Management of Uganda Coffee developmentAuthority (UCDA) on Monday failed to convince parliament why they arbitrarilydiverted Ugx10bn outside what was budgeted.
UCDA bosses led by its managing DirectorHenry Ngabirano were facing Parliament's committee on Commission on StateAgencies and State Enterprises (COSASE) to explain how items budgeted for were affected due to diversion of funds.
According to the auditor general's reportfor year 2013, the UGX 10bn was expended by the officials at the Uganda CoffeeDevelopment Authority without the approval from the treasury as it is requiredby
Chaired by Kyadondo South MP IbrahimSemujju Nganda, committee members challenged UCDA to explain why it had usedthe funds for uses other than agreed upon.
While acknowledging that he didn't seekapproval from Permanent secretary to the treasury, Ngabirano said the money hadbeen used to run the authority projects as mandated by the law.
Cue in: Ngabirano: This Moneyâ€¦
He said that the mere fact it wasappropriated to them, they deemed it okay to spend it on different authorityactivities.
Some of the areas highlighted includetravel abroad to benchmarking value addition of coffee.
Ngabirano said that the money had not beenlost though they did not follow procedure.
Ngabirano revealed that the money was spenton buying coffee seedlings which were distributed to the farmers, paying rent,carrying out research for promotion of coffee in Uganda.
He however attracted criticism from the MPstasking him why he hadn't planned and budgeted for those items instead ofdiverting the money.