Legal Affairs Committee Suspends Rationalization Bills Over Financial Implications

The Legal and Parliamentary Affairs Committee has halted the consideration of rationalization bills within its jurisdiction after MPs discovered a critical oversight in the certificate of financial implication issued by the Ministry of Finance.

This decision came after concerns were raised regarding the absence of cost implications for abolishing or merging certain agencies.

Ibrahim Ssemujju, Member of Parliament for Kira Municipality, highlighted the discrepancy, pointing out that Section 76 of the Public Finance Management Act 2015 mandates that a certificate of financial implication must include revenue estimates for any bill’s impact on the economy.

However, the certificates issued by the Ministry of Finance concerning rationalization bills failed to outline any cost implications, despite the inevitable need to compensate affected staff.

Ssemujju emphasized the importance of respecting Parliament’s authority, stating, “Even when winding down a parastatal, there will be costs involved, including compensation for individuals and addressing domestic arrears.

“It is not acceptable to present a budget claiming zero costs while expecting Parliament to simply approve it. The certificate presented does not fulfill the requirements outlined in Section 76 of the PFMA.” said Ssemujju

Attorney General Kiwanuka Kiryowa urged the committee to seek further clarification on the matter, explaining,

“I cannot speak to the content of the certificate of financial implication as I am not its author. The Ministry of Finance should be consulted to address these concerns. I am available to provide legal insights, but the committee should proceed with its deliberations on the financial aspects.” Kiryowa noted

The Legal & Parliamentary Affairs Committee is tasked with considering several constitutional amendment bills and other legislation as part of the rationalization process. Notable proposals include merging the Equal Opportunities Commission with the Uganda Human Rights Commission.