THE REPUBLIC OF UGANDA

REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF

MINISTRY OF JUSTICE AND CONSTITUTIONAL AFFAIRS

FOR THE YEAR ENDED 30TH JUNE 2016

OFFICE OF THE AUDITOR GENERAL

UGANDA

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TABLE OF CONTENTS

LIST OF ACRONYMS .................................................................................................. iii

1.0 INTRODUCTION ............................................................................................ 12

2.0 BACKGROUND INFORMATION ........................................................................ 12

3.0 ENTITY FINANCING ....................................................................................... 12

4.0 OBJECTIVE OF THE MINISTRY ....................................................................... 12

5.0 AUDIT OBJECTIVES ....................................................................................... 12

6.0 AUDIT PROCEDURES PERFORMED .................................................................. 13

7.0 CATEGORIZATION AND SUMMARY OF FINDINGS ............................................. 14

7.1 Categorization of findings ............................................................................... 14

7.2 Summary of findings ...................................................................................... 14

Outstanding Court Awards, Compensations and other liabilities .................................. 14

8.0 DETAILED FINDINGS ..................................................................................... 15

8.1 Escalating contingent liabilities for Court awards and compensations ................. 15

8.2 Outstanding Court Awards, Compensations and other liabilities UGX.684,752,969 15

8.3 Accumulated interest on delayed settlements of court awards and Compensations ………….. ................................................................................................................ 16

8.4 Discrepancies in outstanding amounts at MOJCA and Treasury Operations (TOP) 18

8.5 Statement of Arrears of Revenue .................................................................... 19

8.6 Absence of a Policy Framework on the compensation of persons for property lost due to rebel activity ................................................................................................ 20

8.7 Budget under-funding .................................................................................... 21

8.8 Implementation of activities ........................................................................... 22

8.9 Lack of land titles .......................................................................................... 22

8.10 Staffing gaps ................................................................................................. 23

8.11 Non-payment of Human Rights related cases ................................................... 23

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LIST OF ACRONYMS

Acronym Meaning

CADRE Centre for Arbitration and Dispute Resolution

EDRMS Electronic Document and Records Management Systems

EFT Electronic Funds Transfer

FY Financial Year

GOU Government of Uganda

ICT Information & Communication Technology

JLOS Justice, Law and Order Sector

LPOs Local Purchase Orders

MDA Ministries, Departments and Agencies

MTEF Medium Term Expenditure Framework

MOFPED Ministry of Finance, Planning and Economic Development

MOJCA Ministry of Justice and Constitutional Affairs

NSSF National Social Security Fund

OBT Output Budgeting Tool

PFMA Public Finance Management Act, 2015

PPDA Public Procurement and Disposal of Public Assets Authority

PS/ST Permanent Secretary / Secretary to the Treasury

SG Solicitor General

SWAP Sector Wide Approach

TAIs Treasury Accounting Instructions

UCF Uganda Consolidated Fund

UGX Uganda Shillings

UPPC Uganda Printing and Publishing Corporation

URA Uganda Revenue Authority

URSB Uganda Registration Services Bureau

UTL Uganda Telecom Limited

AG Attorney General

TOP Treasury Operation

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REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF

MINISTRY OF JUSTICE AND CONSTITUTIONAL AFFAIRS

FOR THE YEAR ENDED 30TH JUNE, 2016

THE RT. HON. SPEAKER OF PARLIAMENT

I have audited the financial statements of the Ministry of Justice and Constitutional Affairs

for the year ended 30th June 2016. These financial statements comprise of the statement

of financial position, the statement of financial performance, and cash flow statement

together with other accompanying statements, notes and accounting policies.

Management Responsibility for the Financial Statements

Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and

Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is

accountable to Parliament for the funds and resources of the Ministry. The Accounting

Officer is also responsible for the preparation of financial statements in accordance with

the requirements of the Public Finance Management Act 2015, and the Financial

Reporting Guide, 2008, and for such internal control as management determines is

necessary to enable the preparation of financial statements that are free from material

misstatements, whether due to fraud or error.

Auditor’s Responsibility

My responsibility as required by Article 163 of the Constitution of the Republic of Uganda,

1995 (as amended) and Sections 13 and 19 of the National Audit Act, 2008 is to audit

and express an opinion on these statements based on my audit. I conducted the audit in

accordance with International Standards on Auditing. Those standards require that I

comply with the ethical requirements and plan and perform the audit to obtain

reasonable assurance whether the financial statements, are free from material

misstatement.

