Members of Parliament on the Public Accounts Committee (Central Government) want officials from Mulago Specialised Women and Neo-natal Hospital to explain financial irregularities involving the Bank of Uganda after the closure of the financial year.
During an interaction with the hospital officials on Monday, 31st July 2023, the committee questioned the issuance of the letters of credit worth Shs4.07 billion from the Bank of Uganda on 22nd July 2022, well after the end of the 2021/2022 Financial Year.
The officials, led by the Executive Director, Dr. Evelyn Nabunya, had appeared before the committee to respond to audit queries raised by the Auditor General.
According to the Auditor General’s report, the letters of credit amounting to Shs4.07 billion were issued for the procurement of specialized medical equipment (Shs3.4 billion), an ambulance (Shs390 million), and a pick-up vehicle (Shs208.9 million).
Hon. Xavier Kyooma (NRM, Ibanda County North) expressed concern about the allocation of funds for vehicles that were not purchased within the specified financial year. He questioned why the hospital needed the letters of credit if the budgeted money had not been utilized by the end of the financial year, suggesting that any unspent funds should be returned to the Consolidated Fund.
In response, Mubiru Muhammad, the Principal Hospital Administrator, explained that the letters of credit were issued because the procurement process for the specified items was still ongoing when the financial year came to a close. The funds allocated for these purchases were transferred to the Bank of Uganda with the intention to be paid upon the delivery of the procured items.
Dr. Evelyn Nabunya further elaborated on the procurement delays for the vehicles, attributing them to changes in the hospital’s specifications. She explained that the hospital initially planned to acquire an ambulance with a smaller capacity but later realized that it would not meet the specialized service needs offered by the hospital. Consequently, they sought new approval for an ambulance with a higher capacity.
Nabunya also pointed out that the financial constraints caused by increased prices due to the impact of the Covid-19 pandemic resulted in insufficient funds to purchase the vehicles during the audited financial year.
The Parliament’s Public Accounts Committee continues to investigate the matter to ensure transparency and accountability in the use of public funds. The hospital officials have been urged to provide detailed justifications for the delayed issuance of letters of credit and the handling of budgetary allocations.