The Ministry of Trade , Industry and Cooperatives has defended its latest move to renovate Farmer’s House and continue using it other than renting new premises.
According to the ministry’s senior public relations officer, Irene Kiiza, whereas shs5 billion was approved in the 2021/2022 supplementary budget for renting of office space, they re-purposed it for renovation to achieve sufficient premises for the ministry and it’s departments.
“Farmers House, is a government building managed by Uganda Property Holdings and renovating it is far better than renting premises from the private people because it saves government lots of money,” Kiiza said.
“By renovating Farmers’ House, we shall continue saving government over shs7 billion that would go into renting per year.”
The Ministry of Trade in the first quarter of the financial year 2021/2022 requested for a supplementary budget from the Ministry of Finance to finance critical unfunded priorities including revamping cooperatives and improvement of the staff working conditions by securing accommodation to a tune of shs 5billions.
Whereas the funds were requested for in the first quarter, these were released at the end of the financial year in April 2022 and the Trade Ministry could not carry out its intended activities before the expiry of the financial year.
“When I looked at the options of renting, especially for the premises that had been shortlisted, they were very expensive. It would have required me to pay Shs7 billion with all my ministries, departments and agencies. At the moment, I pay Shs334 million per annum,” Geraldine Ssali, the Ministry of Trade Permanent Secretary told a parliamentary committee on trade recently.
“Having considered the above options, management felt it prudent to renovate the dilapidated ministry offices at Farmer’s House owned fully by the government of Uganda under Uganda Property Holdings Ltd.
This was based on the fact that the ministry was only paying a small and affordable service charge of shs11,800,000/= per month to Uganda Property Holdings Limited.
It was financially viable for the ministry to stay in its traditional home since the building has always been the traditional home of the cooperators in Uganda and still achieve improved working conditions to it’s staff,” she added.
Ssali however rubbished claims she violated the law in spending the funds, noting she had got clearance from the Ministry of Finance.
“Spending annually shs 5.08 million in rent every year, representing an increase of non-wage cost by 127.27% and 2.3 times the cost of the ministry’s wage bill alone. The increase in rent would not therefore be viable, nor sustainable in the face of budget cuts and rationalisation of government agencies to save public resources.”
“In drawing from the requirement of great skill and competences expected of an accounting officer, it would only be a wise decision to renovate as opposed to incur an annual expenditure of shs5.08 million rent every year.”
According to Geraldine Ssali, the monies for renovation were used for the benefit of government and not any individual and was certified by the Attorney General.
“The renovation works and the expenses made thereunder were legally spent and no such cases of diversion of funds would legally rise as the funds were spent as per their intended purpose.
It is also critical to note that the contractor for the renovation issued Ministry of Trade with a performance security as required by the contract, issued by Cairo Bank Uganda Ltd. The contract for renovations was also properly cleared by the Attorney General as required by law,” Ssali said.
“The accounting officer properly exercised her great degree of skill, competence and diligence in choosing to renovate as opposed to the expensive annual recurrent rent as expected under Section 45(2) of the Public Finance Management Act 2015.
Whereas it requires an accounting officer to exercise a great degree of skill and care, it is prudent that the accounting officer should be enabled to exercise a great degree of skill and diligence as opposed to being distressed for an activity wherein she conducted herself with a great degree of skill expected of an accounting officer under the law.”
