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Major development partners will suspend funds due to the UNRA merger
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Major development partners will suspend funds due to the UNRA merger

Over the past working week, MPs blocked breaks in the government’s Rationalization of Agencies and Public Expenditure (RAPEX) policy by openly blocking two bills.

The National Coffee Amendment Bill, 2024, which seeks to bring the Uganda Coffee Development Authority (UCDA) back to the Ministry of Agriculture, Livestock and Fisheries has been stalled twice in plenary sessions.

Also on Thursday, the National Tribunal’s 2024 bill, which sought to merge the Tax Appeal Tribunal with the Energy Litigation Tribunal, was rejected and, as a result, the Minister of Constitutional Affairs, Norbert Mao, had to withdraw it, thus requesting that the bill to be subjected to a fresh trial.

The same scenario may play out once the House Committee on Physical Infrastructure is asked to submit its reports on the fate of the Uganda National Roads Authority (UNRA) and the Uganda Road Fund (URF), which the Executive wants sent back to the Ministry. of Works and Transport.

But it has since emerged that once dissolved, road projects financed by the World Bank and the African Development Bank (ADB) will be suspended.

According to Mr. Dan Kimosho, the Chairman of the Commission on Physical Infrastructure, the two banks have stipulated that the projects they are financing will only be executed by UNRA, not as a department within the Ministry of Works.

He also mentioned that the two financiers stipulated that the funding through the Ministry of Works will be released only when a new evaluation of the Ministry of Works is done.

“If we repeal UNRA today, all these projects will be suspended and the lender will come back to assess the Ministry of Works. There is no specific time as to how long this assessment will take,” Mr Kimosho said. “When a contractor is stopped from continuing to work, he seeks damages from the government. I’m looking at how many projects we’re going to be charged as the assessment continues.”

However, Minister of State for Works Ecweru assured the MPs that the government would continue to provide the funding.

“I want members to know that we have many other funders working on other projects. So they will not be cut off, but mainly these two (World Bank and ADB) have insisted that if the rationalization is done, they are likely to suspend (funding),” he said.

He added: “I can assure you that the World Bank and ADB are dealing with the government of Uganda, they are not dealing with the agency. So the trust they have in the government is not lost. I just want its implementation to be straightened out.”

To enable the committee prepare a comprehensive report to be tabled before the House, the committee’s deputy chairman, Tonny Away, asked the Ministry of Works to assure him that the projects would continue even after the merger. He said this would inform the committee’s decision on the report.

In more than three interfaces held over two weeks, the government presented a flawed financial implication certificate on the UNRA bill and remained unclear on the exact terminal benefits that will be given to the 1,577 workers once the rationalization is implemented.

On Tuesday, Minister of State for Public Service Mary Mugasa, Junior Minister of Finance Amos Lugoloobi and Minister of State for Works Ecweru appeared before the Kimosho-led committee in a bid to persuade lawmakers to disband UNRA and URF, which the trio strove to do.

The trio were expected to answer questions on inconsistencies in the financial commitment certificate, job security, the exact benefits of the terminal, fears of possible dangers of red tape adversely hampering progress in Uganda’s road sector and the fate of staff who will be affected by the planned rationalization.

“Technical officers who possess the requisite qualifications and are willing to join the mass civil service will be given priority in filling the posts in the approved structure,” said Ms. Mugasa, adding, “The divisional fund was created in the structure for. The Ministry of Works and Transport to host the officers handling the fund management function within the URF.”

“The National Roads Department was created under the structure of the Ministry of Works and Transport to house most of the UNRA staff. The Ferry Services Division was also created under the Maritime Department to absorb the staff dealing with ferry services,” she added.

The lawmakers seemed unconvinced.

Based on the information gathered on the financial implication certificate irregularities, Mr. Kimosho notified Mr. Lugoloobi that his commission is in possession of a letter written by Deputy Attorney General Pius Perry Biribonwoha indicating the maintenance of the terminal benefits calculated by UNRA.

“A certificate of financial involvement is issued with a figure that includes the severance allowance calculated by UNRA and a footnote is made to the effect that the amount requested by UNRA will only be paid if it is subsequently definitively determined that the staff is entitled to severance pay dismissal.” Mr Kimosho read Mr Biribonwoha’s letter in part.

He added: “As the figure is only an estimate, the certificate of financial commitment will be in accordance with section 74 of the Public Finance Management Act.”

This would mean that the Ministry of Public Service forgoes the Shs 46 billion originally planned as terminal benefits package for UNRA staff.

While appearing before the same committee on October 15, UNRA Executive Director Allen Kagina told lawmakers that the government will have to spend at least Shs196 billion on terminal benefits for its staff.

In response, Mr Lugoloobi said: “The document you are reading is the letter I have. I want to claim that the bottom line from this… I thought that might solve the problem. We could then go from the previously issued certificate and issue a certificate that captures that conclusion.”

Accordingly, Mr. Lugoloobi promised to amend the certificate of financial involvement. He did not define the exact date on which this will be done, but the MPs insisted that they will not proceed with the bill unless the mentioned certificate of financial commitment is used.

On several occasions, a litany of irregularities and insufficient preparation have emerged during the RAPEX legislative process in Parliament.

While tabling the Minority Report on the National Tribunal Bill 2024, Erute South MP Jonathan Odur disclosed that a defective certificate of financial commitment was attached to the said bill and that key stakeholders such as the Uganda Revenue Authority ( URA), were not consulted. .

The planned change, if approved, he said, would contravene the provisions of the Constitution.

“It is important to note that this article not only requires Parliament to establish tax tribunals but also prescribes the nature of tax disputes that can be brought before the tax tribunal. The deliberate use of the word tax in front of the court signifies the intention of those who drafted the Constitution to baptize it as a tax court,” said Mr. Odur.

These reasons overcame the majority report that approved the government’s plan.

In another dramatic performance, the Leader of the Opposition in Parliament (LoP), Mr Joel Ssenyonyi, led an opposition deadlock in Parliament’s second reading of the National Coffee Amendment Bill, 2024. In successive cases, he witnessed on wednesday and thursday, mr ssenyonyi organized his troops to obstruct the middle and final stages of processing the national coffee amendment bill.

On Wednesday, Speaker Among opted to cancel deliberations on the said subject as he adjourned the Chamber sine die on Thursday. It is therefore unclear when the bill will be finalized by Parliament.

”In the case of rationalization of UNRA, the provisions of Section 6.01 of the ADB Loan Agreement/Section 5.01 of the ADB Loan Agreement shall be invoked if, as provided, the legislation establishing UNRA has been amended, suspended repealed or waived. or if, in the Bank’s opinion, the legal ownership of UNRA’s control has changed…” Mr Dan Kimosho, Chairman of the Commission on Physical Infrastructure