An audit involves performing audit procedures to obtain evidence about the amounts and

disclosures in the financial statements as well as evidence supporting compliance with

relevant laws and regulations. The procedures selected depend on the Auditor’s judgment

including the assessment of risks of material misstatement of financial statements

whether due to fraud or error. In making those risk assessments, the Auditor considers

internal control relevant to the entity’s preparation and fair presentation of financial

statements in order to design audit procedures that are appropriate in the circumstances

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but not for purposes of expressing an opinion on the effectiveness of the entity’s internal

control. An audit also includes evaluating the appropriateness of accounting policies used

and the reasonableness of accounting estimates made by management as well as

evaluating the overall presentation of the financial statements. I believe that the audit

evidence I have obtained is sufficient and appropriate to provide a basis for my audit

opinion.

Part “A” of this report sets out my opinion on the financial statements. Part “B” which

forms an integral part of this report presents in detail all the significant audit findings

made during the audit which have been brought to the attention of management and

form part of my Annual Report to Parliament.

PART “A”

Opinion

In my opinion, the financial statements of the Ministry of Justice and Constitutional

Affairs for the year ended 30th June 2016 are prepared, in all material respects, in

accordance with Section 51 of the Public Finance Management Act, 2015, and the

Financial Reporting Guide, 2008.

Emphasis of matter

Without qualifying my opinion, I draw your attention to the following matters, which have

been disclosed in the financial statements and are also included in part B of this report:-

Escalating contingent liabilities for Court awards and compensations

UGX.5,510,583,811,126

UGX.4,330,041,624,839 was recorded as contingent liabilities in cases against

Government as at 30th June 2015. This position has now escalated to

UGX.5,510,583,811,126 during the current year under review (an increase of 23%).

Under the circumstances and magnitude, there is a risk that the contingent liabilities

may jeopardize Government operations in case they crystalize.

Outstanding Court Awards, Compensations and other liabilities -UGX.

684,752,969,473

The Ministry had outstanding amounts in Court awards, Compensations and other

liabilities amounting to UGX.684,752,969,473 as at the close of the financial year.

The bulk of the liabilities comprised of unsettled court awards and compensations

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which amounted to UGX.680.83 billion. The delayed payment of these liabilities could

lead to penalties in form of interest and other related charges.

John F.S. Muwanga

AUDITOR GENERAL

KAMPALA

16th December, 2016

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REPORT OF THE AUDITOR GENERAL AND SUPPLEMENTARY INFORMATION

PART "B"

DETAILED REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS

OF THE MINISTRY OF JUSTICE AND CONSTITUTIONAL AFFAIRS FOR THE YEAR

ENDED 30TH JUNE, 2016

This Section outlines the detailed audit findings, management response, and my

recommendations in respect thereof.

1.0 INTRODUCTION

Article 163 (3) of the Constitution of the Republic of Uganda, 1995 (as amended)

requires me to audit and report on the public accounts of Uganda and all public

offices including the courts, the central and local government administrations,

universities, and public institutions of the like nature and any public corporation or

other bodies or organizations established by an Act of Parliament. Accordingly, I

carried out the audit of the Ministry of Justice and Constitutional Affairs to enable me

report to Parliament.

2.0 BACKGROUND INFORMATION

The Ministry of Justice and Constitutional Affairs is located at Plot 1 Parliament

Avenue, Queens Chambers. The mandate of the Ministry is to; “provide legal advice

and legal services to support the Government machinery and provide the legal frame

work for good governance”.

3.0 ENTITY FINANCING

The Ministry was financed by grants from Central Government totalling

UGX.71,893,435,219. The Ministry also collected UGX.259,194,538 from NTR and

miscellaneous revenue, bringing total revenue to UGX.72,152,629,757. The grants

revenue of UGX.71,893,435,219 constituted 80.4% of its approved budget estimates

of UGX.89,426,600,137.

4.0 OBJECTIVE OF THE MINISTRY

The objective of the Ministry is to provide legal advice and legal services to support

the Government machinery and provide the legal frame work for good governance.

