Jinja Hospital Queried Over Shs1.2B Water Bill Payment Beyond Budget Allocation

Lawmakers have put top officials from Jinja Regional Referral Hospital on the spot over the hospital’s controversial decision to spend Shs1.2 billion to clear long-standing water arrears despite having been allocated only Shs68 million for that specific expenditure during the 2023/2024 financial year.

The officials, led by Hospital Director Dr. Alfred Yayi, appeared before the Public Accounts Committee (Central Government) of Parliament on Tuesday, 22 July 2025, to answer queries raised in the Auditor General’s report for the year under review.

The committee session, chaired by Vice Chairperson Hon. Gorreth Namugga, raised serious questions about potential financial mismanagement, diversion of funds, and failure to seek proper authorization for the excess expenditure.

MPs Question Source of Funds and Budget Compliance

At the heart of the inquiry was the glaring mismatch between the hospital’s allocated utility budget and the amount spent to clear National Water and Sewerage Corporation (NWSC) arrears.

“We actually applaud your creativity in trying to save lives in Jinja City and beyond—but we need transparency,” said Hon. Namugga. “Where exactly did you get the money? Which budget votes did you cut? If you used funds from the private wing, say so.”

MPs expressed concern that this situation could reflect either unauthorized reallocation of funds or poor financial planning, both of which undermine public accountability. They demanded a detailed breakdown of how the hospital financed the payment and whether it had obtained clearance from the Ministry of Finance, Planning and Economic Development.

10-Year Arrears and Continued Under-Budgeting

According to the Auditor General’s report, the hospital has accumulated water arrears exceeding Shs3.7 billion over a 10-year period, drawing questions about institutional oversight and long-term financial planning.

“So National Water and Sewerage Corporation is that lenient that you have been consuming water for over 10 years without payment? How did you manage that?” asked Namugga, clearly astonished by the scale of the debt and duration of non-payment.

MPs further criticized the hospital administration for consistently under-budgeting for utilities.

“It seems you are the ones creating these financial problems,” said Hon. David Karubanga (NRM, Kigorobya County). “If you need Shs90 million and only budget for Shs30 million, where do you expect the shortfall to come from?”

Incomplete Explanation and Request for Time

In his initial response, Dr. Alfred Yayi cited support from a USAID-funded initiative known as G2G (Government-to-Government) as a potential funding source. He explained that the programme reimburses the hospital based on performance milestones, and these funds could be allocated towards priority areas such as utilities.

However, this explanation was deemed insufficient and lacking in detail by the committee.

“We have not fully addressed the specific issue raised. We request a few hours and will respond by the end of the day,” said Dr. Yayi, requesting time to compile more precise information on how the Shs1.2 billion was mobilized.

Persistent Oversight Gaps Raise Broader Questions

Hon. Victor Nekesa (UPDF Representative) questioned how the budgeting and arrears issue has been allowed to persist despite the hospital submitting its annual budgets and receiving public funds.

The case has now raised broader concerns about the management of public hospitals, particularly around the funding of utilities, oversight from the Ministry of Health, and reliance on external donors for core expenditures.

While members of the committee recognized the essential services the hospital provides, they stressed the need for financial transparency, prudent budgeting, and stronger institutional controls.

A Call for Accountability and Systemic Reform

The committee is expected to review the detailed response from Dr. Yayi and his team by the end of the day. However, the situation has once again highlighted the fragile financial management systems in Uganda’s public health sector, especially in regional referral hospitals that serve as vital care centers for vast populations.

As pressure mounts on government institutions to demonstrate accountability, the Jinja Hospital case could set a precedent for scrutinizing off-budget expenditures and the use of donor reimbursements.