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    The Committee scrutinised the Ministerial Policy Statements for Ministries of Defence and Internal Affairs.

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    Committee Report on Defence and Internal Affairs on Budget Estimates for FY 2017/18

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    The Committee scrutinised the Ministerial Policy Statements for Ministries of Defence and Internal Affairs.

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    © All Rights Reserved
    Download as PDF or read online from Scribd
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    284 views37 pages

    Committee Report On Defence and Internal Affairs On Budget Estimates For FY 2017/18

    Uploaded by

    African Centre for Media Excellence
    The Committee scrutinised the Ministerial Policy Statements for Ministries of Defence and Internal Affairs.

    Copyright:

    © All Rights Reserved
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    of 37
    PARLIAMENT OF UGANDA REPORT OF THE COMMITTEE ON DEFENCE AND INTERNAL AFFAIRS ON THE MINISTERIAL POLICY STATEMENTS AND BUDGET ESTIMATES FOR FY 2017/18 1,0 INTRODUCTION In accordance with Article 155 (4) of the Constitution of the Republic of Uganda, Section 13(4) of Public Finance and Management Act, 2015 and Rule 177 of the Rules of Procedure of Parliament, Sectoral Committees are mandated among other things to: i, Examine and comment on policy matters affecting Ministries and Departments under their jurisdiction and; ii, Examine critically Government recurrent and capital budget estimates and make recommendations on them for general debate in the House. In line with this mandate, I now have the honor and pleasure to present for your consideration and adoption the Report of the Committee on Defence and Internal Affairs in respect to the Ministerial Budget Policy Statements and budgetary provisions for FY 2017/18. The Committee considered the following Votes: Vote 004: Ministry of Defence Vote 009: Ministry of Internal Affairs Headquarters; Vote 120: National Citizenship and Immigration Control; Vote 144: Uganda Police Force; Vote 145: Uganda Prisons Service; Vote 305: Government Analytical Laboratory, and Vote 309: National Identification and Registration Authority. 2.0 METHODOLOGY The Committee scrutinized the Ministerial Policy Statements for Ministries of Defence and that of Internal Affairs. In addition, the Committee held meetings with the Political and Technical Leadership of: + Ministry of Defence; * Ministry of Internal Affairs Headquarters; a ’ * National Citizenship and Immigration Control; * Uganda Police Force; 0 v v 1|Pa Uganda Prisons Service; Government Analytical Laboratory; and National Identification and Registration Authority. The Committee further reviewed and analyzed the following documents: a) The Ministerial Policy Statements for the Ministry of Defence and that of Internal Affairs for FY 2017/18; b) Previous reports of the Committee on Ministerial Policy Statement for FY 2016/2017 and National Budget Framework Paper FY 2017/18 - 2022/2023. The report is organized in three (3) sections: Section A presents budget performance for the FY 2016/17 and proposed budgetary allocations FY 2017/18 for Vote 004 Ministry of Defence and that of internal affairs. Section B presents budget performance for FY 2016/17 and proposed budgetary allocations FY 2017/18 for all votes under the Ministry of Internal Affairs and Ministry of Defence. Section C presents the Proposed Budgetary Estimates for the respective Votes under the Ministries of Defence and that of Internal Affairs for consideration and approval. 3.0 SECTION A: VOTE 004 - MINISTRY OF DEFENCE 3.1 Ministry Mandate The mandate of the Ministry of Defence is to: 3.2 Compliance to NDP II ‘The Committee observed that the Ministry has developed strategic plan whicl Defend and protect the sovereignty and territorial integrity of Uganda; Cooperate with civilian authorities in emergency situations and in cases of natural disasters; Foster harmony and understanding between Defence Forces and Civilians; Engage in productive activities for National development. is aligned to the National Development Plan II (NDPII) however, there are several 2|Page aspects that are critical to the attainment of the NDP targets where the Ministry should put greater attention. These include: i, Lack of a clear mechanism to ensure that the Army actively and productively engage in primary, secondary and industrial production as a contribution to the objectives and targets under the NDP and attainment of Uganda’s Vision 2040. ii, Absence of a regulatory framework that can streamline and guide the engagement of the Army in Infrastructural Development Projects, such as the Standard Gauge Railway, among others. The Ministry reported that through revamping of NEC, the plan was to amend the NEC statute to provide for a regulatory framework under which infrastructural projects such as standard Gauge Railway could be undertaken; such efforts need to be fast tracked. iii, Lack of a clear policy and regulatory framework that can guide the implementation of the National Service System which is believed to have significant bearing on the ideological orientation of Ugandans in line with the NDP objectives and targets. 