The Auditor-General, John Muwanga’s report on the Embassy’s audited financial statements was tabled before Parliament last week. Muwanga’s qualified opinion notes that the finances of the Embassy were not handled well.
In June 2018, the Auditor General reported outstanding court awards and compensations totaling 655.1 billion and these decreased to 550.2 billion in his June 2019 report. In the new report accessed by Uganda Radio Network- URN, Muwanga now says that the outstanding amount is 392.4 billion.
A qualified opinion means a statement issued by an auditor accompanying an entity’s audited financial statements suggesting that the financial information provided by the entity is limited in scope or a material issue with regard to the application of generally accepted accounting principles.
Out of the 23.6 billion Shillings, Auditor General John Muwanga notes nugatory expenditure in interest on delayed payments to contractors totaling 7.3 billion Shillings by the Uganda National Roads Authority- UNRA, and another 16.3 billion Shillings loss to the tax payer caused by a 60 months delay in the design review of Masaka-Bukakata road.
Auditor John John Muwanga notes that 41 of the selected entities holding a total of 5,280 vehicles spent 125.7 billion Shillings on vehicle maintenance and had an increase of 28 percent of the average total maintenance costs per vehicle over the 3-year period.
He says that this increasing maintenance costs were attributed to the ageing fleet. For example, 1,817 vehicles out of 3,260 held by 28 entities had exceeded the recommended 5 years useful life or had their mileage above the recommended 250,000 Kilometers.
Auditor General John Muwanga says that Uganda’s high cost of borrowing may deny future generations the opportunity to sustainably borrow. A recent International Monetary Fund- IMF report raised a red flag at Uganda's rate of borrowing, and Uthe country’s credit rating outlook was revised from stable to negative,” reads the audit report.