MICHAEL N
The Chief Administrative Officer for Ntungamo District, Kiza Fedelis, has revealed that the district local government is expected to return more than 2.6 billion shillings to the treasury due to incomplete works on several planned projects during the 2025/2026 financial year.
Speaking about the progress of the financial year, Kiza explained that part of the money to be returned includes over 690 million shillings that had been allocated for salaries of teachers at Kibatsi Seed Secondary School. According to him, delays in the recruitment and shortlisting process by the Education Service Commission affected the utilization of the funds.
Kiza noted that the shortlisted teachers were only recently invited for interviews, making it impossible for the district to use the funds for salary payments within the planned timeframe. He emphasized that the money could not be diverted to other activities because it had been specifically budgeted for teachers’ salaries.
He further explained that returning unspent funds to the government is part of ensuring financial discipline and compliance with public finance management regulations. Kiza said some members of the public often misunderstand the process, especially when projects are not completed within the expected timeframe or during the defect liability period.
According to Kiza, contractors are required to leave 5 percent of their payment during the six-month liability period after commissioning of a project, and such retained funds are returned to the treasury until the project is fully cleared.
Kiza added that once the liability period expires and the contractor fulfills all obligations, the retained funds are reclaimed from the treasury and paid back to the district for settlement. He clarified that the district does not lose the money permanently as some people believe, but rather follows the required government financial procedures.
