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In the year under review the government paid commitment fees mounting to Shs 77.5 billion, a two percent drop from the previous year.
The Shs 31.6 billion of payments was a result of a loan that was obtained for the budget support.
However the commitment fees are paid for the debt that has been contracted but not yet disbursed.
Meanwhile Mr John Muwanga in his report puts the total amount of undisbursed loans at Shs 15.6 trillion approximately to 17 percent of the total public debt.
“ Government’s failure to draw down and low absorption of contracted government debt continues to attract high commitment fees and affect service delivery,” he said.
In addition other loans highlighted in the report to have attracted fees include a A Shs 355 billion for the construction of a 45 MW Muzizi hydropower plant . By the time of its cancellation last year the government had spent close to Shs 3.97 billion in commitments fees.
The Kampala Jinja express way project loan amounting to Shs 842 billion secured from the African Development Bank has already cost the taxpayers Shs 3 billion in commitment fees.
However the works of this project are yet to commence. According to the ministry of Finance and spokesperson Mr Jim Mugunga explained that before securing a loan the ministry ensures the readiness of the beneficiary entity or agency to utilise the funds.
The approval process for a loan is elaborate. It has to go through government wider approvals. It is initiated by the beneficiary agency, involves the sector and by the time it comes to finance, some appear work has been done and we go through finance systems,” he said.
The timely use of the funds which would avert the commitment fees is therefore incumbent upon the implementing entities.
Mr Mugunga explained further that the implementation of the funds can be derailed by other external factors.
Delayed utilisation of a loan he said can be best judged in a case by case basis. The AG recommended thus :” Government to identify and resolve any bottlenecks hindering the smooth implementation of projects and activities so as to increase its loan absorption rates.”
Meanwhile Mr Mugunga explained to the media that the permanent secretary to the treasury has now directed that no more project loans will be contracted without thorough complete and complete feasibility studies being undertaken
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![[dropcap]A[/dropcap] section of women in Bugongo parish and Nawangaiza parish in Nawandala Sub County, Iganga District have decried the near-impossible terms set for them to access GROW funds. They have now petitioned their woman member of parliament for Iganga Hon. Kauma Sauda Alibaawo to ask the government for revised terms and conditions. This is to enable them to benefit from the program. The disgruntled women accuse the implementers of the program of charging the money. They are also asking for their land titles and land agreements. They said that such properties are governed by their husbands. These, therefore want the government through their woman MP to intervene and revise the requirements for one to benefit. The women were on Wednesday at Namabwere primary school in Nawandala Sub County. They had gathered in their respective groups to receive over 300 chickens from Hon Alibaawo in her campaign to improve the livelihood of women in Iganga district. Each group was given 50 chicken as start-up capital in their journey to prosperity. Read what some leaders said; Ms Naigambi Lydia from Nawandala Trading Centre says, “They solicited money from us through opening bank accounts and depositing Shs80,000. They also asked for land titles and land agreements from us yet we don’t have such things. I was informed that I needed to have a business with a capital of Shs4m yet my capital was very small.” The chairperson Kisoboka Saving Group in Nawandala Ms. Nakagolo Faith said they were not able to join the program. This is given the many conditions attached. She also asked their woman MP to raise their concerns to the relevant offices. The MP condemned the mode of implementation of the program. She cited that it has turned to benefit the well-off class of women other than the intended group. She further asked the government to intervene saying the current strings attached to the programme are very tight to accommodate a common woman. GROW project is a Government of Uganda initiative that arose out of the need to respond to the needs of women entrepreneurs. This is especially those who want to grow their businesses, sustain their self-employment and create more jobs. Check Also; Iganga District NRM Leaders Urge Museveni To Fulfill Election Promises Of 2021 International Women's Day: Celebrating Progress Towards Equality](https://i0.wp.com/newslexpoint.com/wp-content/uploads/2024/11/Iganga-women-decry-tough-terms-to-access-GROW-funds-e1731738339732.jpg?resize=300%2C160&ssl=1)
