Naads on the spot over spending Shs7b without budget
In this file photo, Naads boss Dr Samuel Mugasi gestures during an interview with Monitor in 2013. PHOTO/STEPHEN OTAGE
What you need to know:
- The Committee further discovered that Shs172million was diverted towards procurement of farm inputs without approval.
The National Agricultural Advisory Services (Naads) is on the spot over spending Shs7billion without a budget.
The discovery was made when the Naads Secretariat headed by the Executive Director (ED), Samuel Mugasi, appeared before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) on August 8, 2023.
This followed a FY 2021/22 Auditor General’s report which indicated that Naads spent the said funds on domestic arrears, and these had not been budgeted for.
Cosase member and also Rukiga County lawmaker Roland Ndyomugenyi queried where the unbudgeted money was sourced.
In response, Naads manager for planning, Godfrey Masereka Mugisa, explained that: “Previously, the Ministry of Finance communicated figures for domestic arrears which was not done during the FY2021/2022.”
This prompted Ndyomugenyi to ask the Naads Acting Head of Finance and Administration, Geoffrey Malongo, to provide an explanation, but he fell short of a response.
The Committee further discovered that Shs172million was diverted towards procurement of farm inputs without approval. Cosase chairperson Joel Ssenyonyi tasked Mugasi to justify his decision to divert funds in total disregard of the Public Finance Management Act.
“It is not the first time that you people are diverting money. In the previous year, Shs2.1billion was diverted and again you did not seek approval. You know the law and yet you do not act within the law,” he observed.
But Mugasi said that the consideration was made because money was spent in a more useful area, since farmers were in need of inputs.
“We have farmers demanding for inputs and we thought that money would be utilised to support these farmers,” he claimed.
Mugasi further justified that “the decision was premised on the shortfall on the budget” but quickly added that “no more diversions will be made without approvals.”
At the conclusion of the grilling, the Committee directed the Naads officials to provide documents for the meeting where the decision was made to have the funds internally diverted.
About Naads
The National Agriculture Advisory Services (Naads) is a statutory semi-autonomous body under Uganda’s –Ministry of Agriculture.
