{UAH} AUDITOR GENERAL UNCOVERS FRESH ROT IN MANAGEMENT OF NAKIVUBO STADIUM

Cash receipts are written using pencils

Stadium lacks a substantive Board of Directors

Board Members run the day-today operations of the stadium

Stadium management relies only on casual employees

2 Board of Trustee members are the only signtaries to Stadium Bank Accounts

Management does not have a list of Stadium's assets and Properties

More details can be got from today's CBS 88.8 fm 9.00AM news bulletin   as indicated below;

AUDITOR GENERAL UNCOVERS ROT IN NAKIVUBO STADIUM MANAGEMENT

 

 

 CBS                                           9.00am           6th March 2015

 

The Auditor General has uncovered rot in management of Nakivubo stadium leading to loss of over 900 million shillings.

 

This is contained in the latest Auditor General's report to the Parliament's Public Accounts Committee for the 2012/2013 financial year.

 

According to the report, the rot emanates from the Ministry of Education and Sports failure to appoint a substantive Board of Directors with the approval of Cabinet to supervise the operations of the Stadium management as required by the Government standing orders.

 

Sources said that lack of the Board of Directors had led to mismanagement of Stadium assets and properties contrary to the Principles of good corporate governance which require that there is separation of Board and management responsibilities.

 

The report noted that the Board Chairperson and two members of the board are signatories to the Trust bank accounts and are involved in the day-today operations of the Trust contrary to the stipulated Government standing orders.

 

The Auditor General's report further shows that for example, it was the Chairperson of the Finance Committee of the Stadium's Board who approves payments without any further scrutiny from her superiors leading to fusion of responsibilities.

 

The Auditor General has asked the Ministry of Education and Sports to take up the matter to ensure that the board‟s functions are divorced from the routine

operations of the Trust and perform their rightful obligation of providing strategic

direction.

 

Other issues uncovered by the report include

 

Despite the Stadium's Board of Trustees signing a memorandum of understanding with Uganda Revenue Authority to clear its tax arrears of 865 million shillings plus penalities by May 2015, no sufficient evidence was shown to the Auditors to prove payment of the debt in installments as earlier agreed.

 

The report further indicates that there is a risk that the stadium's assets could be attached by URA to recover the taxes.

 

The Auditor General has also faulted the Stadium's Management of failing to provide key strategic policies like on management of fixed assets, risk management, fraud control and revenue and debt management policy that would enable the entity to operate efficiently

 

Absence of policies implies that management actions are not properly guided and may negatively affect the operations of the Trust.

 

 

The Auditor General John Muwanga's report further notes accuses the stadium Management for failing to provide tenancy agreements and the list of all the tenants operating from the stadium's space.

 

Other issues uncovered include the over expenditure of Stadium resources to cover expenses on Board meetings, transport costs and administration allowances worth 134 million shillings above the budgeted for allocations in the period under review.

 

The report notes that information on the Stadium's ledger books are written in pencil by the Accounts Assistant which provides an opportunity to alter the data for other interests.

 

 

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