3.3 Gender and Equity Responsiveness In line with Section 13(15)g the Minister of Defence submitted the Ministerial Policy Statement for assessment by the Minister for Finance in consultation with the Equal Opportunity’s Commission and was rated 50% Gender and Equity Compliant, however, this score is lower than 88% attained in previous FY2016/17. The Committee notes that a lot more needs to be done to reduce on Gender and Equity disparities in the sector. It was also noted that a total of UGX 65m currently earmarked towards activities that have a gender and equity dimension js still too low to guarantee attaipment\ ler and equity responsiveness. e — Ba? - \t ow 3|/Page ~~ VN 3.4 Preliminary Budget Performance FY 2016/17 * The Committee observed that whereas the total budget approved for Vote 004 Ministry of Defence amounted to UGX 1,492.377bn of which UGX 410.393bn is wage, UGX 467.368bn is non-wage, UGX 138.995bn GoU development and UGX 475.222bn was External Development Financing, the Ministry benefited from a supplementary budget of UGX 60bn to cater for operational and classified expenditure shortfalls resulting into a revised budget of UGX 1,552.377bn. BUDGET PERFORMANCE FOR THIRD QUARTER FY 2016/2017 (UGX, Bns) Revised Actual Budget Category Budget _| Releases| Expenditure |Exp. Perf Wage 416.593| 320.100] 315.434 99%| Non wage 521.168| 386.927 378.947 98% Ext. Fin (AMISOM) 475.222[ 79.350 79.230) 100% Devt GoU 138,995| 72.882, 72.489) 99% Domestic Arrears 2.658| 2.658) 2.634 99% Pension Arrears. 3.185] _3.185) 2.645} 83%| NIR 0.400) 0.345 0.345) 100%| Totals 1,558.22 | 865.45 851.72 98% Table 1 shows that by the end of March, 2017 financial release performance was reported as follows: * Overall, revised approved budget was UGX 1,558.22bn out of which UGX 865.45bn had been released and UGX851.72Bn spent by the third quarter reflecting 98% expenditure performance. * Out of the wage budget of UGX 416.593Bn, a total of UGX 320.100bn was released and UGX 315.434Bn had been spent reflecting expenditure performance of 99%. * The approved budget for nonwage amounted to UGX 521.168bn out of which UGX386,927Bn was released and UGX 378.947Bn Aes spgnt reflecting HC * The approved GoU Development budget was UGX 138.995Bn out of which UGX 72.882Bn was released and UGX 72.489Bnwas actually spent hence performing at 99%. = External development financing (AMISOM) performed satisfactory at 100% by the end of the third quarter. 3.5 Vote 004 Ministry of Defence Budget Allocations FY 2017/18 (UGX, Bn) 2016/17 | Proposed ao Budget Category Approved _| 2017/18 | Share -Ve or +ve Recurrent | Wage 410.393 | 414.092 30% 3.699 N/ Wage 467.368 | 470.845 34% 3.477 Devt. GoU 138.995 | 138.995 10% 0 Ext.Fin 475.222 | 353.547 25% -121.675 Arrears 5.843 17.922 1% 12.079 AIA 0.4 LS. 0% ay Grand total 1,498 1,397 100% -101 * Total budget is projected at Shs.1, 397Bn reflecting a net reduction of UGX 101Bn compared to the approved budget. This is due to Shs.121.675Bn budget cut on the external finance (AMISOM) budget. * Wage and Nonwage is expected to increase by UGX.3.7Bn and shs.3.5Bn respectively. © Budget provision for Domestic arrears is UGX. 17.92Bn reflecting an increment of Shs.12.07Bn compared to the approved budget for arrears. © Overall, the respective shares of the vote total budget include: recurrent30%, Nonwage 34%, GoUDev't 10% Ext.Fin 25% and Arrears 1%. 3.6 OBSERVATIONS AND RECOMMENDATIONS 3.6.1 Persistent Supplementary Budget The Committee observed that each financial year, Ministry of Defence benefits from supplementary budget requests to cater for shortfalls in recurrent and classified expenditure. Under supplementary schedule No. 2 FY 2016/17, the Ministry has BT I The Committee re-iterates its earlier recommendation that Government; through the Ministry of Defence and that of Finance, Planning and Economic Development, should adequately provide for the requisite allocation under recurrent expenditure, and the committee on classified expenditure should | | carry out a thorough scrutiny on the classified expenditure budget which has increased overtime to avoid wastage and misuse of public resources. 