5.0 AUDIT OBJECTIVES

The audit was carried out in accordance with International Standards on Auditing

and accordingly included a review of the accounting records and agreed procedures

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as was considered necessary. In conducting my reviews, special attention was paid

to establish whether:-

a. The financial statements have been prepared in accordance with consistently

applied Accounting Policies and fairly present the revenues and expenditures

for the period and of the financial position as at the end of the period.

b. All Ministry funds were utilized with due attention to economy and efficiency

and only for the purposes for which the funds were provided.

c. Goods and services financed have been procured in accordance with the

Government of Uganda procurement regulations.

d. To evaluate and obtain a sufficient understanding of the internal control

structure of the Ministry, assess control risk and identify reportable conditions,

including material internal control weaknesses.

e. The Ministry Management was in compliance with the Government of Uganda

financial regulations.

f. All necessary supporting documents, records and accounts have been kept in

respect of all Ministry activities, and are in agreement with the financial

statements presented.

6.0 AUDIT PROCEDURES PERFORMED

The following audit procedures were undertaken:-

a. Revenue

Obtained all schedules of all revenues collected and reconciled the amounts to

the Ministry’s cashbooks and bank statements.

b. Expenditure

The Ministry payments vouchers were examined for proper authorization,

eligibility and budgetary provision, accountability and support documentation.

c. Internal Control System

Reviewed the internal control system and its operations to establish whether

sound controls were applied throughout the period audited.

d. Procurement

Reviewed the procurement of goods and services under the Ministry during the

period under review and reconciled with the approved procurement plan.

e. Fixed Assets Management

Reviewed the use and management of the assets of the Ministry during the

period audited.

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f. Ministry’s Financial Statements

Examined, on a test basis, evidence supporting the amounts and disclosures in

the financial statements; assessed the accounting principles used and significant

estimates made by management; as well as evaluating the overall financial

statement presentation.

7.0 CATEGORIZATION AND SUMMARY OF FINDINGS

7.1 Categorization of findings

The following system of profiling of the audit findings is used to better prioritise the

implementation of audit recommendations:

N

o

Category Description

1 High significance Has a significant/material impact, has a high likelihood of

reoccurrence, and in the opinion of the Auditor General, it

requires urgent remedial action. It is a matter of high risk

or high stakeholder interest.

2 Moderate significance Has a moderate impact, has a likelihood of reoccurrence,

and in the opinion of the Auditor General, it requires

remedial action. It is a matter of medium risk or moderate

stakeholder interest.

3 Low significance Has a low impact, has a remote likelihood of reoccurrence,

and in the opinion of the Auditor General, may not require

much attention, though its remediation may add value to

the entity. It is a matter of low risk or low stakeholder

interest.

7.2 Summary of findings

No Finding Significance

8.1 Escalating contingent liabilities for Court awards and

compensations -UGX.5,510,583,811,126

High

8.2 Outstanding Court Awards, Compensations and other

liabilities –UGX.684,752,969,473

High

8.3 Accumulated interest on delayed settlements of court

awards and Compensations – UGX.175,376,776,109

High

8.4 Discrepancies in outstanding amounts at MOJCA and

Treasury Operations (TOP)

High

8.5 Statement of arrears of revenue – UGX5,869,000,000 Moderate

8.6 Absence of a Policy Framework on the compensation

of persons for property lost de to rebel activity

High

8.7 Budget under-funding – UGX.10,750,588,888 High

8.8 Implementation of activities High

8.9 Lack of land titles Moderate

8.10 Staffing gaps Moderate

8.11 Non-payment of Human Rights related cases Moderate

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8.0 DETAILED FINDINGS

8.1 Escalating contingent liabilities for Court awards and compensations UGX. 5,510,583,811,126

UGX.4,330,041,624,839 was recorded as contingent liabilities in cases against

Government as at 30th June 2015. This position has now escalated to

UGX.5,510,583,811,126 during the current year under review, by 27%. The trend of

rising contingent liabilities on court awards and compensations over the last four

years is summarized on table below;

No Financial Year

to

Contingent liabilities

UGX.

%Percentage increase from

previous year

1 30th June 2013 541,554,003,100 -

2 30th June 2014 4,295,304,082,625 693%

3 30th June 2015 4,330,041,624,839 0.8%

4 30th June 2016 5,510,583,811,126 27%

The contingent liabilities comprise of cases that have been filed against government

pending hearing, cases before courts under hearing and cases in which Government

has appealed against the court ruling. The contingent liabilities are determined from

estimated amounts of claims against government by litigants and the amounts are

used to determine the fees chargeable before the case is heard and the calibre of

Attorney General’s staff to whom the file is to be allocated.

