000 shores under Ugondo Developmenl Corporotion in July 2018. Additionol 2,020,000 shores were ollotted in Februory 2018. This omounts 1o o tolol of 6,400,000 shores worth UGX 64 billion. cl lnFY20l7 118, UGX 20 billion wos poid by Ugondo Development Corporotion os portiol contribulion to buying shores in Horyol lnvestmenfs, o compony responsible for the development of Atiok Sugor Foctory. d) On l5m Morch 2017, Horyol lnveslments Holding Compony Limited entered into o memorondum of understonding with sugorcone out growers i.e. Gem Pocilo Formers Cooperotive Socieiy Lld ond Mzee Omoyo John ond Fomily os lond owners. These were to be supplied ogriculturol inpuis through NAADS. Hence o further contrlbution of governmenl into the compony. e) NAADS in FY20l7llB reollocoted (virement) within its budget UGX 23.5 billion io support ihe Atiok Sugorcone Project in Amuru districts. f) ln FY201B/19, UGX 45 billion wos opproprioted for the project under Ministry of Trode, lndustry ond Cooperotives through Ugondo Developmeni Corporotion. g) In totol since FY20l7/18 lo dote, UGX BB.5 billion hos been spenl on the Prolect. This lronsloles to on excess of UGX 24.5 billion ogoinsl the shore volue of Ugondo Developmenl Corporotion of UGX 64 billion. h) Surprisingly government hos so for only obtoined shore ceriificotes for only ,19.8 UGX billion ond is yet to ocquire shore certificoles for the rest of the investment. i) With the supplementory requesl of UGX l0 billion ond proposed ollocotion of UGX 24 billion inFY2019/20, this would omounl to government investment into the project of o totol of UGX 122.5 billion. This would be on excess of 58.5 billion of the UDC shore copitol. Recommendofion Giyen lhe foct thol governmenl has alreody surpossed ifs ore capitol of UGX 4 billion by 24.5 billion, no furlher inyesfmenf should be inlo lhe Atiak Sugar Project until governmenl ocguires more shoreholdin oryol lnveslmenfs Holding Compony Limited fhol is eguivolenf lo ils contrib 3 Annuol Budgel Performqnce Reporl FY2O17/18.P9.61 - 62 7 3,7 Supplemenlory Funding for Pelroleum Aulhorily of Ugondo The Petroleum Authority of Ugondo (PAU) received supplementory funding of UGX 34.34 billion. Of which: o) UGX 16.72 billion wos releosed os supplementory funding under Schedule 1 for copitol expenditure. However it wos estoblished thot oll the expenditure ilems controvene the Public Finonce Monogement (Amendmenl) Regulotions 2018 for they were qvoidoble or foreseeoble os indicoted in toble below. Toble 2'. Avoidoble or Foreseeoble Activities funded through SU lemento bud et Aclivily Amount (UGX Billion) Recruitment of stoff 4.68 Stoff troininq 0.41 Decelopment of 24 Guidelines ond process monuols 1.76 for the implementotion of the PAU mondote Moniloring octivities of the licensed oil componies t-36 Mointenonce of computer hordwore ond softwore O.BB Generol Insuronce ond lnsuronce of motor vehicles 0.44 Development of new strotegic plon for the PAU for the 0.35 period 2O2O / 2l - 2022 I 2023 Attochment of PAU stoff to the work being done 1.20 outside Ugondo by the licensed oil componies, monitoring visits ond externol trovels reloied lo refinery oroieci ond EACOP neqotioiion Topup for office rent 0.05 Topup for office runninq expenses o.74 Stokeholder engogements through workshops ond 3.62 public heoring forTilengo ond Kingfisher development proiecls Technicol committee meeiings for opprovol of work 0.21 progromme ond budgets of the licensed oil componies Tolol 't6.72 Source: Ministry of Energy ond Minerql Developmenf b) UGX 17.62 billion wos releosed from the Ministry of Energy qnd Minerol Development (Vote 017) to Petroleum Authorily of Ugondo (Vote 312) to coter for copitol expenditures. This is o reollocotion thot requires under Section 20 of the Public Finonce Monogement Acl o resolution of Porlioment thol outhorises the Minisier responsible for Finonce to reollocote funds from one vote to on ther. However the Ministry of Energy ond Minerol Development foiled t o y thot some functions of the vole hove been tronsferred lo Petrol Authority of Ugondo. Hence reollocoiion requirements were not sotisfied hence o controvention of ihe Public Finonce Monogement Act. Furthermore there wos no evidence odduced to confirm lhot consultotions were undertoken between the votes ond their occounting officers os required under Section l2(3) of the Budget Act ond Section 45(l )(b) of the Public Finonce Monogemeni Act respectively. Hence o violotion of the low. The copitol expenditures olso controvene the Public Finonce Monogement (Amendment) Regulotions 20lB for they were ovoidoble or foreseeoble os indicoted in toble below. Toble 