President Yoweri Museveni has directed the finance ministry to dissolve non-money generating government Departments and Agencies (DAs), in a bid to reduce on expenditure and also to streamline their operations.
According to highly-placed sources, the President also directed that the dissolved agencies and departments revert to the parent ministries.
The sources said that in a 3-page letter to Finance Minister Matia Kasaija and also copied to the Minister of Energy and Mineral Development Irene Muloni, the Minister of Agriculture Vincent Ssempijja and that of Works Monica Ntege Azuba, the President says it is waste of money to keep funding departments/agencies that don’t make money. UNRA, which falls under the Ministry of Works, is the biggest beneficiary of state funding, and in the financial year 2017/18 received Shs3.89 trillion.
Among the other agencies earmarked for dissolution, the sources said, is the Uganda National Roads Authority (UNRA), the National Information and Technology Authority (NITA) and the Uganda National Bureau of Standards (UNBS).
Other non-money making government DAs include among others the National Infornation and Technology Authority (NITA), the National Forestry Authority (NFA) and the National Agricultural Advisory Services (NAADS).
Two senior cabinet ministers confirmed the development to the EagleOnline, and said the changes, once effected, would help streamline operations ‘since the heads of some agencies at times undermine the line ministers’. They added that the President had given them up to December to to come up with measures to back his directive.
“It is true the President has given that directive and it is important because like he guided us, some of these agencies take a share of the budget but one wonders what percentage they contribute to the budget and therefore, it is important that there is harmonization and value for money in government departments,” one of the ministers, who preferred anonymity, said.
Further, the sources said, most of the agencies have continuously hiked salaries and other emoluments for their top executives and board members, while there is less input on ground.
“The President is also concerned that some of the agencies run their work without the involvement of parent ministries since they derive powers from Ministry of Finance and it is one of the reasons he wants them back to their parent ministry for those that will not be dissolved,” the other Minister, also speaking on condition of anonymity, said.
It should be recalled that some of the top bosses of the government departments and agencies have been embroiled in spats, that at times spill over to involve the executive.
For instance, last year the Minister of Finance Matia Kasaija and his state minister for investment Evelyn Anite issued contradicting statements regarding the appointment of the board chairman of the Uganda Electricity Generation Company Limited (UEGCL), which at the time pitted Engineer Proscovia Njuki and Frank Katusiime. In the end Anite, who was on maternity leave when she opposed her boss’ decision took the day and Eng. Njuki was named the UEGCL board chairperson.
It is also said that some of the heads of the government DAs have been at loggerheads with the Secretary to the Treasury Keith Muhakanizi, for failing to absorb the funds allocated to their departments and agencies.
