Parliament Committee Recommends Central Yard for Government Assets Awaiting Disposal

The Public Accounts Committee (PAC-Central Government) has urged the Ministry of Works and Transport to establish a dedicated central yard for storing government vehicles that are awaiting disposal. This move is intended to safeguard these assets from deterioration and the pilfering of parts, which currently occurs when vehicles are kept in private garages.

The committee’s recommendation came after a review of the Auditor General’s report concerning the Office of the President for the 2024/2025 financial year. Officials from the Office of the President appeared before the committee, led by Secretary Haji Yunus Kakande.

Hon. James Waluswaka highlighted that keeping vehicles in private garages leads to the loss of valuable parts and overall depreciation. He suggested utilizing government land in Kyambogo to create a central disposal yard for all public institutions. Waluswaka also warned that disposal processes are susceptible to manipulation, citing instances where vehicles with good resale value are undervalued and sold to connected individuals.

PAC also questioned the Office of the President’s decision to retain 11 vehicles approved for disposal, reportedly due to an unfavorable reserve price. Committee chairperson Hon. Patrick Nsamba pressed officials on why these assets, earmarked for sale, were being kept.

Further scrutiny was placed on discrepancies in the valuation of the Office of the President’s non-current assets. The Auditor General noted a Shs4 billion valuation, contrasting with an external valuation of Shs9 billion by the Accountant General. Hon. Ferigo Kambale advised using market value for non-current assets to avoid distorting depreciation figures.

Despite explanations from Assistant Commissioner Julius Kakoraho, the committee remained unsatisfied. Nsamba directed the Office of the President to ensure accurate reporting of asset depreciation and valuation in its accounts.

Source: https://www.parliament.go.ug/news/4663/pac-calls-central-yard-govt-assets-awaiting-disposal