Budget Committee Rejects Third Supplementary Budget Request Over Failure To Follow The Normal Procedures

The Minister of State for Finance Hon Henry Musasizi has  defended third supplementary budget request before Parliament’s Budget Committee noting that, the funding for Uganda National Oil Company (UNOC) is needed as additional equity acquisition in East African Crude Oil Pipeline to meet the cash call arising from delayed financial close by the financiers.

“This is required before 1st July 2024 in order to meet the funding obligations in the EACOP projects. This funding will be accessed from the Petroleum Fund in line with the Section 59(3) of the Public Finance Management Act 2015. Shs400Bn is currently in the petroleum Fund, I propose to utilize Shs284.634Bn in line with the Section 59(3) of the PFMA to finance the acquisition of equity in East African Crude Oil". The minister stated

However,Hon. Patrick Isiagi, Chairperson Budget Committee  has rejected the Supplementary request describing it as illegal since it did not follow the normal procedures of having the request tabled before Parliament before having it referred for processing by the Budget Committee. 

 “As such, it will be illegal for this Committee to start processing this supplementary request until it becomes business of the House and then the House will decide either to process it there or delegate it to this Committee,” remarked Isiagi.

Hon. Ibrahim Ssemujju (Kira Municipality) described the latest supplementary proposal as fraudulent and wondered whether the government entities are seeking for extra funds will be in position to absorb the funds within 20days ahead of the closure of the financial year in June 2024. “It is going to be very difficult for anyone to absorb this money because the Government procedures intended to protect taxpayers’ money are too procedural, they are too many. In the remaining 20days or one month to close the Financial Year, you can’t fulfill any of the requirements," Ssemujju said.

“There are no procurement plans, even if the procurement plans are there, you mean these fellows are going to spend Shs288Bn in 20days? I don’t know what has happened to Uganda that these fellows can sit every day and originate a supplementary budget. But I have been told that when they were in Cabinet, the budget kept growing then the said, what do we do? You remove things that are emotional that MPs will pass without scrutiny because we have heard MPs shouting Aki-Bua stadium so they said those ones you can smuggle them to Parliament through a supplementary because they know they are popular," added Ssemujju