THE REPUBLIC OF UGANDA - OAG
Transcript of THE REPUBLIC OF UGANDA - OAG
THE REPUBLIC OF UGANDA
REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF
MINISTRY OF JUSTICE AND CONSTITUTIONAL AFFAIRS
FOR THE YEAR ENDED 30TH JUNE 2016
OFFICE OF THE AUDITOR GENERAL
UGANDA
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TABLE OF CONTENTS
LIST OF ACRONYMS .................................................................................................. iii
1.0 INTRODUCTION ............................................................................................ 12
2.0 BACKGROUND INFORMATION ........................................................................ 12
3.0 ENTITY FINANCING ....................................................................................... 12
4.0 OBJECTIVE OF THE MINISTRY ....................................................................... 12
5.0 AUDIT OBJECTIVES ....................................................................................... 12
6.0 AUDIT PROCEDURES PERFORMED .................................................................. 13
7.0 CATEGORIZATION AND SUMMARY OF FINDINGS ............................................. 14
7.1 Categorization of findings ............................................................................... 14
7.2 Summary of findings ...................................................................................... 14
Outstanding Court Awards, Compensations and other liabilities .................................. 14
8.0 DETAILED FINDINGS ..................................................................................... 15
8.1 Escalating contingent liabilities for Court awards and compensations ................. 15
8.2 Outstanding Court Awards, Compensations and other liabilities UGX.684,752,969 15
8.3 Accumulated interest on delayed settlements of court awards and Compensations ………….. ................................................................................................................ 16
8.4 Discrepancies in outstanding amounts at MOJCA and Treasury Operations (TOP) 18
8.5 Statement of Arrears of Revenue .................................................................... 19
8.6 Absence of a Policy Framework on the compensation of persons for property lost due to rebel activity ................................................................................................ 20
8.7 Budget under-funding .................................................................................... 21
8.8 Implementation of activities ........................................................................... 22
8.9 Lack of land titles .......................................................................................... 22
8.10 Staffing gaps ................................................................................................. 23
8.11 Non-payment of Human Rights related cases ................................................... 23
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LIST OF ACRONYMS
Acronym Meaning
CADRE Centre for Arbitration and Dispute Resolution
EDRMS Electronic Document and Records Management Systems
EFT Electronic Funds Transfer
FY Financial Year
GOU Government of Uganda
ICT Information & Communication Technology
JLOS Justice, Law and Order Sector
LPOs Local Purchase Orders
MDA Ministries, Departments and Agencies
MTEF Medium Term Expenditure Framework
MOFPED Ministry of Finance, Planning and Economic Development
MOJCA Ministry of Justice and Constitutional Affairs
NSSF National Social Security Fund
OBT Output Budgeting Tool
PFMA Public Finance Management Act, 2015
PPDA Public Procurement and Disposal of Public Assets Authority
PS/ST Permanent Secretary / Secretary to the Treasury
SG Solicitor General
SWAP Sector Wide Approach
TAIs Treasury Accounting Instructions
UCF Uganda Consolidated Fund
UGX Uganda Shillings
UPPC Uganda Printing and Publishing Corporation
URA Uganda Revenue Authority
URSB Uganda Registration Services Bureau
UTL Uganda Telecom Limited
AG Attorney General
TOP Treasury Operation
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REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF
MINISTRY OF JUSTICE AND CONSTITUTIONAL AFFAIRS
FOR THE YEAR ENDED 30TH JUNE, 2016
THE RT. HON. SPEAKER OF PARLIAMENT
I have audited the financial statements of the Ministry of Justice and Constitutional Affairs
for the year ended 30th June 2016. These financial statements comprise of the statement
of financial position, the statement of financial performance, and cash flow statement
together with other accompanying statements, notes and accounting policies.
Management Responsibility for the Financial Statements
Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and
Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is
accountable to Parliament for the funds and resources of the Ministry. The Accounting
Officer is also responsible for the preparation of financial statements in accordance with
the requirements of the Public Finance Management Act 2015, and the Financial
Reporting Guide, 2008, and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material
misstatements, whether due to fraud or error.
Auditor’s Responsibility
My responsibility as required by Article 163 of the Constitution of the Republic of Uganda,
1995 (as amended) and Sections 13 and 19 of the National Audit Act, 2008 is to audit
and express an opinion on these statements based on my audit. I conducted the audit in
accordance with International Standards on Auditing. Those standards require that I
comply with the ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the financial statements, are free from material
misstatement.
