The newly released Auditor General's report has cited payment irregularities, procurement anomalies, funds not accounted for, under collection of local revenue, and poor asset management among other vices in the local governments.
Auditor General John Muwanga together with his deputy Keto Nyapendi Kayemba today presented the June 2016 audit report to Speaker of Parliament Rebecca Kadaga.
The report indicates that 11.3 billion Shillings was paid irregularly following a payroll analysis carried out in local governments.
Muwanga highlights some of the irregularities as 1.1 billion shillings in over payment, unsupported pension payments of 9.5 billion and 657 million Shillings in wrongly paid salaries.
“The accounting officers attributed the irregularities to challenges encountered during decentralisation of salary payments on the Integrated Financial Management System (IFMS) and Integrated Personnel and Payroll system (IPPS) and outright errors during the salary payment process,” reads the audit report.
The report further highlights that 33 local governments procured items worth Shillings 27.5 billion Shillings without following Public Procurement regulations and guidelines.
This amount is comprised of 1.3 billion which lacked procurement files, 21.2 billion where there was breach of procurement procedures, 4.6 billion involving inadequate contract management and 315 million shillings in unauthorised contract variations.
Auditor General Muwanga notes that with such procurement anomalies, it becomes difficult to ascertain whether value for money was achieved. He also highlighted other anomalies like 3.8 billion Shillings unaccounted for in local governments.
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The audit report revealed significant under-collection of local revenue in 161 councils amounting to 17.1 billion Shillings.
On Assets management, the audit report indicates that out of 307 local governments, 148 entities lacked titles for the land where council properties are located.
“There is a risk that council land is exposed to encroachment and disputes which later leads to litigation in courts of law arising from land disputes between councils and the communities,” reads part of the audit report.
Muwanga said that accounting officers attributed lack of land titles to absence of funds to process the titles and absence of district land boards.
Muwanga cited a need for accounting officers to prioritise and allocate funds to ensure that land titles are secured.