Gov’t urged to clear Shs 49bln debt owed to global organisations

KAMPALA – Members of Parliament have cautioned that Uganda faces the risk of international embarrassment over her failure to pay subscriptions to international organisations.

The members of the Public Accounts Committee – Central Government raised the matter during an interface with officials from the Ministry of Foreign Affairs on Monday to look at concerns raised by the Auditor General report for the financial year 2022/2023.

Vincent Bagiire, the permanent secretary of the Ministry of Foreign Affairs, confirmed that Uganda is struggling to fulfill its financial obligations to international organisations, which is tarnishing the country’s reputation.

The ministry currently has outstanding arrears totaling Shs 37 billion owed to various global organisations.

The breakdown of the outstanding debts reveals that the Government owes Shs 10bln to the African Union [AU], Shs 14.7bln to the World Food Programme [WFP], Shs 1bln to the United Nations [UN] Secretariat, and Shs 1bln to the Organisation of Islamic Countries.

Others are Shs 1.6bln to the International Conference on the Great Lakes, Shs 7.4bln to the Intergovernmental Authority on Development [IGAD], Shs 109 million to the Commonwealth Secretariat, and Shs 2.7mln to the Commonwealth Secretariat.

Bagiire explained that the annual appropriation for subscription to international organisations is Shs 6bln. Currently, they are focusing on paying off arrears, without taking into account the current year.

Despite the finance ministry being aware of the necessary financial resources required for subscriptions, the actual bill amounts to Shs 49bln, whereas the Finance ministry initially indicated it could pay only Shs 34bln at the time.

Bagiire emphasised that Uganda cannot ignore its obligations to the UN, EAC, AU, and other international bodies.

“Despite the fact that the Ministry of Finance is aware of the resource requirements that we need for subscriptions. The issue in question – yes, we had Shs 34bln, Finance [the ministry] said it can pay at the time but the Shs s49 billion is the actual bill,” he said.

Eddie Kwizera, the MP for Bukimbiri County, proposed that the central government, through the Secretary to the Treasury, assumes responsibility for paying the subscriptions, as it is a national mandate.

He expressed concerns that Uganda’s failure to subscribe could lead to embarrassment at international events, affecting the President’s diplomatic representation.

“As diplomat number one, the President can be embarrassed – they are carrying a national representation. They should find out how they can harmonise that,” he said.

The current practice involves government releasing funds directly to the concerned entities for subscription.

Tororo South County MP, Fredrick Angura, noted that the issue of subscription to international organisations is a recurring accountability problem that brings contempt upon the country.

“I believe the President is the Chief Diplomat and owner of the purse. Why don’t you put this challenge to him as this is bound to indict us as a country?” Angura asked.

Bagiire concurred with the MPs, acknowledging that Uganda has faced multiple instances of embarrassment due to nonpayment, including the threat of Uganda’s microphone not turning red.

Asuman Basalirwa, the deputy chairperson of the committee and MP for Bugiri Municipality, urged the Foreign Affairs team to consider the proposals and find resolutions to address the matter.

https://thecooperator.news/fort-portal-city-grappling-with-shs-10bln-debt/

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