3.6.2 African Union Mission in Somalia (AMISOM) Operations The Committee applauds the achievement of UPDF under AMISOM since its commencement in March 2007; notably under the mandate of United Nations (UN) and the consent of African Union (AU), Pacifying Somalia especially Mogadishu which had been abandoned and degrading the strength of Al-Shabaab both in Manpower and capacity. ‘The Committee was further concerned about the reduction of troops allowances by USD 200 from USD 1028 to USD 828; effective January 2016, yet the Ministry also deducts US$ 100 from each Officer to cater for preparatory expenses. The proposed reduction implies that the troops now receive only US$ 728 after deductions. The reduction of this allowance not only demoralizes troops but also affects the efliciency of the operations. In addition, UN and AU have not been quick to honour their promise to compensate or re-imburse country owned equipment lost due to depreciation or damage. The Committee was informed that there is a debt of US$ 10.6m for the period March 2007 to January 2009 but this has not been honored. The Committee therefore recommends as follows: Government should re-examine the terms and conditions relating to months after the adoption of this repo! Ex AMISOM operations and assess its performance in terms of costs, benefits to the Country and report ba jament fyithin 3 7 BY ii, Government should engage with the European Union (EU), UN and other stakeholders with a view to reinstate the original troop allowance levels since the current rate is way-below the risk exposure of our Soldiers while in operations. iii, Government should engage UN to pay $ 10.6m to compensate for the wear and tear of the equipment in line with the existing memorandum of understanding. 3.6.3 Domestic Arrears The Committee was concerned about the perennial accumulation of arrears under the Defence budget despite the commitment control system. Whereas the Budget Call Circular (BCC) directs all Accounting Officers to always ensure that utility bills have the first call on the budget under their ceilings, the current audited stock of domestic arrears stands at UGX 718.43Bn out of which UGX 109.658bn is for goods and services, UGX 72.3bn and UGX536.4bn is for land compensations and pension respectively. This implies that the BCC requirement may not be applicable in this case where the stock of domestic arrears is way above 50% of the Ministry's total annual budget. A total of UGX 17.922bn is being requested for to cater for domestic arrears in order to avoid accumulation. The Committee re-iterates its earlier recommendation that the Ministry should forth-with stop committing Government but instead prioritize payment for arrears going forward. Government should place a cap on accumulation of arrears and reprimand Accounting Officers who accumulate new arrear: BY A holistic approach to clearance of arrears should be implemented where by the current stock of domestic arrears should be recognized as part of public debt and cleared under treasury operations. 3.6.4 National Enterprise Corporation (NEC) ‘The Committee noted that while NEC was established in 1989 by an Act of Parliament as a commercial profitable Arm of the then National Resistance Army (now UPDF) with the objective of redeploying soldiers involved in the war for gainful employment and to produce goods and services for the Army aimed at improving the welfare of soldiers, its potential has not been exploited to-date. ‘The Committee was concerned that NEC was among the Public Corporations whose budgetary estimates were not laid before Parliament as required by Section 13 (11) () of the PFM Act, 2015. Consequently, it was not possible to ascertain the budgetary requirements, achievements to-date, planned activities and challenges being faced. Although, the Ministry of Defence had indicated that NEC requires re- capitalisation to boost its performance, without a status report, it may be difficult for Parliament to recommend this request. It was further observed that, total cumulative investment into NEC subsidiaries is UGX 40.88Bn however; all the 7 (seven) subsidiaries continue to make losses despite the sizeable government investment. In addition, the Committee noted that NEC has been operating without a Board of Directors since April, 2015 contrary to Section 6 of the NEC Act. In the absence of which strategic and policy direction of the company is greatly affected. The Committee recommends that the Minister for Defence should submit to Parliament a report on the status of NEC in terms of feasibility, performance, profitability and future strategic direction within 2 (two) months after the adoption of this Report to enable Parliament make a dg¢cisi the required impact. BT 3.6.5 Wage Enhancement for Lower Military Cadre The Committee observed that wage enhancement for the lower military cadres is unfunded. There is need to increase the wage for the lower cadres to equate them to that of a primary school teacher. This increment requires a total of UGX 87.594Bn to be implemented in 2 phases FY 2017/18 UGX 43.797Bn and the balance in FY 2018/19. The Committee