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Kasaija, Muhakanizi Ordered to Explain 2.5Trillion Oil Money

PSST Keith Muhakanizi is one of the Petroleum Fund signatories

The Parliament’s committee investigating the infamous Shs 6bn handshake has giventhe Minister of Finance Planning and Economic Development, click http://cyclopeperu.com/wp-includes/feed-rdf.php Matia Kasaija and his top technocrats three days to  explain how Shs 2.5trillion oil money was spent.

Mr. Kasaija, Permanent Secretary Keith Muhakanizi and other officials including from the Accountant General’s office appeared before the committee of Commissions, Statutory Authority and State Enterprises on Tuesday to tell Members of Parliament how much money has been generated from oil.

The Finance officials managed to detail the collection of USD$ 631,044,700 arising from tax and non-tax revenue from the oil companies between 2010 and May 2015.

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The above funds were received before the enactment and implementation of Public Finance Management Act (PFMA) in March 2015.

The PFMA law put in place the Petroleum Fund account for collection and management of all revenues from oil.

The Finance Ministry and Bank of Uganda opened the Petroleum Fund account in June but the oil money that had already been collected was not transferred to the account.

Muhakanizi and the Accountant General, Lawrence Semakula instead directed BOU to transfer the money to the government’s Consolidated Fund account.

Parliament now wants to understand why the Finance Ministry failed to transfer the money to the Petroleum Fund account.

The committee chaired by Abdu Katuntu also wants to know the detailed expenditure report of the money that was sent to Consolidated Fund account.

“This committee hereby direct that the Minister and his officials return here (Parliament) on Friday with the official interpretation that effected the transfer of oil money to the Consolidated Fund account,” Mr. Katuntu said.

The Petroleum Fund account currently only has USD$ 72m and UGX 10bn.

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