The Auditor General has exposed alarming mismanagement of public funds among several political parties in Uganda, revealing a staggering Shs 842.1 million in unaccounted funds.
The audit report, issued by Auditor General John Muwanga, scrutinizes the financial statements of the Uganda Electoral Commission for the fiscal year ending June 2023 and uncovers significant lapses in financial oversight.
According to the report, at least six political parties failed to maintain proper financial records as required by the accountant general’s guidelines.
Notably, the ruling National Resistance Movement (NRM) and the Uganda People’s Congress (UPC) were found in breach of their tax obligations, having neglected to remit Shs 2.5 billion in Pay As You Earn (PAYE) taxes to the Uganda Revenue Authority (URA) and Shs 173.4 million in National Social Security Fund (NSSF) contributions.
Under the Political Parties and Organizations Act of 2005, the government is obligated to allocate funds to political parties represented in parliament to support their operations. The accountant general’s guidelines mandate that these funds be disbursed based on agreed work plans and that expenditures be meticulously recorded.
However, the audit revealed that during the audited year, several parties, including JEEMA, DP, and FDC, did not provide the required annual work plans, raising concerns about the proper use of the funds allocated to them.
The report underscores the importance of adherence to financial accountability standards, as six parties were cited for failing to maintain adequate financial records.
JEEMA, for instance, did not keep the required registers for assets, stores, and procurement records, while the PPP’s financial statements lacked budgetary comparisons.
Additionally, non-compliance with tax regulations was a significant issue, with political parties failing to deduct and remit Shs 2.5 billion in PAYE taxes and falling short by Shs 173.4 million in NSSF contributions.
Furthermore, the audit criticized the use of party funds to repay loans from non-bank moneylenders, highlighting the Democratic Party’s (DP) use of allocated funds to settle a loan from a private lender, Babirye Mary Kabanda, for purchasing land.
The Auditor General raised concerns about the high interest rates associated with moneylenders, which could potentially increase the cost of borrowing significantly.
The report calls for urgent improvements in financial management and accountability among political parties, with Auditor General Muwanga emphasizing the need for better guidance and training for party representatives to ensure compliance with financial reporting standards and statutory requirements.
