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Home Business

Auditor General Uncovers Shocking Loss of UGX 316 Billion in Medical Supplies

Insight Post Uganda by Insight Post Uganda
January 16, 2025
in Business
Reading Time: 3 mins read
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Mukono General Hospital.

Mukono General Hospital. File Photo.

The government has written off medical supplies worth Ugx316.65 billion, including COVID-19 vaccines, antiretroviral (ARV) drugs, and test kits, over the past financial year, according to the Auditor General’s latest report.

The shocking revelation was made by Auditor General Edward Akol as he presented the audit report for the financial year 2023/2024 to Deputy Speaker of Parliament Thomas Tayebwa.

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This figure marks a drastic surge compared to the previous financial year when Ugx33 billion worth of medical supplies were discarded.

“In the health sector, there are substantial challenges of expiration of medical supplies. This represents a significant waste of resources that could have served other pressing health needs,” Akol stated.

The wastage of medical supplies, particularly during a period when health services are under increasing strain, has raised serious concerns about resource management and procurement practices within the Ministry of Health.

Struggling Healthcare Infrastructure

Highlighting the dire state of healthcare infrastructure, Akol pointed out that only 15 out of 27 Intensive Care Unit (ICU) beds at Mulago National Referral Hospital are operational. 

This represents just 56 percent of the hospital’s ICU capacity, largely due to staff shortages.

“Critical equipment in several hospitals remains unutilised because there are no trained personnel to operate them,” Akol remarked, adding that this limits the effectiveness of investments made in health infrastructure.

Further compounding the issue, the Auditor General noted that the Ministry of Health’s Health Infrastructure Department requires Ugx20 billion annually for the maintenance of medical equipment. 

However, it only receives Ugx1.8 billion, a mere fraction of the required amount.

“The lack of sufficient funds for maintenance has left many essential machines out of service, reducing the quality of healthcare provided,” he said.

Budget Expenditure, Absorption Challenges

During the 2023/2024 financial year, the government had initially planned a total expenditure of Ugx52.7 trillion. 

This figure was later revised upwards to Ugx61.7 trillion, reflecting supplementary budgets amounting to Ugx8.9 trillion. 

Meanwhile, the revenue budget was adjusted by an additional Ugx3.5 trillion, raising it to Ugx56.2 trillion.

Despite these budget increases, Akol expressed concerns over the low absorption of funds across various government sectors. 

He revealed that only Ugx54.3 trillion of the revised budget was warranted, leaving an unfunded gap of Ugx7.1 trillion. Even more troubling, out of the warranted funds, only Ugx47 trillion was actually spent.

“This underutilisation of funds is severely impacting service delivery, particularly in sectors such as health, education, and infrastructure,” Akol noted, urging immediate action to address inefficiencies in public spending.

Call for Reform

In light of the findings, the Auditor General has called for urgent reforms in the health sector to improve resource management, enhance equipment utilisation, and increase budget absorption rates. 

He emphasised the need for timely procurement, better staff training, and improved funding for equipment maintenance.

Parliamentarians have pledged to scrutinise the report and work with relevant ministries to address the identified gaps.

Tayebwa acknowledged the critical issues raised and assured the public that the government will take necessary steps to prevent further wastage of resources.

With healthcare being a top priority for the country, stakeholders have called for greater transparency, accountability, and efficiency in managing public funds to ensure better service delivery for all Ugandans.

END

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