To ensure that COVID-19 response cash and asset donations are not used to burnish personal lifestyles of handlers, government has issued tough guidelines laying out strict accountability procedures.
In an April 17 five-page letter to the chairperson of The National Response Fund to COVID-19 team, Office of the Prime Minister (OPM), Keith Muhakanizi, the permanent secretary and secretary to the Treasury, said all cash donations shall be banked intact to the collection account under the OPM and all asset donations to government shall be "received and compiled by the OPM with a bi-monthly copy provided to The National Response Fund to Covid-19 team and secretary to the Treasury.
Muhakanizi said, "The OPM shall operate commercial bank collection accounts in any currency as authorized by the accountant general in accordance with Section 33 of the Public Finance Management Act 2015 (PFMA 2015). The signatories to the commercial bank collection accounts shall be the authorized officers in the OPM.
Since the National Response Fund to COVID-19 Team was constituted by President Museveni and announced on April 9, 2020, cash and asset donations have continued to pour in. President Museveni announced on Sunday night during his on-air update on the Covid-19 situation in the country, that the donations had totaled Shs 4.5 billion so far.
Many high profile companies and individuals have donated generously including the Kabaka of Buganda Ronald Mutebi (Shs 100m), Pepsi (Shs 760m), Ham Foundation (Shs 100m), NRM (Shs 380m), MTN, Uganda Breweries, Airtel Uganda, Japan Auto Motors and, Shell Vivo etc.
In his letter, Muhakanizi said the Office of the Prime Minister (OPM) shall issue "Treasury receipts for all received cash and cheque donations on the collection accounts in a commercial bank before transfer to Bank of Uganda."
Details of the collection accounts will be advised by the accountant general, he said.
"Any funds on the collection accounts shall be swept to the two CERF holding accounts (US Dollar and UGX) opened in Bank of Uganda on 15th and 30th of every month."
In case of any direct deposits of donations to Bank of Uganda from any other sources that have not gone through the above account, Muhakanizi said the Treasury shall receipt such deposits and consolidate them with other donations under the OPM accordingly for purposes of accountability.
For avoidance of doubt, he said the holding accounts in Bank of Uganda shall be Treasury accounts while the commercial bank collection accounts are OPM accounts. These form part of the Uganda Consolidated Fund.
"Both the OPM and the Treasury shall provide the National Response Fund to COVID-19 Team with bimonthly status of collections received in the collection accounts," he said.
The COVID-19 Team shall determine and recommend priority expenditure areas through OPM to Cabinet for approval.
"Once approval has been obtained from Cabinet, the Treasury shall transfer the respective approved funds through the normal GoU funds release processes to the relevant Accounting Officers for implementation."
Then the accounting officers shall be required to execute the qualifying COVID 19 activities or any other approved activities and maintain the relevant documentation for accountability and audit purposes.
Accounting officers and any other implementing agency shall be required to prepare and submit reports on usage of funds. And the OPM shall provide a reconciled bank statement and summary collections of donations received towards this fund to assist the audit process.
The auditor general is expected to carry out an audit of the COVID-19 funds in accordance with the National Audit Act 2008. Muhakanizi said guidelines for usage and distribution of consumable donations received in kind will be issued by the OPM. All consumable donations and any other inventories shall be allocated in accordance with issued guidelines and recorded in accordance with chapter 15 on inventories of the Treasury Instructions 2017.
The guidelines, Muhakanizi said are meant to prescribe the procedures to aid transparency and accountability for the donations towards COVID-19 Response Funds.
President Yoweri Museveni constituted the National Response Fund to COVID-19 Team under the OPM to coordinate money mobilisation efforts to fight the pandemic.
The National Response Fund to COVID-19 team includes; Emmanuel Katongole (chairman), Robert Kabushenya, Apollo Makubuya, Francis Kamulegeya, Kishor Jobanputra, Patrick Mweiheire, Bwoch Gustavas, Bishop Joshua Lwere, Aga Sekalala, Dr Ian Clark, Dr Francis Omaswa, Keith Muhakanizi, Dr Diana Atwine and Dorothy Kisaka.
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