Under the circumstances and magnitude, there is a risk that the contingent liabilities

may jeopardize government operations in case the liabilities crystalize.

The Accounting Officer noted the increasing trend of the liabilities and explained that

government had put in place a policy to decentralize court awards to MDAs. The

Ministry shall sensitize the MDAs on the implications of paying for court awards

arising from their omissions/commissions. This is expected to go a long way to

make them more responsible and accountable.

I await the outcome of management efforts.

8.2 Outstanding Court Awards, Compensations and other liabilities UGX.684,752,969,473 The Ministry had outstanding amounts in Court awards, compensations and other

liabilities totaling to UGX. 684,752,969,473 as at 30th June 2016. The bulk of the

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liabilities comprised of unsettled court awards and compensations which amounted

to UGX.680.83 billion, while the other liabilities amounted to UGX.3.92 billion. The

outstanding amount in Court awards and compensations has been accumulating over

the last five financial years. The table below shows the outstanding amounts in Court

awards and compensations at the end of each year for the last five financial years:

No Financial Year to Outstanding

Amount UGX.

%Percentage increase from

previous year

1 30th June 2012 54,009,997,832

2 30th June 2013 164,163,101,576 100%

3 30th June 2014 253,000,000,000 57%

4 30th June 2015 442,161,234,933 75%

5 30th June 2016 680,830,522,791 54%

The delayed payment of these liabilities leads to penalties in interest and other

related charges.

The Accounting Officer agreed with the observation and explained that government

has made a decision to have the affected MDAs pay their own liabilities with

effect from 1st July 2016.The MoJCA will be responsible for arrears that accrued in

the prior years. The Accounting Officer also indicated that it was important for the

MoFPED and Parliament to ensure that this policy is implemented, and that sufficient

funds are appropriated to enable the Ministry clear the arrears.

I advised the Accounting Officer to liaise with relevant authorities to ensure that the

financial obligations against Government are settled on a timely basis. In the

meantime I await the outcome of the effort of the MDAs to minimise court awards.

8.3 Accumulated interest on delayed settlements of court awards and

Compensations - UGX.175,376,776,109

According to Section 26 (2) of the Civil Procedure Act cap 71, court may in a decree

order interest at such rate as the court deems reasonable to be paid on the principal

sum adjudged from the date of the suit. The Court Awards and Compensations

Committee acts as an administrative arm to advise the Attorney General on which

files should be considered for payment and the criteria for considering the payment

of claimants is as follows; First in first out, high interest rates, small claims groups,

human rights cases, cases with on-going mandamus proceedings and other

deserving cases for instance medical emergencies, orphans among others.

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I noted that in several court cases ruled against Government by decision of court or

by consent of the Attorney General, court awarded interest ranging from 2%, 6%-

25% and even up to 40% in some instances. I further observed that as a result of

government’s failure to pay these court awards on time, the awards have

accumulated interest over time and in some instances the interest has exceeded the

principle award.

A review of a sample of files revealed cases that had not been paid or considered for

payment for close to 10 years after the award was done. I examined details of

sampled files with outstanding accumulated interest totaling UGX.175,376,776,109.

Some examples of the cases with high accumulated interest include;

File No. MA/192/2002 under the names of Stephen B. Rwehura and 1096 others

for a case registered in 1995, with a court judgement amount of

UGX.13,164,000,000 at 6% interest rate had accumulated interest of

UGX.17,497,904,400.

File No. HCCS/1/12/2004 in a case involving Southern Range Nyanza Ltd with a

judgement amount of UGX.8,760,756,112 at interest rate of 2% and interest had

accumulated to UGX.46,453,167,813.

File number C/545/2002 under the names of Mubangizi Patrick with court

judgement amount of UGX.552,800,000 with interest rate of 25% had accrued

interest of UGX.541,283,300.

The rate at which the Government is settling the debts makes it difficult to clear the

outstanding amounts on court awards.

The Accounting Officer explained that this was due to inadequate funding by

MOFPED. He further, explained that the Ministry shall continue lobbying for additional

funds to settle all outstanding arrears

I advised the Accounting Officer to liaise with the relevant authorities to ensure that

adequate planning is done to avail funds to amortize payments for cases with high

interest rates.