An audit involves performing audit procedures to obtain evidence about the amounts and
disclosures in the financial statements as well as evidence supporting compliance with
relevant laws and regulations. The procedures selected depend on the Auditor’s judgment
including the assessment of risks of material misstatement of financial statements
whether due to fraud or error. In making those risk assessments, the Auditor considers
internal control relevant to the entity’s preparation and fair presentation of financial
statements in order to design audit procedures that are appropriate in the circumstances
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but not for purposes of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by management as well as
evaluating the overall presentation of the financial statements. I believe that the audit
evidence I have obtained is sufficient and appropriate to provide a basis for my audit
opinion.
Part “A” of this report sets out my opinion on the financial statements. Part “B” which
forms an integral part of this report presents in detail all the significant audit findings
made during the audit which have been brought to the attention of management and
form part of my Annual Report to Parliament.
PART “A”
Opinion
In my opinion, the financial statements of the Ministry of Justice and Constitutional
Affairs for the year ended 30th June 2016 are prepared, in all material respects, in
accordance with Section 51 of the Public Finance Management Act, 2015, and the
Financial Reporting Guide, 2008.
Emphasis of matter
Without qualifying my opinion, I draw your attention to the following matters, which have
been disclosed in the financial statements and are also included in part B of this report:-
Escalating contingent liabilities for Court awards and compensations
UGX.5,510,583,811,126
UGX.4,330,041,624,839 was recorded as contingent liabilities in cases against
Government as at 30th June 2015. This position has now escalated to
UGX.5,510,583,811,126 during the current year under review (an increase of 23%).
Under the circumstances and magnitude, there is a risk that the contingent liabilities
may jeopardize Government operations in case they crystalize.
Outstanding Court Awards, Compensations and other liabilities -UGX.
684,752,969,473
The Ministry had outstanding amounts in Court awards, Compensations and other
liabilities amounting to UGX.684,752,969,473 as at the close of the financial year.
The bulk of the liabilities comprised of unsettled court awards and compensations
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which amounted to UGX.680.83 billion. The delayed payment of these liabilities could
lead to penalties in form of interest and other related charges.
John F.S. Muwanga
AUDITOR GENERAL
KAMPALA
16th December, 2016
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REPORT OF THE AUDITOR GENERAL AND SUPPLEMENTARY INFORMATION
PART "B"
DETAILED REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS
OF THE MINISTRY OF JUSTICE AND CONSTITUTIONAL AFFAIRS FOR THE YEAR
ENDED 30TH JUNE, 2016
This Section outlines the detailed audit findings, management response, and my
recommendations in respect thereof.
1.0 INTRODUCTION
Article 163 (3) of the Constitution of the Republic of Uganda, 1995 (as amended)
requires me to audit and report on the public accounts of Uganda and all public
offices including the courts, the central and local government administrations,
universities, and public institutions of the like nature and any public corporation or
other bodies or organizations established by an Act of Parliament. Accordingly, I
carried out the audit of the Ministry of Justice and Constitutional Affairs to enable me
report to Parliament.
2.0 BACKGROUND INFORMATION
The Ministry of Justice and Constitutional Affairs is located at Plot 1 Parliament
Avenue, Queens Chambers. The mandate of the Ministry is to; “provide legal advice
and legal services to support the Government machinery and provide the legal frame
work for good governance”.
3.0 ENTITY FINANCING
The Ministry was financed by grants from Central Government totalling
UGX.71,893,435,219. The Ministry also collected UGX.259,194,538 from NTR and
miscellaneous revenue, bringing total revenue to UGX.72,152,629,757. The grants
revenue of UGX.71,893,435,219 constituted 80.4% of its approved budget estimates
of UGX.89,426,600,137.
4.0 OBJECTIVE OF THE MINISTRY
The objective of the Ministry is to provide legal advice and legal services to support
the Government machinery and provide the legal frame work for good governance.
