Government Schools Ordered To Reimburse Term II Funds

The Ministry of Finance has issued a directive to all accounting officers and local governments to refund money that was transferred to government-aided schools as a capitation grant for the second term.

A circular dated July 22 from the ministry’s Permanent Secretary, Mr. Keith Muhakanizi, reveals that the funds that were released for the second term of 2020/2021 academic year were part of the last release of the 2019/2020 Financial Year and were to be used by schools for the second term.

Mr. Muhakanizi said that since schools are still closed by the government following the outbreak of Covid-19 and students did not study the second term, all the money must be refunded.

“You were instructed to use the funds only when the government instructs the schools to open for the second term. Considering that the schools did not open for the second term and the financial year came to an end on June 30, you are instructed to return the funds intact,” he said.

“You should hand in the documentation confirming the remittance of funds to the Consolidated Fund in Bank of Uganda for all the schools that are under your votes to this ministry for the attention of Director Budget within two weeks in any case not later than August 6,” Mr. Muhakanizi directed.

The Ministry of Education spokesperson, Mr. Patrick Muinda, said government-aided secondary schools get 88,000 Uganda shillings for each A-level student and 55,000 Uganda shillings for O-Level students as capitation grant per term. He did not give the total enrolment number of students in Secondary schools, so nobody could calculate the total amount of money.

He said in government-aided primary schools, each pupil gets Shs17, 000 per year and there are eight million pupils, which translates into Shs136b for pupils in all public primary schools.

“We will do the coordination to ensure all schools and local governments comply and have the money refunded appropriately…,” Mr. Muinda said.

Capitation grants are used on instructional materials, co-curricular activities, school maintenance, and payment for utilities such as electricity and water, among others.

However, the Uganda National Teachers’ Union (Unatu), said schools will not be able to refund the capitation money as they are spending the money on a number of things. According to Unatu, secretary-general, Filbert Baguma, schools still have to spend on maintenance, electricity, and payment of security guards that keep the premises intact.

Head-teachers have also protested the government’s decision to refund capitation grants.

“The headteachers are protesting the letter from PS Finance. They have said it is a sign that there are people in this country who do not appreciate and understand how schools are run. Even when schools are not open, there is overhead expenditure,” Mr. Martine Okiria Obore, who chairs the Association of Secondary School Headteachers, said yesterday.

All schools across the country were closed in March to minimize the spread of coronavirus. To date, schools have not yet been opened.

President Museveni in his latest address, last week, said the government would make a final decision on the reopening of schools before September.