The operationalization of the newly created cities suffered a setback after parliament blocked re-allocation of their funding citing absence of a law to facilitate operations.
The new development came up today after a motion for parliament to allow the Finance Ministry relocate funds from Municipalities to cites was deffered pending an amendment of the existing law to allow transfer of funds.
The State Minister for Finance, Hon David Bahati, had moved parliament to allow the transfer of funds (by a resolution of parliament) to facilitate oprerationalization of the new cities since the annual budget for the current year was passed before they were approved.
The new cities include Arua, Gulu, Jinja, Mbarara, Fort Portal, Mbale, and Masaka.
Bahati argued that the funds for the functioning of the new cities were allocated through the original municipalities and the Public Finance and Management Act empowers parliament to authorize the transfer of funds.
However, MPs Hon. Ogong Okot and Cecilia Ogwal challenged the procedure of the transfer demanding for a law to operationallize the new cities which is not yet in place. MPs also raised concern over the absence of structures to handle the funds in the newly created cities.
Minister Bahati stated that the votes for the newly created cities had been created but admitted that the existing law has not been amended.
Speaker Kadaga ruled that before an amendment to the Appropriation Act which create the existing municipalities is done, there is no way the re-allocation of funding to the new cities can be possible.
Hon. Bahati asked for more time to prepare an amendment and return to the house for approval.
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