The Ugandan Parliament's Public Accounts Committee (PAC-Central) has raised concerns over the Ministry of Finance's expenditure on vehicle-related costs. According to the Auditor General's report for the 2024/25 financial year, the ministry spent Shs 20.25 billion on fuel, oil, and motor vehicle-related costs. This breakdown includes Shs 5.05 billion on motor vehicle maintenance, Shs 13.9 billion on fuel and oil, and Shs 1.3 billion on other fuel and motor vehicle-related expenditures.
The committee, chaired by Patrick Oshabe Nsamba, has tasked the ministry with providing detailed supporting documents for the expenditure. Mbale Industrial Division MP Karim Masaba noted that the ministry's trial balance showed a significant outlay for vehicle maintenance and fuel. With a fleet of 186 motor vehicles and 12 motorcycles, the total expenditure translates to an average of Shs 108.9 million per vehicle annually, or approximately Shs 298,300 per vehicle per day.
The committee has questioned whether the expenditure represents value for money. Oshabe expressed concerns about the level of expenditure given the ministry's core mandate of economic policy, financial management, and treasury operations. The ministry's under secretary, Edward Sengonzi Damulira, acknowledged the committee's concerns and assured that lessons would be applied in the next accounting period.
The ministry's head of accounts, Hilda Nyamaizi, explained that the expenditure covered a range of activities, including property management, utilities, stationery, and other services across the ministry's departments and units. The ministry reported spending Shs 160 billion on goods and services during the financial year. This includes Shs 3.028 billion on communications, Shs 8.246 billion on utilities and property expenses, and Shs 11.548 billion on supplies and services.
The committee also noted a discrepancy between the Shs 5.05 billion motor vehicle maintenance figure cited from the trial balance and the Shs 6.878 billion subsequently reported under vehicle maintenance. Officials were directed to explain the difference and provide a detailed breakdown to enable the committee to establish the actual cost of running and maintaining the ministry's fleet.
The ministry's expenditure on professional services, travel and transport, and motor vehicle-related costs was also scrutinized. Figures presented to the committee show that the ministry spent Shs 91.841 billion on professional services, Shs 59.118 billion on travel and transport, and Shs 6.878 billion on vehicle maintenance. Oshabe directed ministry officials to provide detailed supporting schedules for the expenditure.
The committee's scrutiny aims to establish whether the ministry's expenditure represents value for money. The ministry's vehicle expenditure has raised concerns about the efficiency of its operations and the need for greater transparency in its financial management. The committee's findings and recommendations are expected to inform future budgetary decisions and improve the ministry's accountability.
Key points
- The Ministry of Finance operates a fleet of 186 motor vehicles at a daily cost of approximately Shs 300,000 per vehicle.
- The committee has tasked the ministry with providing detailed supporting documents for the expenditure to ensure value for money.
- The ministry's expenditure on goods and services totaled Shs 160 billion during the 2024/25 financial year.
