The Ministry of Finance Planning and Economic Development has spoken out on the leaked internal memo, directing the Permanent Secretary/ Secretary to Treasury, Keith Muhakanizi to prioritize a few Sectors regarding the November – December cash flow.
Among the few prioritized Sectors is State House, Ministry of Defence and the Electoral Commission.
“Reference is made to a meeting in your office (PS/ST, Accountant General and Director Budget) regarding cash flow for November – December 2020,” reads the memo in part.
“It was agreed that given the cash position, only payment for the following votes/ payments should be made: State House, Ministry of Defence, payment of wages, salaries, pension and gratuity, statutory obligations under vote 130 and Electoral Commission. All other payments should be deferred until further advice from the PS/ST,” it added.
Speaking to ChimpReports on Friday, Jim Mugunga, the Public Relations Officer for the Ministry said that the memo didn’t imply that the Ministry had run out of money for its commitments.
“This is not to say, we have no cash and are avoiding to honour our commitments. During the onset of the COVID-19, the PSST issued similar guidance that prioritized expenditures. This Internal circular prioritizes for the period mentioned (November and December). It does not instruct anyone not to honour commitments but guides on the priorities,” Mugunga told ChimpReports.
“The Ministry of Finance makes quarterly releases against appropriated budgets to enable Ministries and Agencies operate effectively. The releases are possible because of inflows (resource envelope) that are prudently managed. It is against this background that continuous guidance is issued internally to shape our internal operations. As a principle, we remain committed to meet all our obligations in line with established processes and available resources,” he added.