5.0 AUDIT OBJECTIVES
The audit was carried out in accordance with International Standards on Auditing
and accordingly included a review of the accounting records and agreed procedures
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as was considered necessary. In conducting my reviews, special attention was paid
to establish whether:-
a. The financial statements have been prepared in accordance with consistently
applied Accounting Policies and fairly present the revenues and expenditures
for the period and of the financial position as at the end of the period.
b. All Ministry funds were utilized with due attention to economy and efficiency
and only for the purposes for which the funds were provided.
c. Goods and services financed have been procured in accordance with the
Government of Uganda procurement regulations.
d. To evaluate and obtain a sufficient understanding of the internal control
structure of the Ministry, assess control risk and identify reportable conditions,
including material internal control weaknesses.
e. The Ministry Management was in compliance with the Government of Uganda
financial regulations.
f. All necessary supporting documents, records and accounts have been kept in
respect of all Ministry activities, and are in agreement with the financial
statements presented.
6.0 AUDIT PROCEDURES PERFORMED
The following audit procedures were undertaken:-
a. Revenue
Obtained all schedules of all revenues collected and reconciled the amounts to
the Ministry’s cashbooks and bank statements.
b. Expenditure
The Ministry payments vouchers were examined for proper authorization,
eligibility and budgetary provision, accountability and support documentation.
c. Internal Control System
Reviewed the internal control system and its operations to establish whether
sound controls were applied throughout the period audited.
d. Procurement
Reviewed the procurement of goods and services under the Ministry during the
period under review and reconciled with the approved procurement plan.
e. Fixed Assets Management
Reviewed the use and management of the assets of the Ministry during the
period audited.
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f. Ministry’s Financial Statements
Examined, on a test basis, evidence supporting the amounts and disclosures in
the financial statements; assessed the accounting principles used and significant
estimates made by management; as well as evaluating the overall financial
statement presentation.
7.0 CATEGORIZATION AND SUMMARY OF FINDINGS
7.1 Categorization of findings
The following system of profiling of the audit findings is used to better prioritise the
implementation of audit recommendations:
N
o
Category Description
1 High significance Has a significant/material impact, has a high likelihood of
reoccurrence, and in the opinion of the Auditor General, it
requires urgent remedial action. It is a matter of high risk
or high stakeholder interest.
2 Moderate significance Has a moderate impact, has a likelihood of reoccurrence,
and in the opinion of the Auditor General, it requires
remedial action. It is a matter of medium risk or moderate
stakeholder interest.
3 Low significance Has a low impact, has a remote likelihood of reoccurrence,
and in the opinion of the Auditor General, may not require
much attention, though its remediation may add value to
the entity. It is a matter of low risk or low stakeholder
interest.
7.2 Summary of findings
No Finding Significance
8.1 Escalating contingent liabilities for Court awards and
compensations -UGX.5,510,583,811,126
High
8.2 Outstanding Court Awards, Compensations and other
liabilities –UGX.684,752,969,473
High
8.3 Accumulated interest on delayed settlements of court
awards and Compensations – UGX.175,376,776,109
High
8.4 Discrepancies in outstanding amounts at MOJCA and
Treasury Operations (TOP)
High
8.5 Statement of arrears of revenue – UGX5,869,000,000 Moderate
8.6 Absence of a Policy Framework on the compensation
of persons for property lost de to rebel activity
High
8.7 Budget under-funding – UGX.10,750,588,888 High
8.8 Implementation of activities High
8.9 Lack of land titles Moderate
8.10 Staffing gaps Moderate
8.11 Non-payment of Human Rights related cases Moderate
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8.0 DETAILED FINDINGS
8.1 Escalating contingent liabilities for Court awards and compensations UGX. 5,510,583,811,126
UGX.4,330,041,624,839 was recorded as contingent liabilities in cases against
Government as at 30th June 2015. This position has now escalated to
UGX.5,510,583,811,126 during the current year under review, by 27%. The trend of
rising contingent liabilities on court awards and compensations over the last four
years is summarized on table below;
No Financial Year
to
Contingent liabilities
UGX.
%Percentage increase from
previous year
1 30th June 2013 541,554,003,100 -
2 30th June 2014 4,295,304,082,625 693%
3 30th June 2015 4,330,041,624,839 0.8%
4 30th June 2016 5,510,583,811,126 27%
The contingent liabilities comprise of cases that have been filed against government
pending hearing, cases before courts under hearing and cases in which Government
has appealed against the court ruling. The contingent liabilities are determined from
estimated amounts of claims against government by litigants and the amounts are
used to determine the fees chargeable before the case is heard and the calibre of
Attorney General’s staff to whom the file is to be allocated.
