Latest news with #financial mismanagement
Zawya
23-07-2025
- Health
- Zawya
Jinja Hospital officials grilled over Shs1.2 billion payment of water bill
Officials from Jinja Regional Referral Hospital have been tasked to explain circumstances under which they paid Shs1.2 billion to clear water arrears despite being allocated only Shs68 million. The hospital officials led by the Director, Dr. Alfred Yayi appeared before the Public Accounts Committee (Central Government) chaired by the Vice Chairperson, Hon. Gorreth Namugga on Tuesday, 22 July 2025 to respond to queries in the Auditor General's report for the financial year 2023/2024. The legislators were concerned that clearing of the water bill with an amount more than had been allocated amounted to diversion or mischarge of funds. The committee members wondered if the hospital administration had sought authorization from the Ministry of Finance, Planning and Economic Development. 'We actually applaud your creativity in trying to save lives in Jinja City and beyond but we need transparency. Where exactly did you get the money? Which budget votes did you cut? If you used funds from the private wing, say so', Namugga said. According to the Auditor General's report, the hospital has accumulated water arrears of over Shs3.7 billion in a 10-year period. MPs questioned why the hospital had failed to prioritise settling such a substantial domestic arrear. 'So National Water and Sewerage Corporation is that lenient that you have been consuming water for over 10 years without payment? How did you manage that?' Namugga wondered. MPs were also dismayed with the continued under budgeting for utilities by the hospital administrators. 'It seems you are the ones creating these financial problems. You cannot expect government to give you more money when you are under-budgeting. If you need Shs90 million and only budget for Shs30 million, where do you expect the shortfall to come from?' asked Hon. David Karubanga (NRM, Kigorobya County). UPDF Representative, Hon. Victor Nekesa questioned how such a persistent issue continues unresolved even though the hospital submits its budget. Dr. Alfred Yayi requested for more time to provide a comprehensive explanation regarding the source of funds used to clear part of the water arrears after his initial explanation citing a USAID-funded project, was dismissed as insufficient. 'We have not fully addressed the specific issue raised. We request a few hours and will respond by the end of the day,' Dr. Yayi said. He added that while the hospital receives funds from government, it also benefits from a USAID initiative called G2G which reimburses funds upon meeting certain milestones. According to Dr. Yayi, these reimbursements can be used for hospital priorities. Distributed by APO Group on behalf of Parliament of the Republic of Uganda.
The Guardian
21-07-2025
- Business
- The Guardian
New ‘powerful' water regulator to replace ‘failed' Ofwat in drive to ‘reset' sector
A new, 'powerful' water regulator should replace Ofwat, the Drinking Water Inspectorate and the Environment Agency to 'reset' a sector tarnished by scandals over sewage spills and financial mismanagement, a major review has recommended. The government is expected to adopt the recommendation for England and Wales made in the review it commissioned from Sir Jon Cunliffe, a former deputy governor of the Bank of England, which was released on Monday. Critics have said Ofwat has presided over a culture of underinvestment in infrastructure and financial mismanagement by water companies since its creation as the industry was privatised in 1989. Thames Water, the most troubling case for the government and the UK's largest water company, is loaded with £20bn in debt and struggling to stave off financial collapse into a special administration, a form of temporary nationalisation. Cunliffe's review suggested a new regulator, with powers to 'direct', or take control of, failing water firms. Speaking on BBC Radio 4's Today Programme, Cunliffe said Ofwat has 'failed' because 'for many years it didn't have the powers'. He added: 'To be blunt about it, it was directed by government to take a light touch to regulation.' The environment secretary, Steve Reed, also announced on Monday he would be taking up the recommendation in the report to create an ombudsman with legal powers to compensate consumers who are failed by the water industry, for example with taps running dry due to burst pipes and sewage leaks in gardens. The report found that there are just 58 members of staff charged with protecting the safety of the country's drinking water, because of civil service rules on headcount and pay. This means, the commission said, the Drinking Water Inspectorate in its current form may not be able to meet the 'challenges of the future'. The report also said the country is not protected from pollutants in water such as PFAs, or 'forever chemicals' and microplastic, and recommends legislative changes to address these and remove them from the water supply. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion It also recommends that bills are not raised dramatically, as they were in April and will be until the end of the decade, with the new regulator prioritising consistent investment in infrastructure so companies do not have to 'play catch up' and have to increase bills to urgently build or repair sewers and reservoirs.
