Ugandan lawmakers have summoned officials from Jinja Regional Referral Hospital to respond to queries in the auditor-general’s report for the financial year 2023/2024, regarding spending of Shs1.2 billion on water bills.

In response to the summons, the hospital director, Alfred Yayi, appeared before the Public Accounts Committee led by the vice-chairperson, Gorreth Namugga, on Tuesday.

According to lawmakers, the auditor general’s report for the financial year 2023/2024 revealed that the hospital had accumulated water arrears exceeding Shs3.7 billion over a 10-year period. Despite allocating only Shs68 million to clear the water arrears, the hospital spent Shs1.2 billion.

The legislature raised concerns that the situation could lead to diversion or mischarge of funds, which would both undermine public accountability.

The committee then implored the hospital to provide a detailed breakdown of how it was able to finance such an amount exceeding its budget, and whether it had sought authorization from the Ministry of Finance, Planning, and Economic Development.

“We actually applaud your creativity in trying to save lives in Jinja City and beyond, but we need transparency. Where exactly did you get the money? Which budget votes did you cut? If you used funds from the private wing, say so,” Mr Namugga said.

Also concerning the accumulated water arrears exceeding Shs3.7 billion over a 10-year period, the committee expressed shock at the scale of the debt and the duration of nonpayment, questioning the hospital why it failed to prioritise settling such substantial domestic arrears.

Mr Namugga said, “So National Water and Sewerage Corporation is that lenient that you have been consuming water for over 10 years without payment? How did you manage that?”

The committee went on to criticise the hospital administration for consistently under-budgeting for utilities. 

“It seems you are the ones creating these financial problems. You cannot expect the government to give you more money when you are under-budgeting. If you need Shs90 million and only budget for Shs30 million, where do you expect the shortfall to come from?” said David Karubanga (NRM, Kigorobya County).

Meanwhile, Victor Nekesa, a UPDF representative, questioned Mr Yayi, wondering how the budgeting and arrears issue had been allowed to persist despite the hospital submitting its annual budgets and receiving public funds.

Mr Yayi, responding to all the committee’s concerns, stated that the hospital had obtained its additional funds through support from a USAID-funded initiative known as G2G (government-to-government), which reimburses hospitals based on performance milestones.

Mr Yayi explained that the funds obtained from the programme are then allocated to the hospital’s priority areas, such as utilities.

However, the committee dismissed such explanations, stating that they were insufficient and lacked detail.

Mr Yayi then requested that the committee grant him more time to provide a comprehensive explanation regarding the hospital’s source of funds used to clear part of the water arrears, which the committee granted.

“We have not fully addressed the specific issue raised. We request a few hours and will respond by the end of the day,” Mr Yayi said.