Parliament approves sh7.3b for LC1, LC2 salary payment

KAMPALA - Local Council leaders, teachers, local road contractors and Deputy Resident Commissioners are among the individuals who can now be assured that they will be paid their claims from government following Parliament’s express approval of sh4.2 trillion supplementary budget.

According to the request tabled in Parliament by State Minister Finance Henry Musasizi, the over 90,000 LC1, LC2 and Councillors at sub-counties will be paid sh7.3b as ex-gratia and honoraria arrears although sources at the Ministry of Local Government told New Vision that the leaders are currently demanding over sh15b in arrears.

Local Government Minister Raphael Magyezi told New Vision that the leaders had not been paid for the last four or five years.

Each Local Council Chairperson is paid sh10,000 per month while a councillor at the sub-county level is paid an honorarium of sh35,000 per month.

The supplementary also contains sh35.2b to purchase vehicles for Local political leaders such as district chairpersons, City and Municipal Mayors who reportedly had not had official vehicles since they were elected into office in 2021.

Sources informed New Vision the agreement to pay the leaders was a result of a presidential directive to the Ministry of Finance. Last week, Parliament put the Minister of Local Government demanding payment of the leaders.

Local Government Minister Raphael Magyezi welcomed the move to pay the Local leaders saying their payment has been pending for a long time.

“I am so happy that the Ministry of Finance has taken heed to the President’s directive to pay these local leaders and also purchase vehicles for the chairpersons. They have been having challenges in monitoring government programmes. Let’s give them the vehicles and then ask them for accountability,” he said.

Local Government Minister Raphael Magyezi welcomed the move to pay the Local leaders saying their payment has been pending for a long time.

The supplementary request was presented in Parliament on Tuesday, scrutinised by the Budget Committee on Wednesday morning and passed by Parliament in the afternoon.

In a report presented to the House by Sheema Municipality MP Dickson Kateshumbwa who sat in for the chair Patrick Isiagi (Kacumbala County), the Committee MPs recommended that all the money requested be passed.

The 2024/25 financial year will end in June 2025, meaning the institutions have up to three months to spend the money.

The House passed the Budget despite resistance from some opposition members led by Kira Municipality MP Ibrahim Ssemujju who presented a minority report saying majority of the items were not of an emergency nature as required by the Finance Management Act.

Ssemujju criticized authorities for distorting the national budget with rushed supplementary allocations that allow no room for scrutiny.

He dismissed claims that the items were of an emergency nature, pointing out several that had been anticipated before the budget was drafted.

Jonathan Odur (Erute South, UPC) though said he supports the supplementary request, said the process was illegal since some of the institutions were not consulted by the Committee.

“When a supplementary budget which does not form part of the budget is brought, Rule 153 which should be read together with 148 and 149 requires you to subject this supplementary to scrutiny by the sectoral committees first before the budget committee can report,” Odur cited.

“There are sectors where I belong, for example, the justice and constitutional affairs, the sectoral committee did not meet,” he added.

However, Speaker Among emphasized that while they appreciated Odur’s concerns, they were constrained by time.

“When you look at the matters of urgency on some of these issues that are being brought, that is what is prompting us to do what we are doing. If I could give an example, Ogwang will stand up and say you know my contractor is leaving Akii Bua stadium. We have African Nations Championship (CHAN) in August and that kind of thing,” Among argued. 

“Members of sectoral committee are members of the budget committee. We are alive to that fact and our imagination and belief is that they have been there to make sure that these issues are being handled. We appreciate what you are saying but we have had these kinds of scenarios and then we are going into the budgeting process, we should be able to conclude this. Systems cannot stop working because we don’t have money and yet we have obligations to meet,” she argued.

MP Ssemujju criticized authorities for distorting the national budget with rushed supplementary allocations that allow no room for scrutiny.

More beneficiaries

The House also approved sh955.812 billion request to the Ministry of Works and Transport of which sh63.5b is to cover the costs of terminal benefits for staff impacted by Rationalisation of government agencies under Uganda National Road Authority and the Uganda Road Fund, sh500b as outstanding debt against Interim Payment Certificates for National Roads projects and District and Urban Community Access Roads (DUCAR).

Umeme buyout

The House also approved the request of sh725.42 billion and Capital expenditure of sh190b.

At the end of February, Musasizi presented in Parliament ‘last minute’ US$190 million loan request to finance the Umeme buyout.

Musasizi said the loan for the buyout will be provided by Stanbic Bank.
Funds for Women's Day celebrations

The MPs also approved sh8.5b for the Ministry of Gender, Labour and Social Development of which sh4.6b is to cater for National celebrations -Women's Day, Youth Day, Day for Persons with Disabilities (PWDS), Day for Older Persons and Labor Day.

Women leaders gathered at Parliament last week and complained to Speaker Among that there was no money to conduct the women’s celebrations in the districts. They requested that Finance provide the money.

The Ministry of Gender was also allocated sh3.8b for support to Masuuliita remand home. It was agreed that the home will start getting a budgetary allocation.
Uganda Police Force sh190.9b

The House also approved sh190b to meet operational shortfalls for financial year 2024/25 in respect of food, crime intelligence and investigations, utilities, classified assets, vehicles for Deputy Police Commanders and domestic arrears.

Financial support to inspire Africa Coffee Group

The legislators questioned the sh60b Inspire Africa Coffee Group for completion and operationalization of the Coffee Value addition Park in Ntungamo (Inspire Africa).

Musasizi said the funds are for completion of standards and certifications, working capital to enable purchase of coffee from farmers, operational funds for running the coffee processing hub and marketing and branding.

The Ntungamo value-addition firm is owned by businessman Nelson Tugume.

During the Budget Committee debate, MP Karim Masaba (Mbale Industrial Division, Indep) and Wilfred Niwagaba (Ndorwa East, Indep) raised concern over the sh7 billion allocation wondering whether the government had shares in the Company.