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.