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8.4 Discrepancies in outstanding amounts at MOJCA and Treasury Operations

(TOP)

I noted that the settlement of claimants arising out of court awards is being done

simultaneously by both the Ministry of Justice and the MOFPED/Treasury Operations

(TOP) under mandamus orders. However, in some cases; the same claims have

been partly paid by both MOJCA and the Treasury. I also noted delayed reconciliation

of these payments and in some instances there were reconciliation issues at the

Treasury and the Ministry of Justice which could not be harmonized since the

payables ledgers are only maintained at MOJCA.

A review of a sample of files and payables schedules revealed discrepancy in the

total amounts outstanding for some claimants at the Ministry of Justice and

Constitutional Affairs and the one reported by TOP for the same claimants. Whereas

TOP indicated total amount payable as UGX.261,109,101,578, MOJCA reflected

UGX.86,331,220,017 resulting into a discrepancy of UGX.174,777,881,561. The table

below refers:

Name Amount TOP (UGX) Amount MOJCA (UGX)

Yovan Bwambale & 913 others V AGHCCS

No 660 of 2002

10,215,000,000 20,357,596,640

Lozio Masika Beatrice & 288 others from

West Bukonzo Kasese District; HCCS 10 of 2009

2,525,540,000 3,152,512,384

COMDEL FOREX Bureau V Attorney General;

HCCS 497 of 2012

223,306,000 0

Okello Remizo, Alaka Beno & Others V AG, HCCS No 31 of 2014

6,212,871,780 7,419,610,890

The Kamuswaga of Kooki V AG and ST; HCMA 810 of 2015 arising out of HCCS 608

of 2014

159,032,813,410 48,122,260,103

Mwebeiha Amatos V AG; HCMA 882 of 2015 arising out of HCCS 382 of 2015

74,173,538,788 7,279,240,000

Dr MAJ (RTD) Anthony Jallon Okullu V AG

HCCS No 383 of 2012

8,726,031,600 0

Total 261,109,101,578 86,331,220,017

I also observed that in the schedules of cases pending negotiations, TOP reported an

amount of UGX.69,534,088,048, yet amounts declared by MOJCA shows

UGX.73,963,143,233 resulting into discrepancy of UGX.4,429,055,185 on sampled

cases. The table below refers:

Name Amount TOP (UGX)

Amount MOJCA (UGX.)

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Kasozi Lawrence & 4 0thers 2,554,733,174 2,895,078,344

Intex Construction Ltd V AG; Arbitral Award

CAD/ARB No 14/2008

35,430,170,271 50,474,996,443

Adonia Tumusiime and Others V AG;HCMA 32 of

2012

19,590,523,200 7,456,090,118

Modia Investments U Ltd V PSST and AG; EMA 2590 of 2014 arising from EMA 1297 of 2014

arising from HCCS 210 of 2009

525,649,548 653,602,828

Sound Ranchers Ltd V Attorney General; HCCS 150 of 2015

8,228,011,855 7,996,375,500

Picfare Industries Ltd V Uganda Land Commission; HCCS No 542 of 2015

3,205,000,000 4,487,000,000

TOTAL 69,534,088,048 73,963,143,233

The schedule availed by the TOP was last updated on 14th October 2016 while that of

MOJCA was last updated on 30th June 2016.

I was therefore unable to confirm the actual outstanding court awards and

compensation liabilities. Besides I could not ascertain whether the correct payments

were made or accounts properly disclosed as arrears.

The Accounting Officer explained that the files are for cases which are pending

negotiations between MOFPED and the beneficiaries. MOJCA saw it prudent to

accrue interest on these cases since negotiations have not even commenced. The

discrepancy in figures of these cases is the accumulated interest accrued by MOJCA.

I advised the Accounting Officer to ensure that the outstanding court awards and

compensation liabilities are justified and verifiable to avoid inconsistencies.

8.5 Statement of Arrears of Revenue - UGX 5,869,000,000:

The Statement of Arrears of Revenue is a memorandum statement where revenues

still due to the Government are supposed to be recorded. During the financial year

ended 30th June 2016, the Ministry won cases and the Attorney General (AG) was

awarded costs totaling to UGX.5,869,000,000. The table below refers:

S/N Parties Cause of Judgment Amount

Awarded (UGX)

1 Attorney General versus Imperial

Royale Hotel

Breach of contract and

failure to host selected delegates during CHOGM

5,800,000,000

2 Misc. Application No. 01 of 2014;

Nabanja Sentamu Margaret T/A

Mawicha Electronics Makula Beauty Salon VS Mubende Town Council

Judicial Review,

compensation and costs

30,000,000

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3 CA No. 0037 of 2014 Alamiga Haruna

& 3 others VS Yumbe District Local Government

39,000,000

Total 5,869,000,000

This amount was however not recorded in the statement as required. Interviews also

revealed that the Government had won cases in previous financial years and the AG

was awarded costs which are still due to the Government.

