PAC Recommends Central Yard for Government Assets Awaiting Disposal

The Public Accounts Committee (PAC-Central Government) has proposed the creation of a centralized facility to securely store government vehicles awaiting disposal. This move is intended to safeguard these assets from the loss of parts and general deterioration, which currently occur when vehicles are kept in private garages.

The committee’s recommendation comes after the Auditor General’s report for the Financial Year 2024/2025 highlighted losses totaling Shs716 million from asset disposals, including vehicles, by the Office of the President.

During a meeting with officials from the Office of the President, PAC members pointed out that the practice of storing vehicles in private garages leads to inadequate monitoring, resulting in missing parts and a decline in asset value. Hon. James Waluswaka suggested utilizing government land in Kyambogo to create a dedicated yard for all public institutions.

Furthermore, concerns were raised about potential manipulation in the disposal process, with allegations of vehicles being undervalued or sold to connected individuals. The committee also questioned why the Office of the President retained 11 vehicles approved for disposal, citing unfavorable reserve prices.

Discrepancies in asset valuation were also a point of contention. The committee noted that the Office of the President valued its non-current assets at Shs4 billion, while an external valuation placed their worth at Shs9 billion. PAC emphasized the importance of using market value for accurate depreciation calculations.

In response, the committee directed the Office of the President to ensure accurate reporting of asset depreciation and valuation in its financial records.

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