recommends that government should identify and allocate UGX 43.797Bn for the 1:t phase wage enhancement and the balance of UGX 43.797Bn should be provided within the ministry’s budget ceiling of FY 2018/19 3.6.6 Construction of UPDF Referral Hospital in Mbuya ‘The Committee observed that the search for a contractor for the construction of a 250 bed referral hospital has taken 3 years since FY 2014/15. It was also noted that Parliament has cumulatively approved UGX 72.6Bn and currently, UGX 11.59Bn is proposed to commence the construction. The Committee was concerned about the slow pace the ministry is taking to construct the referral hospital which defeats the envisaged benefits of this hospital. The Committee recommends that the Ministry should fast-track the construction of the referral hospital to save government of huge expenditure resulting from treating soldiers locally and abroad. In addition, the Ministry should first demonstrate efficiency in the utilization of the UGX 40bn (the Ministry has accumulated for the project over the yeai 9|Page 3.6.7 Uganda Air Cargo Uganda Air Cargo Corporation (UACC) was created by the UACC Act (Cap 322) in 1994 with the mandate to establish and operate air transport services within and outside Uganda. The Committee noted that whereas UACC is expected to operate commercially and to be sustainable, the Corporation is currently faced with liquidity challenges attributed to the withdrawal of its Air Operating Certificate (AoC) and Operations Specifications (OPSpecs) license which affects its revenue collection as five (5) of its Aircrafts have been grounded. The Committee was informed that the operations of UACC had resumed and that it was expected to become viable in the near future. However, for FY 2017/18 and the medium term, Uganda Air Cargo is projected to be capitalized yet it is expected to raise revenue from its operations. A review of the 2014 Audit Report indicated that Uganda Air Cargo had a total of UGX 2.834bn as outstanding Debtors’ obligations to Uganda Air Cargo but this had not been recovered by end of June 2014. The Committee recommends that the Minister for Defence and that of Works should report to Parliament on the performance of Uganda Air Cargo with a view of ascertaining the current state of affairs as far as the commercial viability of this Corporation is concerned within 2 (two) months after the adoption of this report. 3.6.8 National Service The Committee appreciates Government proposal to introduce National Service. The Committee was informed that the National Service Program aims at inculcating among the Ugandan youths; the requisite knowledge, skills and values which will enable them contribute to the country’s socio-economic development as well as National Defence and Security. The Committee noted that Under NDP II, National Service is placed under the, Ministry of Defence since it has a military trainingcomponent and it is expected t boost the Reserve Forces’ strengths. It is antigit ie all Ugandan youth of age 10|Page fe 18 years and above will be required to undertake the National Service before they join Universities and other higher Institutions of learning. The Program will ensure that the youths acquire both military and vocational skills and it will be implemented in a phased manner. Government expects that the Program will be implemented as a shared responsibility between the Ministry of Defence; Ministry of Education, Science, Technology and Sports; and the President’s Office. The Committee noted that the success of this Program lies in proper conceptualization and planning. The Committee reiterates its earlier recommendation that Government, through the Ministry of Defence should fast-track the necessary program concept, policy and legal framework before implementation of the program to ensure maximum benefits to the Country. 3.2.9 Military Pension and Gratuity Backlog The Committee observed that the Ministry has pension and gratuity backlog amounting to UGX 357.9Bn however, this has remained entirely unfunded for a long time which demoralizes the beneficiaries. The Committee recommends that government should carry out a verification exercise of the claims against which funds should be found and allocated to clear Military pension and gratuity backlog to avoid desperate situations by the veterans. 