3: Copilol expenditures funded through reollocotion from the Ministry of Ene ond Minerol Develo ment Activily Amounl (UGX Bllllon) Procurement of l6 vehicles 4.42 Procurement of furniture ond fittinqs 0.50 Settinq uo the PAU Doto Centre llil Phose) 8.32 Procurement of speciolised computer softwore 4.38 Iolol 17.62 Source: Ministry of Energy ond Minerol Developmeni Recommendolions Ihe supplemenlary expendilures of Pelroleum Aulhotfi of Ugondo should nof be opproved for lhey were ovoidoble ond foreseeoble. Hence they should be lreofed os public loss os provtded for under Regulolion l8(7) of the Public Finonce Monoge m enl Regulolions. The Minisler responsibre for Finonce should under Seclion 78(l) ot lhe Public Finonce Monogement Act, provide on explonofion lo Porliament why the requirernenls ot Public Finonce Monogement Acl could nol be mel before o reollocation wos effecfed. 3.8 Voccines for Fool ond Moulh Diseose Supplemenlory schedule 2 indicotes thot the Ministry of Agriculture, Animol lndustry ond Fisherles requested for UGX 3 billion being vocclnes for Foot qnd Mouth Diseose (FMD). However the Committee estoblished during the interoctlon with Hon. Joy Kobotsi, Minisler of Stote for Animol lndustry thot: o) The Ministry hos odequote U ply of voccines ond required no further purchose of voccines. Hen e outhorisotion for supplementory should never hove been outhorised ond submilted to Porlioment by the Ministry of Finonce, Plonning ond Economic Development, b) The Ministry of Agriculture, Animol Industry ond Fisheries oltered its request ovoidoble ond foreseeoble ilems of monitoring FMD voccine ontibody titres ond quorontine durotion for effective diseose control in Ugondo. This required only UGX 1.26 billion os indicoled toble below. However the expenditures were not oulhorised by Minister responsible for Finonce. Toble 4: Summory Budget for Moniloring FMD voccine ontibody titres ond uorontine durotion for effective diseose conirol in U ondo Activity Tolol Cosl Percentoge (UGX Billion) Shore Trovel, Selection ond Sensilizotion of the study o.14 districts Procurement of equipment 0.1 0 Voccinolion 0.1 8 14% Monthy monitoring (somple colleclion, o.84 67% processinq ond onolyses) Tolol 1.26 Source; MAAIF ond OLOP Computotion Bosed on the obove, Porlioment should be constroined from processing supplemeniory requests thot hove not been outhorised ond submitted by the Minister of Finonce, Plonning ond Economic Development. The Minisky of Agriculture, Animol lndustry ond Fisheries qlso presented lo the Commiltee o request of UGX I .8 billion being funds for Tsetse ond Tryponosomiosis conlrol oround Loke Mburo ond Murchison Folls Nqtionol Pork. Proceeding with the considerolion of this request withoul outhorisotion by the Minister of Finonce. Plonning ond Economic Developmenl is erroneous for it is not reflected in the supplementory requests loid in the House. This would controvene Seclion 25 of the Public Finonce Monogement Act. Recommendolion Ihe requesf of UGX 3 billion for Minislry oI Agricullure, Animol lndustry ond Fisheries being voccines for Foof on d Mouth Dlseose should nof be opproved. Ihis is premised on lhe focl that the Minislry hos sufficienl supply of FMD yoccines, 3.9 UnoulhorizedSupplemenloryRequesls The Committee received unouf horized U ementory request from the Electorol Commission (UGX 8 billion) in breoc the procedure stipuloted in the 0 Constilution ond Public Finonce Monogement Acl. The mojority of the Commiliee hqve recommended opprovol ond ollocotion of funds controry to the low. Arlicle 156(2) of the Constilution, Seclion 25 of the Public Finonce Monogemeni Act ond Regulotion I B(l ) of the Public Finonce Monogement Regulotions stipulote thol supplementory requests sholl be loid in Porlioment. This responsibility is chorged with the Minister responsible for Finonce, Plonning ond Economic Development. Regulotion l8(2) of the Public Finonce Monogement Regulotions demonds thot on Accounting Officer requesting for supplemenlory budget sholl in writing request the Minister for opprovol. The Minister responsible for Finonce hos never outhorised the request from Electorol Commission. ln lighl of the obove, it should be noted thot the Committee inegulorly received ond considered supplementory request thot wos never outhorized by the Minister ond is olien to the House for it wos never loid. Aport from the oct being unconventionol, it roises risk of usurping the powers of the Minister porticulorly screenlng ond outhorising supplementory requests os required under Regulotion l8(2) of the Public Finonce Monogement Regulotions. ln effect, the Choirperson of the Committee ond mojority of the Members ossumed the powers of the Minister. They over stretched the delegoted powers of Porliomenl by considering unouthorised supplementory requests. UGX 8 billion being eormorked for the Eleclorol Commission should nol be approved for the supplemenlary requesf wqs never laid in Porliament os regurired by Article 156(2) of the Consfifufion, Seclion 25 olthe Public Finonce Monogemenl Act ond Regulolion 18(1)-(2) of the Public Finance Managemenl Regulofions. 