Delayed Payment Of Water Bills Undermining Critical Public Service, Accumulating Arrears: DST Ocailap Tells Accounting Officers.
Drake Nyamugabwa
In August 2024, the National Water and Sewerage Corporation (NWSC) of Uganda cut off water supply to the police and prisons due to unpaid water bills:
The Ministry of Finance, Planning, and Economic Development released funds to the police and prisons to clear their water bill arrears, but the funds were not transferred to NWSC by August 4, 2024.
NWSC explained that it didn't want to cut off the water supply, but it needed to clear large bills to provide services to the public. NWSC has to pay Umeme (the power supplier), purchase chemicals to treat the water and pay its workers.
NWSC demanded payment from government departments including the police and prisons, noting that only partial payments had been made from them, to a tune of over 81 billion shillings from different entities, which has been accrued in unpaid water bills.
The Deputy Secretary to the Treasury (DST) Patrick Ocailap has advised Accounting Officers to prioritize clearing outstanding water bills from their respective votes within the funds released to them each quarter.
In a circular to all Accounting Officers, Central Government Votes, on payment of water bills for FY 2024/25, the DST said the management of National Water and Sewerage Corperation continues to raise the issue of delayed payment of water bills by Gov't Ministries, Departments, and Agencies (MDAs).
"This Ministry through various circulars, has advised you to ensure adequate budgeting and timely payment of utility bills. Delayed payment of the bills leads to accumulation of arrears, disconnection of water supplies and disruption of critical public services” he said
The DST said going forward, the finance ministry will strictly enforce the requirement as part of the process for approval of the Accounting warrants on the Integrated Financial Management System (IFMS).
The ministry analysis shows that this FY 2024/25,a total of Shs 61.75 billion was allocated for water bills of which Shs 17.29 billion was released in the first quarter (Q1) and in the second quarter (Q2), Shs 29.4 billion (25% of the approved budget) has been released for the same purpose (water-item 223006).