Under the circumstances and magnitude, there is a risk that the contingent liabilities
may jeopardize government operations in case the liabilities crystalize.
The Accounting Officer noted the increasing trend of the liabilities and explained that
government had put in place a policy to decentralize court awards to MDAs. The
Ministry shall sensitize the MDAs on the implications of paying for court awards
arising from their omissions/commissions. This is expected to go a long way to
make them more responsible and accountable.
I await the outcome of management efforts.
8.2 Outstanding Court Awards, Compensations and other liabilities UGX.684,752,969,473 The Ministry had outstanding amounts in Court awards, compensations and other
liabilities totaling to UGX. 684,752,969,473 as at 30th June 2016. The bulk of the
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liabilities comprised of unsettled court awards and compensations which amounted
to UGX.680.83 billion, while the other liabilities amounted to UGX.3.92 billion. The
outstanding amount in Court awards and compensations has been accumulating over
the last five financial years. The table below shows the outstanding amounts in Court
awards and compensations at the end of each year for the last five financial years:
No Financial Year to Outstanding
Amount UGX.
%Percentage increase from
previous year
1 30th June 2012 54,009,997,832
2 30th June 2013 164,163,101,576 100%
3 30th June 2014 253,000,000,000 57%
4 30th June 2015 442,161,234,933 75%
5 30th June 2016 680,830,522,791 54%
The delayed payment of these liabilities leads to penalties in interest and other
related charges.
The Accounting Officer agreed with the observation and explained that government
has made a decision to have the affected MDAs pay their own liabilities with
effect from 1st July 2016.The MoJCA will be responsible for arrears that accrued in
the prior years. The Accounting Officer also indicated that it was important for the
MoFPED and Parliament to ensure that this policy is implemented, and that sufficient
funds are appropriated to enable the Ministry clear the arrears.
I advised the Accounting Officer to liaise with relevant authorities to ensure that the
financial obligations against Government are settled on a timely basis. In the
meantime I await the outcome of the effort of the MDAs to minimise court awards.
8.3 Accumulated interest on delayed settlements of court awards and
Compensations - UGX.175,376,776,109
According to Section 26 (2) of the Civil Procedure Act cap 71, court may in a decree
order interest at such rate as the court deems reasonable to be paid on the principal
sum adjudged from the date of the suit. The Court Awards and Compensations
Committee acts as an administrative arm to advise the Attorney General on which
files should be considered for payment and the criteria for considering the payment
of claimants is as follows; First in first out, high interest rates, small claims groups,
human rights cases, cases with on-going mandamus proceedings and other
deserving cases for instance medical emergencies, orphans among others.
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I noted that in several court cases ruled against Government by decision of court or
by consent of the Attorney General, court awarded interest ranging from 2%, 6%-
25% and even up to 40% in some instances. I further observed that as a result of
government’s failure to pay these court awards on time, the awards have
accumulated interest over time and in some instances the interest has exceeded the
principle award.
A review of a sample of files revealed cases that had not been paid or considered for
payment for close to 10 years after the award was done. I examined details of
sampled files with outstanding accumulated interest totaling UGX.175,376,776,109.
Some examples of the cases with high accumulated interest include;
File No. MA/192/2002 under the names of Stephen B. Rwehura and 1096 others
for a case registered in 1995, with a court judgement amount of
UGX.13,164,000,000 at 6% interest rate had accumulated interest of
UGX.17,497,904,400.
File No. HCCS/1/12/2004 in a case involving Southern Range Nyanza Ltd with a
judgement amount of UGX.8,760,756,112 at interest rate of 2% and interest had
accumulated to UGX.46,453,167,813.
File number C/545/2002 under the names of Mubangizi Patrick with court
judgement amount of UGX.552,800,000 with interest rate of 25% had accrued
interest of UGX.541,283,300.
The rate at which the Government is settling the debts makes it difficult to clear the
outstanding amounts on court awards.
The Accounting Officer explained that this was due to inadequate funding by
MOFPED. He further, explained that the Ministry shall continue lobbying for additional
funds to settle all outstanding arrears
I advised the Accounting Officer to liaise with the relevant authorities to ensure that
adequate planning is done to avail funds to amortize payments for cases with high
interest rates.
