The Public Accounts Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has summoned the Uganda Investment Authority (UIA) to account for the improper allocation of Shs55 million towards sponsorship of investment promotional gatherings, a violation of fiscal responsibility guidelines outlined in the Fiscal Charter.
This discrepancy was among the issues highlighted in the Annual Audit Report for the fiscal year 2022/2023.
“Under our existing agreements with various collaborative entities, we are obligated to support initiatives promoting investment, business growth, and the formalization of Small and Medium Enterprises (SMEs). Consequently, our involvement in sponsoring investment-related events is essential. The most viable method for addressing these agreements and sponsorships was through the utilization of consultancy service funds,” explained Simon Lwanga, the Chief Executive Officer of UDC.
Lwanga and officials from UIA appeared before COSASE, chaired by Hon. Angela Nakato, on Thursday, 20 February 2024.
He assured the committee that UIA was taking proactive measures to implement recommendations from the Auditor General aimed at preventing such occurrences in the future.
“The Office of the Auditor General (OAG) advised us to develop realistic budgets to prevent instances where activities are incorrectly charged to improper accounts due to either exhausted or inadequately provided funds,” Lwanga stated.
Hon. Nakato, representing Mabira County, requested a detailed list of the promotional events prompting UIA to breach financial expenditure regulations.
“We are addressing a misallocation issue where the law is unequivocal, and evidence of wrongdoing is apparent. The Auditor General has made his recommendations, and we will make our determinations accordingly. We request a comprehensive account of events sponsored at that expenditure level,” Nakato emphasized.
UIA’s Director for Investment Promotion and Business Advancement, Catherine Mirembe, outlined various regional investment initiatives co-sponsored by UIA, including the Mukono Development Symposium, the Emerging Entrepreneurs Conference, EAC Economic Summit, and the Great Lakes Investment Forum.
Legislators expressed concern over procedural irregularities in the recruitment process, where UDC failed to hire staff as indicated in the OAG report. The report revealed that out of the Shs49.9 billion allocated to UDC, only Shs49.62 billion was utilized, with unspent funds attributed to unsuccessful recruitment efforts.
Lawmakers contested UIA’s explanation that recruitment failures were due to a lack of qualified candidates.
“It is incredulous to suggest that UIA, with its mandate, could not find suitable candidates for its positions, as their tasks are not overly complex. We need clarification on whether there were delays in engaging an external hiring firm or internal procedural issues,” remarked Hon. Paul Ssekabira (Independent, Kasubi North).
Nakato assured the committee’s commitment to investigating failed recruitment attempts by examining recruitment standards, the caliber of candidates sought by UIA, and the quality of applications received.
The committee lauded UIA for the consistent growth of the sector, noting a surge in licensed projects from 390 to 607 over the past biennium. UIA also reported an uptick in planned investments from Shs1.86 billion to Shs5.27 billion since 2020.
