Authorities say the unspent funds were earmarked for staff recruitment, which the Ministry of Public Service had not approved by the end of the just concluded fiscal year
Jinja City, Uganda: Authorities at Jinja City Council (JCC) have dismissed allegations of financial mismanagement following widespread media reports that it returned Shs4.2 billion to the Consolidated Fund at the close of the 2023/24 financial year, instead attributing the action to a nationwide recruitment freeze and ongoing public payroll audit.
In a one-page statement dated July 8, 2025, addressing the reports, the Council addressed what it called a “disturbing” and “misleading” headline published by the Daily Monitor on July 7 titled “Concerns As Jinja City Returns 4.2Bn/= to Treasury.”
Ms Ndahura Isabella, the Jinja City Deputy Town Clerk, who signed the response on behalf of Town Clerk Edward Lwanga, explained that the unspent funds were earmarked for staff recruitment, which the Ministry of Public Service had not approved by the end of the fiscal year.
The process was also affected by a comprehensive payroll audit spearheaded by the Office of the Auditor General.
“It is not prudent to keep funds for wages of yet-to-be-recruited staff idle in the city’s account when the fiscal year is closing. We had to return the funds to the Consolidated Account to avoid any irregularities,” Ndahura stated.
She added that the Council’s decision was made in full compliance with the Public Finance Management Act, 2015, which requires that all unused public funds be accounted for and returned within the prescribed timeframe.
City Did Not Receive 11.7 Billion
Addressing further allegations of poor financial prioritization, Ms. Ndahura clarified that the Shs11.7 billion figure quoted by the media was not a supplementary budget, but projected local revenue, out of which the Council managed to collect Shs8.2 billion during FY 2023/24.
“It is not true that Jinja City received a supplementary budget of Shs11.7 billion and only used Shs7.4 billion. What was quoted was our local revenue projection, and out of the actual Shs8.2 billion collected, Council procured a motor grader, a roller, and other provisions,” she said.
Jinja City Council reiterated its commitment to transparency and accountability, stating that the return of unutilized funds was routine and procedural, not an indication of inefficiency.
Politics, Disinformation ahead of 2026 Elections
According to sources within Jinja City Hall, the Daily Monitor report and surrounding public discourse are suspected to be part of a deliberate misinformation campaign ahead of the 2026 general elections, potentially targeting Mayor Peter Kasolo (NUP) and Speaker Bernard Mbayo (FDC).
“It’s unfortunate that some individuals are using misinformation to tarnish the reputation of our leaders and manipulate public opinion,” the Council’s statement reads.
Political observers believe the resurfacing of the FY2023/24 budget issue is timed to discredit Mayor Kasolo, who is seeking re-election, and Speaker Mbayo, who has expressed interest in the Jinja South West MP seat.
Both leaders are from opposition parties and have had past confrontations with some technocrats within the city’s bureaucratic establishment.
Despite the allegations, it is the Town Clerk, not elected officials, who is the legally recognized accounting officer, a fact that many residents and voters may overlook during election season.
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