The Accounting Officer explained that revenue from cases won by Government is

categorized as Non Tax Revenue. The Government policy on Non Tax Revenue is to

recognize it in the financial statements when it is received and not when it is earned.

I advised the Accounting Officer to adjust the financial statements to include

UGX.5,869,000,000 in the Statement of Arrears of Revenue.

8.6 Absence of a Policy Framework on the compensation of persons for

property lost due to rebel activity

Examination of the Ministry documents indicated that there are several compensation

claims arising out of different rebel and insurgent activities around Uganda in the

past.

I noted that the Acholi, West Nile Sub region, Teso and Lango war claims are

currently among the ones pending and contributing highly to the contingent liability

of the GOU. The table below indicates the potential contingent liability of

UGX.3,564,000,000,000 for some of the known cases currently pending:

Name Cause of Action Amount UGX.

Adyera Nobert (Acholi War

Claims)

Non-payment of compensation in

respect of animals looted by the NRA in Acholi Sub region (This is currently

under verification as per the Presidential directive)

79,000,000,000

Eotu Jeresome (Teso War

Claims)

Non-payment of compensation in

respect of animals looted by the NRA in Teso Sub region

350,000,000,000

Deylon Johnson (Lango

War Claims)

Non-payment of compensation in

respect of animals looted by the NRA in Lango Sub region

1,200,000,000,000

2nd Lango War Claims Non-payment of compensation in

respect of animals looted by the NRA in Lango Sub region

600,000,000,000

West Nile Claim Non-payment of compensation in respect of animals looted by the NRA in

35,000,000,000

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West Nile Sub region (notice of

Intention to sue)

2nd Teso War Claims Non-payment of compensation in respect of animals looted by the NRA in

Teso Sub region (Soroti High Court)

1,300,000,000,000

Total 3,564,000,000,000

I further observed that in a letter dated 1st August 2003, the Minister of Internal

Affairs was instructed by the Prime Minister, to develop a policy framework by 1st

September 2003 to govern the management of compensation of properties destroyed

by rebel activity.

I have not been availed with the copy of the said policy and therefore, I was not able

to establish the policy guiding the acceptance, consideration and payment of the

different claims in this category by Government. In absence of a Policy Framework, it

becomes difficult to determine the eligible communities for compensation.

Although the Accounting Officer explained that the draft policy framework for

compensations was available for verification, it was not availed to that effect. The

Accounting Officer further indicated that the cases listed were concluded in Courts of

Law and therefore not subject to the Policy Framework on compensations.

I advised the Accounting Officer to liaise with the relevant authorities to expedite and

formulate guidelines that shall set out controls and manage any concerns that arise

out of these claims.

8.7 Budget under-funding - UGX. 10,750,588,888

The Public Finance Management Act, 2015 Section 45(3) requires an Accounting

Officer to enter into an annual budget performance contract with the Secretary to the

Treasury which shall bind the Accounting Officer to deliver on the activities in the

work plan of the vote for a financial year, submitted.

During the year under review, the approved budget for the Ministry of Justice and

Constitutional Affairs amounted to UGX.89, 426,600,137. However, by the close of

the financial year, only UGX.78,676,011,249 had been received (representing 88% of

the budget) leading to a budget shortfall of UGX.10,750,588,888.

The shortfall in the releases partly affected implementation of planned activities and

also negatively impacted on the achievement of the Ministry mandate.

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The Accounting Officer agreed with the observation.

I advised the Accounting Officer to liaise with relevant authorities for adequate and

timely funding.

8.8 Implementation of activities

It was also noted that out of UGX.78,676,011,249 received only UGX.71,893,435,219

was spent, representing 91.3% of the total receipts for the period resulting into

unspent balance of UGX.6,782,576,030 that was returned to the Uganda

Consolidated Fund Account (UCF).