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8.4 Discrepancies in outstanding amounts at MOJCA and Treasury Operations
(TOP)
I noted that the settlement of claimants arising out of court awards is being done
simultaneously by both the Ministry of Justice and the MOFPED/Treasury Operations
(TOP) under mandamus orders. However, in some cases; the same claims have
been partly paid by both MOJCA and the Treasury. I also noted delayed reconciliation
of these payments and in some instances there were reconciliation issues at the
Treasury and the Ministry of Justice which could not be harmonized since the
payables ledgers are only maintained at MOJCA.
A review of a sample of files and payables schedules revealed discrepancy in the
total amounts outstanding for some claimants at the Ministry of Justice and
Constitutional Affairs and the one reported by TOP for the same claimants. Whereas
TOP indicated total amount payable as UGX.261,109,101,578, MOJCA reflected
UGX.86,331,220,017 resulting into a discrepancy of UGX.174,777,881,561. The table
below refers:
Name Amount TOP (UGX) Amount MOJCA (UGX)
Yovan Bwambale & 913 others V AGHCCS
No 660 of 2002
10,215,000,000 20,357,596,640
Lozio Masika Beatrice & 288 others from
West Bukonzo Kasese District; HCCS 10 of 2009
2,525,540,000 3,152,512,384
COMDEL FOREX Bureau V Attorney General;
HCCS 497 of 2012
223,306,000 0
Okello Remizo, Alaka Beno & Others V AG, HCCS No 31 of 2014
6,212,871,780 7,419,610,890
The Kamuswaga of Kooki V AG and ST; HCMA 810 of 2015 arising out of HCCS 608
of 2014
159,032,813,410 48,122,260,103
Mwebeiha Amatos V AG; HCMA 882 of 2015 arising out of HCCS 382 of 2015
74,173,538,788 7,279,240,000
Dr MAJ (RTD) Anthony Jallon Okullu V AG
HCCS No 383 of 2012
8,726,031,600 0
Total 261,109,101,578 86,331,220,017
I also observed that in the schedules of cases pending negotiations, TOP reported an
amount of UGX.69,534,088,048, yet amounts declared by MOJCA shows
UGX.73,963,143,233 resulting into discrepancy of UGX.4,429,055,185 on sampled
cases. The table below refers:
Name Amount TOP (UGX)
Amount MOJCA (UGX.)
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Kasozi Lawrence & 4 0thers 2,554,733,174 2,895,078,344
Intex Construction Ltd V AG; Arbitral Award
CAD/ARB No 14/2008
35,430,170,271 50,474,996,443
Adonia Tumusiime and Others V AG;HCMA 32 of
2012
19,590,523,200 7,456,090,118
Modia Investments U Ltd V PSST and AG; EMA 2590 of 2014 arising from EMA 1297 of 2014
arising from HCCS 210 of 2009
525,649,548 653,602,828
Sound Ranchers Ltd V Attorney General; HCCS 150 of 2015
8,228,011,855 7,996,375,500
Picfare Industries Ltd V Uganda Land Commission; HCCS No 542 of 2015
3,205,000,000 4,487,000,000
TOTAL 69,534,088,048 73,963,143,233
The schedule availed by the TOP was last updated on 14th October 2016 while that of
MOJCA was last updated on 30th June 2016.
I was therefore unable to confirm the actual outstanding court awards and
compensation liabilities. Besides I could not ascertain whether the correct payments
were made or accounts properly disclosed as arrears.
The Accounting Officer explained that the files are for cases which are pending
negotiations between MOFPED and the beneficiaries. MOJCA saw it prudent to
accrue interest on these cases since negotiations have not even commenced. The
discrepancy in figures of these cases is the accumulated interest accrued by MOJCA.
I advised the Accounting Officer to ensure that the outstanding court awards and
compensation liabilities are justified and verifiable to avoid inconsistencies.
8.5 Statement of Arrears of Revenue - UGX 5,869,000,000:
The Statement of Arrears of Revenue is a memorandum statement where revenues
still due to the Government are supposed to be recorded. During the financial year
ended 30th June 2016, the Ministry won cases and the Attorney General (AG) was
awarded costs totaling to UGX.5,869,000,000. The table below refers:
S/N Parties Cause of Judgment Amount
Awarded (UGX)
1 Attorney General versus Imperial
Royale Hotel
Breach of contract and
failure to host selected delegates during CHOGM
5,800,000,000
2 Misc. Application No. 01 of 2014;
Nabanja Sentamu Margaret T/A
Mawicha Electronics Makula Beauty Salon VS Mubende Town Council
Judicial Review,
compensation and costs
30,000,000
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3 CA No. 0037 of 2014 Alamiga Haruna
& 3 others VS Yumbe District Local Government
39,000,000
Total 5,869,000,000
This amount was however not recorded in the statement as required. Interviews also
revealed that the Government had won cases in previous financial years and the AG
was awarded costs which are still due to the Government.
