Speaking at the Annual Bankers Conference at Serena Hotel this morning, Mweheire said the government arrears have now exceeded one trillion Shillings and advised that Ministry of Finance should put in place mechanisms to clear all the arrears on time.
Parliament has directed the Auditor General to conduct a special audit to ascertain the performance and use of the US Dollars 200 Million loan acquired from PTA Bank by Finance Ministry. Finance Minister Matia Kasaija is under fire together with the Secretary to the Treasury Keith Muhakanizi for misleading Parliament and obtaining the loan from the East and Southern African Trade and Development Bank PTA by false pretence.
It is reported that after the loan application was rejected by Parliament on January 7, 2016, the Ministry of Finance amended the objective of the loan to indicate that money was urgently needed to procure medical supplies for the country. It was subsequently approved three months later.