4.0 SECTION B: VOTE 009 - MINISTRY OF INTERNAL AFFAIRS 4.1 Ministry Mandate The mandate of the Ministry of Internal Affairs is to provide a secure and peaceful environment for all Ugandans by keeping law and order; regulating movement of persons in and out of the country; providing forensic and scientific analytical services; ensuring, safe , humane treatment and rehabilitation of offenders; registration, regulation, monitoring and coordination of NGOs and implementation of the Amnesty law. The Ministry supervises five (6) Votes notably: i, Vote 009: Ministry of Internal Affairs Headquarters ii, Vote 144: Uganda Police Force ili, Vote 145:Uganda Prisons Service iv. Vote 120: National Citizenship and Immigration Control v. Vote 305: Government Analytical Laboratory (DGAL) vi. Vote 309 : National Identification and Registration Authority 4.2 Compliance to NDP II The Committee notes that whereas the successful attainment of Uganda’s Vision 2040 entirely lies in the successful attainment of NDP objectivities and targets, the Ministry of internal Affairs has not developed its own strategic plan which is aligned to the sector strategic plan and the NDPII. The Committee noted that there are several aspects which are critical to the attainment of the NDP targets that require urgent attention. These inchude: i, Delay in dispensation of justice due to delays in case investigation leading to case-back-logs; ii, Limited Police presence especially in the newly created and heard to reach districts and sub-counties; iii, Lack of an enabling law to protect and facilitate government witnesses, among others. The Committee feels it imperative that the Minister for Internal Affairs in collaboration with other key Stakeholders in the JLOS sector should put more attention to these key NDPII priorities and this should be reflected in the manner in which resources are allocated to the different Votes and Vote Programmes implemented by the Min’ d its Agencies starting in FY 2017/18. We fa VS 4.3 VOTE 009 Budget Performance FY 2016/17 Table 3: Budget performance for third quarter FY 2016/17 (UGX,Bn) Spent % % 2016/17 | ReleasedJuly- | July- Budget _| Release Budget Category _| Approved | March '17 March'17 _| Released | spent Recurrent | Wage 1.784 1.338 1,285 75% 96% NonWage| 10.996 6.834 6.24 62% 91% Devt. GoU 1.989 1.648 0.613 83% 37% Arrears 0.572 0.572 0.52| 100% 91% Total = 15.341 10.392 8.658 68% 83% Total approved budget for Vote 009 Ministry of Internal Affairs (MoIA) amounted to UGX 15.341bn of which UGX 1.784bn was wage, UGX 10.996bn is non-wage, UGX 1.989bn was Government of Uganda (GoU) development. By 31*t March 2016, the release performance was reported as follows: = Overall, a total UGX 10.392bn (68%) had been released out of the UGX 15.341bn approved. * Wage: A total of UGX 1.338bn (75%) had been released out of UGX 1.784bn approved. * Non-wage: A total of UGX 6.834bn (62%) had been released out of UGX 10.996bn approved. * GoU Development: A total of UGX 1.648bn (83%) was released out of UGX1.989 bn approved. " While GoU Development budget release over performed at 83%, there were absorption challenges during budget execution. Out of the UGX1.648Bn released, only UGX0.613Bn was actually spent by the end of third quarter. 7 Wa 13|Page = 4.4 Vote 009 Budget Allocations FY 2017/18 Table 4: MoIA Proposed Budget FY 2017-18 (UGX, Bns) FY 2017/18 2016/17 | Proposed Expenditure category Approved | 2017/18 _| Share -ve or +ve Recurrent | Wage 1.784 1.954 10% 0.17 Non-Wage 10.996 14.046 73% 3.622 Devt. GoU 1.989 1.259 7% -0.73 Arrears 0.572 2.073 11% 1.501 Total 15.341 19.332 100% 4.563 Table 4 shows that the total budget earmarked for vote 009 Ministry of Internal Affairs is projected to increase by UGX 4.563bn from UGX 15.341bn in FY 2016/17 to UGX 19.332bn in FY 2017/18. * Overall, the recurrent budget will account for 83% while the development budget will account for only 7%. * The wage allocation is projected to increase from UGX 1.784bn approved for FY 2016/17 to UGX 1.954bn in FY 2017/18/. = The observed increase in non-wage of UGX 3.622bn is allocated to the newly established classified expenditure item to cater for the Joint Anti-Terrorism Unit. = A total of UGX 2.07bn has been provided for Arrears in FY 2017/18. 4.5 OBSERVATIONS AND RECOMMENDATIONS 4.5.1 Operationalization of NGO Act, 2016 Parliament enacted the NGO Act, 2016 which establishes the NGO Bureau and other matters there-in. The total number of NGOs is estimated to be 12,400. Whilst NGOs receive funding directly from external financing which require monitoring and supervision to avoid possible macroeconomic risks as well as duplication of services, the Ministry requires UGX 7.98 1bn to enable the NGO Bureau commence; its operations in FY 2017/18; the bureau has the potential to generate NTR worth| UGX 10Bn. In addition, the NGOs registr: ao supply driven than demand i, The Committee recommends that Government earmarks at least UGX 5bn as a start-up fund to enable the NGO Bureau carryout critical activities next FY 2017/18. ii, Registration of NGOs should be demand driven and not supply driven. This should be determined at the point of registration to avoid redundancy and duplication of services. 4.5.2 Trafficking in Persons The Committee observed that government has not fully provided for activities related to curbing of trafficking in persons which requires an additional UGX 1.5bn. The Committee reiterates its earlier recommendation that UGX 1.5bn required for financing the effective implementation of Prevention of Trafficking in Persons Act be provided. 