Kampala
6/11/07
 
UGANDA’S AUDITOR GENERAL TURNS DOWN THE REQUEST TO ISSUE MONEY FOR PRIVATELY OWNED HOTELS

By Leo Odera Omolo
 
Reports emerging from Kampala have revealed that the Audit General has rejected a request from the Ministry of Finance to pay Ushs 4.8 billion for the two CHOGM hotels.
 
The Minister of State for Finance Joachim Omach, according to sources in Kampala had asked for Ushs 2.1 billion for Imperial Royale Hotel the venue for the media centre, which is owned by a business tycoon Hirji Karim and Ushs 2.6 billion for J and M. Airport Road Hotel in Entebbe.
 
According to the Minister, the government would later turn the money invested in the two hotels into shares like it had done with the Commonwealth Resort in Munyonyo. But the Auditor General John Muwanga had told the Ministry to first look for Parliamentary approval.
 
“Releasing this colossal amount of money without parliament approval, said Mr Muwanga was illegal.
 
 ‘’The nature of the expenditure is to private equity funding the two private hotels,” the Auditor General wrote to the ministry.
 
 
‘’Parliament has through the Public Account Committee directed that no further involvement or granting of funds to private enterprises be entered into by the government without the approval of parliament.
 
Muwanga said,” if unauthorized, the expenditure would constitute into loss of public money.”
 
He concluded, “I am unable to issue a grant of credit for this due to the fact that I do have powers to approve the release of funds to private companies.’’
 
Earlier the Minister had appealed to the Auditor General to approve the release of the money since t was cleared by the Solicitor General.’’
 
‘’In view of the clearance of the solicitor General’s office of the co-investment and given the urgency and following a presidential directive, I am of the view that you can clear this particular expenditure as soon as possible to enable us have these hotels ready for CHOGM Summit, ‘’ the Minister wrote on October 24th 2007.
 
But in a recent report to parliament, the Auditor General noted with concern that his office had no power to audit private companies where the government was a minority shareholder.
 
Ends.
leooderaomolo@yahoo.com