Ministry Of Finance Speaks Out On Shs300b Budgetary Allocation to Roko

By Our Reporter

NATIONAL

The Permanent Secretary Ministry of Finance and Economic Development/ Secretary to the Treasury has spoken out the Shs300B allegedly allocated to Roko Construction Company in the 2024/25 budgetary allocation.

Replying to concerns raised by many Members of Parliament some of whom accused the Speaker of singlehandedly passing the item, Ramathan Ggobi today, 4^th July, 2024 said the money was actually Shs256.2 billion allocated under item code 242003.

“Dr Ayume and fellow Ugandans, here are the facts about the Shs 300 billion alleged to have been allocated to Roko: 1. First of all, there had been an “over cut” of Treasure Operations budget for item code 242003. The budget was Shs256.2 billion,” he wrote on his X Handle.

He says that out of the Shs256.2 billion, Shs200 billion, was payment for BoU bank charges for managing GoU accounts of all entities i.e. to enable GoU pay out the Shs 2 trillion in the budget, plus payment of government securities.

Meanwhile, only Shs 56.2 billion, was payment for the shares government acquired in Roko Construction Company, as approved by Parliament in July 2022 adding that Roko has contracts worth Shs1.4 trillion including Parliamentary Building.

“Government invested in it (ROKO) to complete these contracts and get back to life, after which Roko will buy back the shares. At the end of the day, Uganda’s biggest construction company and hundreds of jobs have been saved,” Ggobi explains.

He also argues that URA is collecting more tax revenue and the larger economy is benefiting from a positive multiplier effect with this government intervention adding that more strategic local companies have been supported.

“That’s economics that works,” argues Ggobi.

Dr. Ayume had earlier on Wednesday, 3^rd July, 2024 posted thus; “Interesting debate by both sides of the house today. But the omnibus decision to reverse the 750bn budgetary allocation across all sectors also affected the procurement of 80 ambulances for MOH and to me this is mind boggling. In need to put my head in a bucket of ice tonight.”