News24
16-07-2025
- Business
- News24
Minister dissolves embattled RAF board amid governance chaos
The decision comes against the backdrop of public allegations of corruption and mismanagement by suspended CEO Collins Letsoalo. The minister requested an interim accounting authority and sought to expand the SIU's corruption probe. Letsoalo was suspended last month for allegedly refusing to attend a portfolio committee on transport meeting. Persistent governance failures and internal operations chaos at the Road Accident Fund (RAF) have prompted Transport Minister Barbara Creecy to dissolve the troubled entity's board. This comes days after the entity's suspended CEO, Collins Letsoalo, and acting chief investment officer, Sefotle Modiba, briefed the media on the governance crisis and financial mismanagement at the entity. Letsoalo was suspended last month for allegedly refusing to attend a portfolio committee on transport meeting but has since charged that he was targeted for cleaning up the entity. According to a statement issued by the department's spokesperson, Collen Msibi, the RAF governance challenges and concerns were further confirmed through internal oversight and regulatory engagements. Msibi cited the protracted and costly litigation pursued by RAF on the application of accounting standards, which has resulted in further strain on the entity's financial resources and capacity, as Creecy's reasons for firing the board. Msibi said the minister also pointed to the inconsistent and, at times, reckless handling of the suspension of the CEO that attracted a legal challenge and institutional uncertainty. He said Creecy had noted the frequent incurrence of default judgements against the RAF, exacerbating its contingent liabilities and weakening its financial sustainability. The minister lamented deep divisions within the board itself, evidenced by most resolutions being passed using casting votes, rather than consensus, reflecting a lack of cohesion in critical decision-making processes. She also decried the board's failure to fill at least two critical executive positions, those of chief claims officer and head of legal, which she said were critical to the mandate of RAF. Msibi said this had resulted in the loss of confidence in the board's ability to run the entity effectively. He said in response to these developments, Creecy has exercised her powers as an executive authority by undertaking interventions to safeguard the integrity of the institution and ensure continuity of operations. On 5 June 2025, the minister issued letters to the 11 members of the RAF board, affording them the opportunity to make representations regarding her intention to dissolve the board due to their failure to discharge their fiduciary duties effectively. The representations were received and have been duly considered. Consequently, the board has been dissolved. Collen Msibi He said a submission has been prepared requesting Finance Minister Enoch Godongwana to appoint an interim functionary as accounting authority in accordance with the Public Finance Management Act. Msibi said the proposed appointment was intended to prevent a governance vacuum while a new board was being constituted. A draft public advertisement has been prepared to commence the process of appointing a new board, ensuring transparent and merit-based selection in line with applicable legislation. To support the development of a sustainable operational and governance model, the minister has initiated the appointment of a panel of independent experts to review the RAF's business processes and propose actionable recommendations. Members of the panel will be announced in due course. Msibi He said, furthermore, a request had been made to the graft-busting Special Investigating Unit (SIU) to establish if the current investigation under Proclamation 44 of 2024 covered the events of the last three months and that if not, to formally request the expansion of the scope to cover these events. The response from the SIU in this regard is eagerly awaited. Minister Creecy has reiterated her department's commitment to continue to pursue all necessary measures to restore institutional stability and enhance the RAF's capacity to fulfil its statutory obligations to the public and ensure speedy and equitable access to the Road Accident Benefit Scheme for road accident victims. Msibi said the minister further stressed her department's intent to finalise the Road Accident Benefit Scheme Bill, which will introduce a no-fault system to make it easier for road accident victims to access the benefits without costly legal bills.