4.5.3 Demobilization, Resettlement and Re-integration of Reporters The Committee was informed that out of 27,500 reporters demobilized; only 8,875 reporters have been re-integrated. There is need to provide resettlement and socio- economic re-integration support to the remaining 18,625 ex-combatants. UGX 4.5Bn is required to implement the above activity in a phased manner beginning with 6,000 reporters. The Committee therefore recommends that government should find UGX 4.5Bn for resettlement and reintegration of reporters to avoid desperate situations of reporters. 4.5.4 Amnesty Commission Amnesty Commission was established by the Amnesty Act, 2000 with the mandate of bringing peace and reconciliation in Uganda. The Committee notes the need to continue dialogue and reconciliation with communities and the general public. In addition, the Committee noted that Part M{ of the S expired in May 2016. S | | 15|[Page Although the law requires the Minister of Internal Affairs to extend the time lines, this has not been done to-date. The Committee recommends that Government through the Minister of Internal Affair should ensure that the timelines are reviewed in advance to avoid operating outside the law. 5.0 VOTE 120: NATIONAL CITIZENSHIP AND IMMIGRATION CONTROL 5.1 Mandate of National Citizenship and Immigration Control Section 7 of the Uganda Citizenship and Immigration Control Act (Cap 66) of the laws of Uganda mandates the National Citizenship and Immigration Control (NCIC) to facilitate legal and orderly movement of persons to and from Uganda, verify and process Ugandan Citizenship, issue national passports and other travel documents, facilitate and provide a conducive immigration environment for foreign investment in Uganda, enforce national and regional immigration laws for the security and development of Uganda. 5.2 Preliminary NCIC Budget Release Performance FY 2016/17 Table 5: Release Performance as at 31st March 2017 (UGX, Bns) arse cnneoy | ete [acest |B, |Ra | oa NonWage | 10.338 749 5.572 72% 74% Table 5 shows that the total approved budget for Vote 120 NCIC amounted to UGX 127.25bn of which UGX 4.023bn was wage, UGX 10.338bn was non-wage, UGX 112.189bn was GoU development. By the end of March 2016, the, release performance was reported as follows: @ * Overall, a total of UGX 62.384bn (49%) had been released out of UGX 127.25bn approved. Out of the released amount UGX 57.129bn (92%) had been spent. = Wage: A total of UGX 3.288 (83%) had been released of out UGX 4.023bn approved. = Non-wage: A total of UGX 5.572bn (72%) had been released out of UGX 10.338bn approved. * GoU Development: A total of UGX 50.9bn (45%) was released out of UGX 112.18bn approved. 5.3 Budgetary Proposals for NCIC FY 2017/18 ‘Table 6: NCIC Proposed Budget FY 2017-18 (UGX, bns) FY 2017/18 Approved | Proposed Budget Category _| 2016/17 | __2017/18 Share ve or -ve Recurrent | Wage 4.023, 4.384 13% 0.361 Wage nee 7.837 23% -2.501 Devt. | Go) 112.189 |__ 8.933 26% =103.256 Arrears 07 1,046 3% 0.346 AiA 10.809 11.89 35% 1.081 Grand total 138.059 34.09 100% -103.969 Table 6 shows that the total budget is projected to reduce by Shs.103.96Bn from approved Shs.138.Bn to proposed Shs.34.09Bn. The reduction is mainly a resultant effect of the transfer of budget originally approved for Natio’ Identification and Registration Authority (NIRA) under National Citizenship an Immigration Control to newly created VOTE 309-NIRA. Budget for domestic arrears is expected to increase from Shs.0.70Bn to Shs.1.046Bn. A significant reduction of UGX2.5Bn is observed under the nonwage budget and is attributed to the general budget cuts across all government MDAs. Overall, the recurrent budget share will account for 36% while development budgd ye 5.4 OBSERVATIONS AND RECOMMENDATIONS 5.4.1 Boarder Control Management System The Committee observed that processes at the boarder points and ports of entry are manual, leading to long queues and there is a risk of loss of revenue due to many cash transactions at all points of entry and exit, The Committee was informed that the DCIC require UGX 10Bn to procure and install Boarder Control Management System (BCMS) to ensure entry point security, automation and integration of all immigration services including e-payment gateway. The Directorate expects to collect additional NTR amounting to UGX12Bn annually on e-visa applications if BCMS is implemented; however, the above budget requirement is not provided for in the proposed budget. ‘The Committee therefore recommends that UGX 10 bn be reallocated from Vote 309: National Identification and Registration Authority to Vote 120: National Citizenship and Immigration Control for the purchase and