Uganda Revenue Authority (URA) is once again in the spotlight after Parliament’s Public Accounts Committee on Commissions, Statutory Authorities and State Enterprises (PAC-COSASE) accused the tax body of financial recklessness and disregard of the law in handling billions of taxpayers’ money.
The latest revelations from the Auditor General’s 2024 report revealed irregularities in URA’s management of appropriated funds. By June 2023, URA had a cash balance of Shs46.6 billion on its expenditure account, of which Shs4.3 billion was not returned to the Consolidated Fund within the legally required timeframe. Instead, the money was utilized months later, contravening the Public Finance Management Regulations of 2016.
“The usage of expired appropriations contravenes the law, distorts government planning initiatives, and overstates the entity’s budget,” the Auditor General warned.
In the following year, the problem repeated itself. As of June 2024, URA held another Shs26.6 billion on its expenditure account but failed to transfer it to the Consolidated Fund by October 30th, as required by law.
While appearing before PAC, URA management blamed the irregularity on a garnishee order of Shs26.2 billion slapped on the Authority by the High Court in favour of businessman John Imoniroguho after a protracted tax dispute that had dragged on for over two decades.
But MPs were unconvinced. Despite the garnished Shs26.2 billion, there was Shs4.3 billion remaining after the audit process, which was not garnished and could therefore have been transferred. The entity’s retention of the amount was irregular and may have deprived other entities from access and use of the same funds in addition to distorting planning,” the Committee observed.
The Committee also raised eyebrows over URA’s Alternative Dispute Resolution (ADR) process, noting that it is chaired and supervised by the Commissioner General, the very office whose assessments are often under dispute.
“This compromises the independence of the process,” PAC said, recommending legislative reforms to make ADR impartial and effective.
The report concluded that URA’s handling of expired appropriations not only undermines fiscal discipline but also deprives the government of much-needed funds for service delivery.
PAC has now recommended that URA strictly comply with Regulation 17 of the PFMA by returning all unutilised balances to the Consolidated Fund by July 31st of every year.
“Failure to do so will continue to undermine credibility in public financial management and erode confidence in URA’s stewardship of national resources,” the Committee warned.
