Government has not allocated the Shs 5 billion the auditor general needs to conduct a specialised audit on the quality of construction works at two multi-billion dollar hydropower dams in the 2017/18 financial year.
The auditor general, John Muwanga, told parliament’s Finance committee on Friday that his office was asked to undertake a professional, real-time audit of the two dam projects, whose managers are facing misconduct charges.
To conduct the audit, which has been prioritized in the 2017 audit plan, Muwanga said the AG’s office requires Shs 5bn.
The 600MW Karuma and 183MW Isimba hydro electricity projects, estimated to cost about Shs 7 trillion, have been in the eye of the storm since last year following reports of shoddy works due to use of inferior grade of draft tubes and poor fabrication. The result was visible cracks on both dams.
While presenting his office’s Shs 49.3bn budget for the next financial year, Muwanga said the funds will be utilized to hire an international firm, given that the AG’s office and local audit firms do not have the capacity to conduct the audit.
Francis Masuba, the OAG accounting officer, said, “If we got this money, we would have to advertise and procure an international consultant for the audit. The price could even go higher.”
Masuba’s explanation followed concerns by Kumi county MP Charles Ilukor over “astronomical” figures for an audit. Muwanga added that the audit requires an engineering firm whose specialization is in tunnel dams. He said such firms are few worldwide.
Contacted by phone, the state minister for planning, David Bahati, told The Observer they are working on availing the funds to the AG’s office.
According to the AG, the engineering audit costs are estimated basing on the total cost of the project. The director for audit, in charge of forensic investigations and IT audits, James Bantu, says the audit will look at the quality of the infrastructure currently in place; the construction items that have been used; test the strength of what has been put out there and make a conclusive report.
Under its unfunded priorities for the 2017/2018 financial year, the auditor general needs Shs 100m to conduct a special audit on seedling distributions in western Uganda under the National Agricultural Advisory Services (NAADS), after previous audits identified risks.
Another Shs 100m is required to conduct civil works audits. At least Shs 1.15bn is needed for special audits on compensation and valuations for road construction works, and establishment of electrical transmission lines from previous audits.
The AG also asked for a separate allocation of Shs 2.5bn for training of staff in financial audits and specialized audit areas, but it was not provided for.
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