The Accounting Officer explained that revenue from cases won by Government is
categorized as Non Tax Revenue. The Government policy on Non Tax Revenue is to
recognize it in the financial statements when it is received and not when it is earned.
I advised the Accounting Officer to adjust the financial statements to include
UGX.5,869,000,000 in the Statement of Arrears of Revenue.
8.6 Absence of a Policy Framework on the compensation of persons for
property lost due to rebel activity
Examination of the Ministry documents indicated that there are several compensation
claims arising out of different rebel and insurgent activities around Uganda in the
past.
I noted that the Acholi, West Nile Sub region, Teso and Lango war claims are
currently among the ones pending and contributing highly to the contingent liability
of the GOU. The table below indicates the potential contingent liability of
UGX.3,564,000,000,000 for some of the known cases currently pending:
Name Cause of Action Amount UGX.
Adyera Nobert (Acholi War
Claims)
Non-payment of compensation in
respect of animals looted by the NRA in Acholi Sub region (This is currently
under verification as per the Presidential directive)
79,000,000,000
Eotu Jeresome (Teso War
Claims)
Non-payment of compensation in
respect of animals looted by the NRA in Teso Sub region
350,000,000,000
Deylon Johnson (Lango
War Claims)
Non-payment of compensation in
respect of animals looted by the NRA in Lango Sub region
1,200,000,000,000
2nd Lango War Claims Non-payment of compensation in
respect of animals looted by the NRA in Lango Sub region
600,000,000,000
West Nile Claim Non-payment of compensation in respect of animals looted by the NRA in
35,000,000,000
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West Nile Sub region (notice of
Intention to sue)
2nd Teso War Claims Non-payment of compensation in respect of animals looted by the NRA in
Teso Sub region (Soroti High Court)
1,300,000,000,000
Total 3,564,000,000,000
I further observed that in a letter dated 1st August 2003, the Minister of Internal
Affairs was instructed by the Prime Minister, to develop a policy framework by 1st
September 2003 to govern the management of compensation of properties destroyed
by rebel activity.
I have not been availed with the copy of the said policy and therefore, I was not able
to establish the policy guiding the acceptance, consideration and payment of the
different claims in this category by Government. In absence of a Policy Framework, it
becomes difficult to determine the eligible communities for compensation.
Although the Accounting Officer explained that the draft policy framework for
compensations was available for verification, it was not availed to that effect. The
Accounting Officer further indicated that the cases listed were concluded in Courts of
Law and therefore not subject to the Policy Framework on compensations.
I advised the Accounting Officer to liaise with the relevant authorities to expedite and
formulate guidelines that shall set out controls and manage any concerns that arise
out of these claims.
8.7 Budget under-funding - UGX. 10,750,588,888
The Public Finance Management Act, 2015 Section 45(3) requires an Accounting
Officer to enter into an annual budget performance contract with the Secretary to the
Treasury which shall bind the Accounting Officer to deliver on the activities in the
work plan of the vote for a financial year, submitted.
During the year under review, the approved budget for the Ministry of Justice and
Constitutional Affairs amounted to UGX.89, 426,600,137. However, by the close of
the financial year, only UGX.78,676,011,249 had been received (representing 88% of
the budget) leading to a budget shortfall of UGX.10,750,588,888.
The shortfall in the releases partly affected implementation of planned activities and
also negatively impacted on the achievement of the Ministry mandate.
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The Accounting Officer agreed with the observation.
I advised the Accounting Officer to liaise with relevant authorities for adequate and
timely funding.
8.8 Implementation of activities
It was also noted that out of UGX.78,676,011,249 received only UGX.71,893,435,219
was spent, representing 91.3% of the total receipts for the period resulting into
unspent balance of UGX.6,782,576,030 that was returned to the Uganda
Consolidated Fund Account (UCF).