3.1 0 Sleel ond lube lnduslries Lld ,l.5 Under Ministry of Works ond Tronsport, r: billion is being sought for preporing lond for the setting up Steel ond Tube C ry in Nomonve industriol pork. 11 Following scrutiny of the request ond the inspection report prepored in December 201B by the Ministry of Works ond Tronsporl, ihe tollowing should be noted: o) The totol cost of improving the Steel ond Tube Foctory premises is UGX 26.3 billion of which opprovol is being sought for supplemenlory expenditure of ,l.5 UGX billion. The bolonce of UGX 24.8 billlon wos to be budgeted in FY2019 /20. b) UGX 1.5 billon is meont to undertoke preliminory works, droinoge works ond poving of l5 ocres. c) The works were to be conlrocted out hence the need to initiote ond complete the procurement process within o month. However given the constroint of time, competitive procurement of conlroctor connoi be ochieved before closure of finonclol yeor 2018/19. d) Steel ond Tube lndusiries Ltd hos been o perenniol beneficiory of tox incentives porticulorly cleoronce of income 1ox orreors ond poyment of Corporotion tox os indicoled in toble below. This roises concerns os to when government will ceose finoncing cosls of the compony. Toble 5: Tqx incentives lo Steel ond Tube lnduslries Ltd Tox Incentive Amount (UGX Billion) lncome Tox Arreors cleoTonce (2009 - 20171 20.48 Corporotion Tox poyment (2010 - 2017) ] B,98 Source: Ministry of Finonce, Plonning ond Economic Deve/opmenf Recommendofions Ihe supplemenlory requesl omounting to UGX 1,5 billion being supporl lowords Sleel ond fube lnduslries Lld should nol be opproved for compelilive procurement of controclor connol be compleled before closure of FY2018/19. UGX 26.3 billion being totol requiremenl for sefling up Sfeel ond Tube Foclory in Nomonve induslriol pork be incorporoled into onnual budgel ol FY2019/20. 3.11 Unoulhorised Supplementory Expenditures ,1.5 ln Addendum to Supplementory Schedule 2, Stote House spent UGX billion towords Kyonkwonzi ond Africo Now Conference without prior opprovol of Porlioment os required under Section 25 of the Public Finonce Monogement Act. The expenditure items were not omong those thot ore in excess of the supplementory threshold ol 3%Ihe lotol opproved budget. During the interoction with the Committee, the Stote House Complroller odmitted to hoving committed governmenl b o d the ovoiloble resources. This controvened Section 21(21 of the Public e Monogement Act. lt should be emphosised thot the expendlture wos in occess of opproprioted budget of Stote House ond ought to be treoted os o loss of public funds os provided under Regulotion l8(7) of the Public Finonce Monogement Regulotions. Recommendolion UGX 1,5 billion being expendifure folyords Kyankwonzi ond Atrico Now Conference should nol be opproved. lf should be lreofed os pubfti loss os provided for vnder Regulolion 18(7) of the Public Finonce Monagemenl Regulolions. 3.12 Non Considered Addendums For ovoidonce of doubt, it should be noted thol olthough Addendum 5 to SupplementorySchedule 2FY2018/19 wos loid in Porlioment, itwos not scrutinised by the Committee os required under Rule 170 of the Rules of Procedure. The Addendum comprised of supplementory expenditures of Stote House (UGX 33.28 billion), Locol Governments (UGX 182.87 billion) ond Muni University (UGX 1.04 billion). The Commitlee Choirperson informed the Committee thot there wos Addendum 6 to Supplementory Schedule 2 FY20l8/19 pertoining Ministry of Heolth (UGX l5 billion). At the lime of reporting, the oddendum hod not yet been loid in Porlioment. Hence the Committee wos nol oble to scrutinise il. Recommendolion As required under Rule 170 of lhe Rules of Procedvre, lhe Commiftee on Budgel should scrufinise Addendum 5 lo Supplemenlory Schedule 2 FY20l8/19 ond ony subsequenl oddendum thol moy be I 5 os fo reporl lo lhe House, 4.0 coNCLUSTON Rt. Hon. Speoker ond Members, I im ore o osuppori the Minority r ort. I BEG TO SUBMIT 13 MEMBERS ON THE COMMITTEE ON BUDGET WHO SIGNED THE MINORITY REPORT ON SUPPLEMENTARY EXPENDITURE SCHEDUTE I AND 2 FY2O'18/19 s/N NAME Signoture ii li rtir d{ WfLCr,c\ A,tr liluro**fr4 \qvq,^rq'Y - V 74