By Mulengera Reporters
In a troubling revelation, Uganda’s Auditor General recently flagged Ministries, Departments, and Agencies (MDAs) for accumulating unpaid water bills amounting to UGX 72.5 billion.
The findings, captured in the 2023/2024 audit report, paint a concerning picture of financial mismanagement within public institutions, threatening the sustainability of water services nationwide.
The report reveals that these unpaid bills make up 20% of the National Water and Sewerage Corporation’s (NWSC) receivables, which stand at UGX 355 billion. Some arrears have been outstanding for over two years, a situation that has severely constrained NWSC’s financial capacity and operational capabilities.
With limited funds, the utility company is struggling to expand water services, maintain infrastructure and meet its operational demands. The delay in payments from MDAs has significantly hindered the corporation’s efforts to deliver clean and safe water to Ugandans, particularly in rural and underserved areas.
The Ministry of Finance allocated UGX 12.8 billion in an attempt to clear part of the arrears, but the slow pace of disbursement has raised questions about the government’s commitment to resolving the issue comprehensively.
Despite several attempts by NWSC to engage MDAs and recover the funds, progress has been minimal. This financial impasse has forced NWSC to scale back its plans for infrastructure expansion and water service improvements, leaving many Ugandans in vulnerable areas without reliable access to clean water.
The Auditor General’s report warns that if this trend continues, it could worsen water access across the country, especially in regions already grappling with water scarcity. Clean and safe water is not merely a convenience for most Ugandans, but a necessity for survival. The continued failure by MDAs to pay their dues risks eroding public confidence in government institutions and leaving ordinary citizens to bear the brunt of service disruptions.
The delayed maintenance of water systems and stalled infrastructure projects are just some of the consequences already being felt on the ground.
The report recommends that urgent action be taken to address the issue. It calls for the Ministry of Finance to collaborate with NWSC in enforcing timely payments from MDAs and ensuring that adequate funds are allocated for utilities in future budgets.
Strengthening accountability mechanisms within MDAs is also critical to prevent similar occurrences in the future. The Auditor General further emphasized the need for NWSC to reassess its receivables management strategies to improve debt recovery and secure its financial stability.
This revelation serves as a stark reminder of the importance of prioritizing essential services. The failure of public institutions to meet their financial obligations not only undermines NWSC’s operations but also puts millions of Ugandans at risk. Access to clean water should be non-negotiable, yet the actions of these MDAs have jeopardized this fundamental right. The report underscores the urgent need for decisive action to avert a water crisis that could have far-reaching consequences for the nation.
