Uganda National Road Authority (UNRA) has revealed it will carry forward outstanding debts of Shs 259.3 billion to the next financial year after funding from the World Bank was suspended.
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In her quarterly accountability presser, UNRA boss Allen Kagina on Wednesday revealed that by close of the last financial year 2015/16, UNRA had a debt of Shs 259.3 billion, which was carried forward to this FY 2016/17.
Ms Kagina said: “This means that the budget for this FY was short by an equal amount. Payment of such outstanding debts take priority in the new FY and therefore immediately reduces the available budget.”
“Funding from the World Bank is still suspended which has resulted in the reduction to the available budget for road development. However, in order for Government not to default on its obligations on the ongoing contract for Kyenjojo-Kabwoya upgrading project, payments have continued to be made from Government resources, which is constraining the progress of its other government of Uganda funded projects.”
Kagina also said that in the last 5 months, they have been able to absorb all funds released as expected.
“In the last 5 months, UNRA has been able to absorb all funds released as expected. However the current total bill on ongoing projects for which UNRA is unable to pay due to insufficient funds on the specific projects currently stands at Shs 109 Billion,” she revealed.
However, the reducing budget yet the development programme keeps increasing has resulted in UNRA not being able to meet its obligations with respect to payments. While some projects have run out of budget already, some have suffered delayed payments, attracting interest.
Meanwhile, Parliament has adopted a report by the committee on Commissions statutory authorities and state enterprises (COSASE) which recommends an audit of all projects under the UNRA.
The committee’s report follows a three months probe which unearthed rot in the Authority.
“This institution can be described as extremely sick. Whatever can go wrong in an institution indeed went wrong in UNRA. Fraud coupled with incompetency was the order of the day. Any achievement was more of an accident than deliberate.” COSASE chairperson Abdu Katuntu told parliament.
The report noted that although the Auditor General sampled a few projects managed by UNRA, all sampled projects were riddled with gross management challenges hence a need for an audit into all projects.
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