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Finance Ministry freezes Kabale municipal accounts

Funds to Kabale withheld

Kabale, Uganda | THE INDEPENDENT | Works at Kabale Municipal council have been on a standstill following the freezing of its bank accounts by the Finance ministry.

An officer from the Municipal’s Finance department told URN on condition of anonymity that the move followed an error from the finance ministry related to financial transfers to facilitate the 2019/2020 financial year budget.

The officer explains that although Kabale Municipality submitted a budget worth two billion Shillings for the year, the ministry transferred seven billion Shillings to the  Municipal’s account. The matter is now being investigated.

Kabale Municipality Mayor Emmanuel Sentaro Byamugisha says that the municipality cannot undertake any activity that requires payments because no transaction can take place until the bank accounts are unfrozen.

Kabale Municipality Town Clerk Joseph Monday Bagonza says that the problem has not only been realized in Kabale municipality but even in other municipalities. He, however, adds that they have written to the office of the Director for Budget to ensure that the problem is rectified swiftly.

Jim Mugunga, the spokesperson of the Ministry of Finance says he was unaware of the development but added that freezing bank accounts cannot lead to stalling of works.



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