Govt Funds Continually Channelled To Personal Accounts-AG

Auditor General John Muwanga
Auditor General John Muwanga

Ugandan Accounting Officers are continually advancing Money to personal accounts, according to a report by the country’s Auditor General.

A similar problem was detected in a special value for money audit conducted in the office of the prime minister recently.  The audit unearthed a sophisticated tangled web of collusion, which saw colossal sums fraudulently transferred to dormant accounts where they were accessed by crafty officials in the office.

Now it’s revealed that up to Shs16.2 Billion was advanced to personal accounts in the financial year 2012/2013.  This however is a 76% reduction from the Shs67 Billion that was transferred in a similar way the previous year, according to the latest audit report released by the office of the auditor general.

Although there is a downward trend recorded in the practice, it still threatens financial management and accounting procedures in government institutions, the Auditor General John Muwanga observes.

He advised the accounting officers to avoid the practice which he says is contrary to regulations, highly risky and exposes government funds to loss since Accounting Officers have no control over individual’s bank accounts.

Muwanga also revealed in the extract of the audit report key findings that a total of 65.8 billion advanced to staff to carry out activities in various entities remained unaccounted for by the time of audit contrary to the Public Finance and Accounting Regulations which delays he said may encourage falsification of documents.

The Auditor General also observed a mischarge of expenditure under Central Government Audits amounting to Shs97billion which he said result from expenditure on items being charged to the wrong code defeating the essence of budgeting.

He said that these expenditures were charged on items which do not reflect the nature of the expenditure.  He added that this practice impacts on the credibility of the financial statements since the figures reported therein do not reflect true amounts expended on the affected expenditure items.

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