Masindi District Local Government Secretary of Finance, Salama Kugonza yesterday revealed that the District Local government has failed to implement the cashless policy of collecting revenue despite its approval by the district council.
Kugonza said the Chief Administrative Officer wrote to the Minister of Finance Planning and Economic Development among others seeking guidance and expression of objection to the programme.
She said the conditions that the Ministry of Finance gave to district local governments to channel money to Uganda Revenue Authority were not favorable.
“This forced the CAO to write to the Permanent Secretary in the Ministry of Local Government on 29th last month. But until now, the district is yet to receive the feedback.”
This year, Masindi district council passed a resolution banning parish chiefs from collecting cash while collecting revenue and introduced the cashless policy where people pay revenue through mobile money.
The policy came after two parish chiefs in the district were arrested on accusations of non-remittance and under declaring.
The arrest followed findings of a field monitoring exercise led by Finance Committee Chairperson Salama Kugonza and District Revenue Officer Moses Kalyegira in the lower local governments.
During the exercise, it was established that the Parish Chiefs took long to remit the revenue leading to misuse of funds and under-declaration.
The findings indicated that Richard Bamuleke, the Nyabyeya Parish Chief had never remitted any money to the sub-accountant since June 2017, a delay which resulted into mismanagement of Shs 2,700,000 which had been collected in revenues.
The parish chiefs who were arrested include; Richard Bamuleke, of Nyabyeya parish in Budongo Sub County and Cate Kyarisiima, of Bikonzi parish in Bwijanga Sub County.
The Chiefs were arrested on the orders of Kanaginagi Ateenyi, former Secretary Finance Masindi district during a revenue mobilization meeting at the district headquarters.