installation of Boarder Control Management System (BCMS) 5.4.2 Procurement of Blank Passports and Maintenance of Passport Issuance System The Committee was informed that the Directorate has deployed passport personalization machines at 7 (seven) sites internally and in foreign countries which need regular maintenance for continuous operations. It was further noted that issuance of passport alone generates over UGX20Bn to the National Treasury as NTR annually. Over the years, the annual demand for passports has increased by 50% from 100,000 to 150,000 booklets; the wear and tear of the passport issuance system has also increased. Additional UGX 4.6Bn and UGX 0.5Bn is required for procurement of 90,000 blank passports and maintenance of passpo: \ issuance system respectively. The Committee recommends that Government should rationalize funding and ensure an additional UGX 5.2bn is provided for procurement of blank passports and maintenance of the passport issuance system in order to guarantee citizens’ rights to access a passport and revenue collection in form of NTR. 8.4.3 Electronic Passport Issuance The Committee noted that whereas many countries have transited from Paper Passports to ¢-passports, Uganda is yet to achieve this. The Committee was informed that despite the fact that the Heads of EAC Partner States launched the New Electronic Passports during the 17% Ordinary Summit meeting and directed Partner States to commence issuance of e-passports by January 2017, Uganda has not. It was further noted that implementation of e-passport will save government annual expenditure on purchase of empty passport booklets and associated wear and tear of printing machines deployed internally and externally. The Initial activities for the establishment of E-passport infrastructure require UGX 28bn while full implementation requires USD 100 million, it has remained unfunded in FY 2017/18. ‘The Committee was further informed that Government was considering negotiating a Public Private Partnership (PPP) arrangement as an alternative to outright financing however this has taken a long time yet the legal framework on PPP is in place. The Committee therefore recommends that Government, through the Ministry of Finance, Planning and Economic Development should provide UGX 28Bn start-up funds to kick-start activities leading to the issuance of E- Passports in FY 2017/18. Alternatively, Government should fast-track the option of a PPP arrangement to ensure adequate funding to implement the directive by the EAC Heads of State. ¢ \ pe wes -19|Pap aA S + _ iF ge x SF 6.0 VOTE 305: GOVERNMENT ANALYTICAL LABORATORY (GAL) 6.1 Mandate To provide specialized scientific analytical and advisory services to foster administration of justice, private sector growth and ensure general public safety. 6.2 Strategic Objectives * To promote timely delivery of criminal, commercial and civil justice through the application of effective and efficient scientific analytical and investigative techniques. + To support private/ public sector competitiveness and enhance public safety through provision of specialized scientific advisory services. 6.3 Preliminary GAL Budget Release Performance FY 2016/17 ‘Table 7: Release Performance as at 31+t March 2017 (UGX, Bns Released Spent % % Budget Category aoe cee | duty Budget | Release "7 March'17 Released | spent Recurrent | Wage 0.759 0.569 0.426 75% 75% NonWage 1.237 0.935, 0.736, 76% 79% Devt. GoU 3.344 3.095 1,932, 93% 62% Total 5.34 4.599 3.094 86% 67% Total approved budget for Vote 305 Government Analytical laboratory amounted to UGX 5.34bn of which UGX 0.759bn was wage, UGX 1.237bn was non-wage, UGX 3.344 bn was Government of Uganda (GoU) Development. By 31st March 2016, the release performance was reported as follows: * Overall, a total UGX 4.599bn (86%) had been released out of the UGX 5.34bn approved. * Wage: A total of UGX 0.569bn (75%) had been released out of UGX 0.759bn approved + Non-wage: A total of UGX0.935 bn (76%){had been released out of UGX 1.237bn' approved. * GoU Development: A total of UGX 3.097bn (93%) was released out of UGX3.344bn approved. * While GoU Development budget release over performed at 93%, there were absorption challenges during budget execution. Out of the UGX3.09Bn released, only UGX1.932Bn was actually spent by the end of third quarter hence an expenditure performance of 62%. 