The Accounting Officer explained that the funds could not be utilized because

the TOTAL Arbitration proceedings were suspended to allow for amicable

settlement of the case. Secondly, the funds for recovery of costs awarded to

the Government in the Heritage Arbitration case could not be utilized

because the procurement process for external legal counsel could not be

concluded before the end of the financial year and funds for pensions amounting

to UGX.1.2 billion were erroneously sent to the Ministry and letters were written to

MOFPED to that effect.

I advised the Accounting Officer to ensure that all planned activities are implemented

on time.

8.9 Lack of land titles

The Ministry owns Land and Buildings where its Regional offices are situated such as

Mbale, Mbarara, Gulu, Arua and Staff Quarters in Moroto. However a review of the

Fixed Assets Register revealed that these properties were not recorded. It was

further observed that the value of land acquired was not recognized in the Financial

Statements for the Financial Year ending 30th June 2016.

The Accounting Officer explained that they did not have land titles and neither was

the land valued hence they had no basis for recognizing them in the Financial

Statements. The Accounting Officer further explained that the process of obtaining

land titles for all the Regional offices had stalled for lack of funds although now in

the process. Arua and Gulu land had been surveyed and Management has written to

the Land Boards to recommend the issue of titles.

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I advised the Accounting Officer to liaise with the relevant authorities and expedite

the process of acquiring the Land Titles for the mentioned properties.

8.10 Staffing gaps

I noted that the Ministry had 187 posts which are vacant. These included key posts

like Administrator General, Director Civil Litigation and Commissioner Civil Litigation.

Some positions were reported in my previous year’s report but no evidence of filling

the vacant posts has been registered yet. Staffing gaps affect the performance and

overall achievement of organizational goals and objectives.

The Accounting Officer explained that the Ministry has now promoted (3) three

Senior State Attorneys and (13) thirteen State Attorneys to the post of Principal and

Senior State Attorneys respectively. In August the Ministry recruited (6) Six State

Attorneys to fill vacant posts for the Regional offices and the post of Commissioner,

Directorate of Civil Litigation was substantively filled in November 2016.

The Accounting Officer further explained that the remaining vacancies shall be filled

in a phased subject to the availability of funds.

I advised the Accounting Officer to liaise with Ministry of Public Service to ensure

that the vacant posts are filled.

8.11 Non-payment of Human Rights related cases

A review of the outstanding liability of MOJCA revealed that the majority of unpaid

small claims arise out of Human Rights violations arising from instances of inflicting

physical violation of the rights of Ugandans victims by different state organs. I

further observed that some of these payments are as low as UGX 1,000,000 and on

some cases do not attract interest and had been pending since 2006. Table below

refers:

Judgment

/Approval

date

File Name File reference No. Judgment

Amount

Cost

fees

Interest rate

and effective

date

Cumulative

interest

Total

amount to be

paid

Balance

11/6/2012 Akwany Teddy UHRC GLU/ 40/2005 800,000 10% -

11/6/2012

326,666 1,126,666 1,126,666

11/12/2006 Bateganya

Ramanzan

UHRC /34/02 800,000 0 0 800,000 800,000

17/8/2011 Ekodeu Peter UHRC 24/05 400,000 0 6%- 17/8/2011 116,867 516,867 516,867

7/1/2015 Etot Francis UHRC/GULU/76/06 1,000,000 0 1,000,000 1,000,000

14/3/2014 Higyenyi Abbey UHRC 156/03 100,000 0 100,000 100,000

20/4/2015 Kikafunda Mubarak UHRC 98/2007 1,000,000 10% - 20/4/15 108,266 1,108,266 1,108,266

11/7/2014 Okello Mathew UHRC /G/129/04 1,000,000 1,825,000 10% - 11/7/14 188,611 3,013,611 3,013,611

27/9/2006 Olupot John Bosco UHRC 5/377/02 100,000 0 100,000 100,000

27/8/2010 Wagoli Annet UHRC 117/02 200,000 0 0 200,000 200,000

20/10/14 Wamaleyi Aminsi UHRC /J/ 53/07 930,000 0 930,000 930,000

Delayed payments deny justice to the affected parties.

The Accounting Officer explained that the cases of Human Rights Tribunals that have

not been settled are due to failure to trace the claimants. In this regard letters have

been written to UHRC to assist in tracing the claimants so that they can provide their

account details.

I advised the Accounting Officer to adhere to the criteria of paying off liabilities as

set by Court Awards and Compensation Committee.

19

APPENDIX I FINANCIAL STATEMENTS