The Accounting Officer explained that the funds could not be utilized because
the TOTAL Arbitration proceedings were suspended to allow for amicable
settlement of the case. Secondly, the funds for recovery of costs awarded to
the Government in the Heritage Arbitration case could not be utilized
because the procurement process for external legal counsel could not be
concluded before the end of the financial year and funds for pensions amounting
to UGX.1.2 billion were erroneously sent to the Ministry and letters were written to
MOFPED to that effect.
I advised the Accounting Officer to ensure that all planned activities are implemented
on time.
8.9 Lack of land titles
The Ministry owns Land and Buildings where its Regional offices are situated such as
Mbale, Mbarara, Gulu, Arua and Staff Quarters in Moroto. However a review of the
Fixed Assets Register revealed that these properties were not recorded. It was
further observed that the value of land acquired was not recognized in the Financial
Statements for the Financial Year ending 30th June 2016.
The Accounting Officer explained that they did not have land titles and neither was
the land valued hence they had no basis for recognizing them in the Financial
Statements. The Accounting Officer further explained that the process of obtaining
land titles for all the Regional offices had stalled for lack of funds although now in
the process. Arua and Gulu land had been surveyed and Management has written to
the Land Boards to recommend the issue of titles.
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I advised the Accounting Officer to liaise with the relevant authorities and expedite
the process of acquiring the Land Titles for the mentioned properties.
8.10 Staffing gaps
I noted that the Ministry had 187 posts which are vacant. These included key posts
like Administrator General, Director Civil Litigation and Commissioner Civil Litigation.
Some positions were reported in my previous year’s report but no evidence of filling
the vacant posts has been registered yet. Staffing gaps affect the performance and
overall achievement of organizational goals and objectives.
The Accounting Officer explained that the Ministry has now promoted (3) three
Senior State Attorneys and (13) thirteen State Attorneys to the post of Principal and
Senior State Attorneys respectively. In August the Ministry recruited (6) Six State
Attorneys to fill vacant posts for the Regional offices and the post of Commissioner,
Directorate of Civil Litigation was substantively filled in November 2016.
The Accounting Officer further explained that the remaining vacancies shall be filled
in a phased subject to the availability of funds.
I advised the Accounting Officer to liaise with Ministry of Public Service to ensure
that the vacant posts are filled.
8.11 Non-payment of Human Rights related cases
A review of the outstanding liability of MOJCA revealed that the majority of unpaid
small claims arise out of Human Rights violations arising from instances of inflicting
physical violation of the rights of Ugandans victims by different state organs. I
further observed that some of these payments are as low as UGX 1,000,000 and on
some cases do not attract interest and had been pending since 2006. Table below
refers:
Judgment
/Approval
date
File Name File reference No. Judgment
Amount
Cost
fees
Interest rate
and effective
date
Cumulative
interest
Total
amount to be
paid
Balance
11/6/2012 Akwany Teddy UHRC GLU/ 40/2005 800,000 10% -
11/6/2012
326,666 1,126,666 1,126,666
11/12/2006 Bateganya
Ramanzan
UHRC /34/02 800,000 0 0 800,000 800,000
17/8/2011 Ekodeu Peter UHRC 24/05 400,000 0 6%- 17/8/2011 116,867 516,867 516,867
7/1/2015 Etot Francis UHRC/GULU/76/06 1,000,000 0 1,000,000 1,000,000
14/3/2014 Higyenyi Abbey UHRC 156/03 100,000 0 100,000 100,000
20/4/2015 Kikafunda Mubarak UHRC 98/2007 1,000,000 10% - 20/4/15 108,266 1,108,266 1,108,266
11/7/2014 Okello Mathew UHRC /G/129/04 1,000,000 1,825,000 10% - 11/7/14 188,611 3,013,611 3,013,611
27/9/2006 Olupot John Bosco UHRC 5/377/02 100,000 0 100,000 100,000
27/8/2010 Wagoli Annet UHRC 117/02 200,000 0 0 200,000 200,000
20/10/14 Wamaleyi Aminsi UHRC /J/ 53/07 930,000 0 930,000 930,000
Delayed payments deny justice to the affected parties.
The Accounting Officer explained that the cases of Human Rights Tribunals that have
not been settled are due to failure to trace the claimants. In this regard letters have
been written to UHRC to assist in tracing the claimants so that they can provide their
account details.
I advised the Accounting Officer to adhere to the criteria of paying off liabilities as
set by Court Awards and Compensation Committee.
19
APPENDIX I FINANCIAL STATEMENTS