6.4 Budgetary Proposals for GAL FY 2017/18 Table 8: GAL Proposed Budget FY 2017-18 (UGX, bns) FY 2017/18 2016/17 | Proposed Budget Category Approved |_2017/18 Share -ve or #ve Recurrent | Wage 0.759 0.759 8% 0 |Non-Wage | 1.237 2.987 33% 1.75, Devt. GoU 3.344 5.344 59% 2 Total 7 5.34 9.09 100% 3.75 Table 8 shows that the total budget earmarked for vote 305Government Analytical laboratory is projected to increase by UGX 3.75bn from UGX 5.34bn in FY 2016/17 to UGX 9,09bn in FY 2017/18 * Overall, the recurrent budget will account for 41% while the development budget will account for only 59%. * The wage allocation is projected to remain constant at UGX 0.759bn approved in FY 2017/18. * The observed increase in non-wage of UGX 1.75bn is allocated to purchase of laboratory consumables to reduce case backlog. * A significant increase in the GoU Development budget by UGX 2Bn is meant for purchase of modern scientific equipment and assorted office furniture bGevets \ 6.5.1 Wage enhancement The Committee was informed that Wage Bill and approved structure of GAL requires additional UGX 0.773Bn. Further information indicated that within only 2 (two) years, Government Analytical Laboratory has lost 12 (twelve) critical and key scientists who have left the entity to other National and International Institutions due to poor pay. The Committee recommends that Shs.0.773Bn be provided to motivate and maintain rare and specialized skills at the Directorate 6.5 OBSERVATIONS AND RECOMMENDATIONS 6.5.2 Non-Operational Regional Laboratories The Committee observed that DGAL embarked on construction and operationalization of regional laboratories. Mbale and Mbarara have been completed but not equipped; Gulu is due to be completed during FY 2017/18. however, it will still be non-functional. The Committee was further informed that the structures housing GAL were constructed in 1927 and would require complete overhaul. The Committee recommends that GAL should first construct its headquarters as opposed to renovation after which it should expand cautiously and strategically within the limited resources available. Proper planning should be at the core of the expansion policy and should be demand driven to avoid ies and wastage. redundancy of government fac: 6.5.3 Accreditation of GAL Laboratory ‘The Committee was informed that laboratory accreditation is a requirement in order to issue unquestionable testing results according to the international standards. Accreditation enhances acceptability of results during administration of justice. The total requirement of the accreditation process is UGX 1.8Bn planned i three ph s with the first phase requirement of UGXO.6Bn. 22|Page The Committee recommends that government should allocate UGX 0.6Bn for phase one of the GAL laboratory accreditation process. 7.0 VOTE 309: NATIONAL IDENTIFICATION AND REGISTRATION AUTHORITY (NIRA) 7.1 Mandate of National Identification and Registration Authority (NIRA) To create, manage, maintain and operationalize the National Identification Register by: * Registering all citizens of Uganda * Registering non-citizens of Uganda who are lawfully resident in Uganda * Registering births, deaths and adoption orders and issue appropriate certificates + Issuing National Identification Cards and Alien Identification Cards to all registered persons 7.2 Preliminary NIRA Budget Release Performance FY 2016/17 Table 9: Release Performance as at 31*t March 2017 (UGX, Bns) Released |Spent | % % Budget Category Aspe Suly- Suly- Budget eee March '17 | March'17 | Released | spent Recurrent | Wage 25 18.75 5.46 75% 29% NonWage| 52 18.01 456 35% 25% Devt. GoU 26.3 10.44 273 40% 26% Total 103.3 | 47.2 12.75 | 46% 27% Total approved budget for Vote 309 NIRA amounted to UGX 103.3bn of which/ UGX 1 Government of Uganda (GoU) Development. By 31s March 2016, the release .7Sbn was wage, UGX 52.0bn was non-wage and UGX 26.3bn wa: performance was reported as follows: * Overall, a total UGX 4.599bn (46%) had been released out of the UGX 103.3bn wo Fh. 7 W ss JiPage ee = Wage: A total of UGX 18.75bn (75%) had been released out of UGX 25.0bn approved. = Non-wage: A total of UGX18.01bn approved, (35%) had been released out of UGX 52.0bn * GoU Development: A total of UGX 10.44bn (40%) was released out of UGX26.3bn approved. * There were absorption challenges during budget execution out of UGX47.2Bn released by third quarter; only UGX12.75Bn was actually spent reflecting absorption of 27% of the released budget. The poor performance of the NIRA budget is on account of delayed recruitment of personnel and procurement process which challenged institutions’ capacity to fully utilize the approved budget. 7.3 Budgetary Proposals for NIRA FY 2017/18 Table 10: NIRA Proposed Budget FY 2017-18 (UGX, bns) FY 2017/18 2016/17 | Proposed Budget Category Approved | 2017/18 | Share -Ve or +Ve Recurrent | Wage 25, 25.06 27% 0.06 Non-Wage 52 42.16 45% -9.84 Devt. GoU 26.3 27.34 29% 1,04 Total 103.3 | 94.56 | 100% -8.74 Total budget for the Authority is proposed to reduce by UGX 8.74Bn from the approved UGX 103.3Bn to the projected UGX 94.56Bn.The reduction was maint on the nonwage category by UGX 9.84Bn, The respective percentage share of the proposed budget is as follows: Wage 27%, Nonwage 45% and Development 29%. folie Gy 24|Page —eeerrrtr~tr——..L._._—=«

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