Uganda’s Parliament has given its approval for the government to borrow USD 20 million (approx Shs70.4bn) from the Arab Bank for Economic Development of Africa (BADEA) to fund the crucial rehabilitation, expansion, and equipping of Bugiri General Hospital.
However, the celebratory mood around this vital healthcare upgrade has been significantly tempered by revelations of substantial funds earmarked for non-core activities, including a staggering UGX 2 billion for seminars and workshops.
The Finance Minister, Henry Musasizi, presented the loan proposal, emphasizing its transformative potential for the region’s healthcare.
According to Musasizi, the intervention will dramatically increase Bugiri General Hospital’s bed capacity from the current 100 to an impressive 250. Furthermore, the hospital is slated for an upgrade to a Regional Referral Hospital, significantly enhancing its service delivery capabilities.
The project is also expected to improve living conditions for medical staff by expanding accommodation units from 83 to 115, ultimately aiming to improve the hospital’s utilization and contribute to increased life expectancy in the area.
Despite these promising projections, the financial details accompanying the loan proposal have sparked outrage among lawmakers. Isingiro South MP Alex Byarugaba spearheaded the criticism, exposing what he described as disproportionate allocations within the project’s budget.
Byarugaba revealed that out of a proposed UGX 70.4 billion loan from BADEA, which appears to encompass the overall project cost or a larger financing package, a massive UGX 2 billion has been set aside for seminars and workshops.
In addition to this, the budget shockingly includes UGX 200 million dedicated solely to the construction of a generator house.
Expressing his deep dismay, MP Byarugaba questioned the rationale behind these expenditures, especially when the core objective of the loan is to bolster critical healthcare infrastructure.
“The hefty sums allocated for seminars, workshops, and even a generator house seem disproportionate and questionable,” Byarugaba stated, adding that such allocations detract from the primary goal of improving patient care and hospital facilities.
The revelations have ignited a debate within parliamentary circles concerning the transparency and judicious use of borrowed funds for public projects.
While the loan’s approval signals a positive step towards enhancing healthcare services in Bugiri, the significant allocations for ancillary activities have raised serious concerns about financial prudence and accountability, prompting calls for tighter oversight on future government projects.
