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NITA on the spot for failure to refund Shs1.1 billion World Bank funding

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The Ministry of Finance has directed the National Guidance and the National Information Technology Authority Uganda (NITA-U) to refund Shs1.1 billion World Bank funding, Eagle Online has learnt.

In a letter dated 30th August, addressed to the Ministry of Information and Communication Technology (ICT) and the Executive Director of NITA Uganda, the Permanent Secretary to the Ministry of Finance who doubles as the Secretary to the Treasury, Ramathan Ggoobi, directed NITA-U to refund USD 304,089 (Shs 1.1 billion) to World Bank.

The Government of Uganda secured US$ 75 million (Shs286.4 billion) funding from IDA – World Bank to finance the Regional Communications Infrastructure Program (RCIP). The six-year program was designed, approved, and became effective on 26th May 2016.

Uganda became the eighth African Country to benefit from the program which aimed at helping address the region’s connectivity constraints. Other countries that have already benefited from the initiative include Kenya, Burundi, Madagascar, Rwanda, Tanzania, Mozambique, Malawi, and Comoros. A regional approach will help to mitigate the impact for landlocked countries which must rely on transiting traffic through neighboring countries and enhance the viability of infrastructure increasing the volume of traffic leading to reducing prices and improving regional affordability of broadband.

The program aimed to support the Government of Uganda in improving: coverage for IT infrastructure in the country; the delivery of public services by improving efficiency through government cloud infrastructure; Integration of Government IT systems; building capacity in the management of IT programs and projects; and improve policy and regulatory environment for ICT in the country.

According to documents received by Eagle Online, in July this year, Ggoobi directed NITA to refund $249,500 (Shs 952.7 million) to World Bank and declined.

“The funds were ineligible expenditures that were incurred under the Regional Communications Infrastructure Program during the payment for the Electronic Government procurement system,” Ggoobi said.

“The World Bank through a letter dated 5th August 2022 has also brought to my attention another ineligible expenditure of $ 54,589.19 under the same project for-miss procurement of 90 Laptops.”

He urged the Ministry of ICT and NITA to refund the funds to World Bank. “Please ensure that the refund is expedited to avoid suspension of disbursements under the portfolio which may affect other ongoing projects,” Ggoobi said.

Last week, Eagle Online exclusively reported about the brewing feud between the ICT and NITA officials over the Shs 771.5 billion funding from the World Bank. Two officials want to swindle $1 million (Shs 3.78 billion) and Shs 10 million before approval of the project. The corrupt nature has reportedly stopped the implementation of the project.

The financing is meant to expand access to high-speed and affordable internet, improve the efficiency of digitally enabled public service delivery, and strengthen digital inclusion in Uganda.

Eagle online contacted Florence Mukankusi, the communications manager of NITA Uganda however she couldn’t pick up nor return our calls.

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