Ggoobi Sounds Alarm on Budget Rule Breaches, Warns Accounting Officers of Severe Penalties

Accounting officers in ministries, departments, agencies, and local governments are on notice. Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, has signaled that non-compliance with the upcoming fiscal year’s Budget Execution Circular will not be tolerated. The consequences for breaching these stricter rules are significant and could lead to a loss of position, potential non-renewal of contracts, and suspension from crucial financial systems.

Ggoobi emphasized during a recent meeting with accounting officers that the Ministry of Finance, Planning and Economic Development (MoFPED) will not permit “budget execution games.” This directive is part of a broader reform initiative aimed at instilling greater discipline, credibility, and accountability in the management of public resources.

New measures include centralizing counterpart funding under the Treasury Operations Department, requiring ministries and agencies to submit their funding needs quarterly. Procurement controls have also been tightened, mandating the use of national framework agreements for common items like vehicles and IT equipment to streamline and strengthen spending oversight.

Furthermore, accounting officers must ensure timely payments for salaries, pensions, taxes, and National Social Security Fund (NSSF) contributions, with strict deadlines set for the 28th of each month for salaries and taxes/NSSF, and the 15th for pensions.

In an effort to bolster the Ugandan Shilling, most public contracts will now need to be denominated in the local currency, with exceptions only for diplomatic missions and specific development partner agreements. The Ministry has also enhanced controls over the Parish Development Model (PDM), directing local governments to recover loans and prohibiting the charging of access fees to beneficiaries.

To ensure project accountability, accounting officers are directed to strengthen monitoring through the Integrated Bank of Projects. Those with projects exiting the program must submit completion and evaluation reports promptly.

The ultimate goal of these reforms, according to the Ministry, is to ensure that allocated budgets translate into tangible programs and services, while minimizing financial leakages and implementation delays. Ggoobi stressed that accounting officers will be held personally responsible for adhering to the Budget Execution Circular guidance. Failure to comply risks not only the aforementioned penalties but also public disclosure and referral to oversight bodies.

Source: Nile Post