According to the university management, the money in question is what Makerere University Business School (Mubs) owes Makerere university.

“A total of Shs3.5 billion, which is alleged to have been lost, refers to arrears owed by MUBSs to Makerere University. These funds have not been received on any Makerere University bank account and, therefore, could not go missing before they received it. Makerere University and Mubs are still in discussions over the settlement of this obligation,” a university statement published in the print media yesterday reads in part.

Additionally, the other Shs236 million and Shs43 million, which was withdrawn from the project accounts under unclear circumstances, was accounted for before the end of the financial year 2017/2018.

However, Mr Tamale’s handover had clearly stated in his report  that of the Shs4 billion lost, $82,225 (Shs306m) was borrowed as advance by some university staff to carry out research and was supposed to be refunded.

Mr Charles Barugahare, the Makerere university accounting officer, said that the institution has a mutual understanding with development partners to deal with special circumstances of delays in release of funds to guarantee timely implementation of project activities.

“The settlement of part of the funds constituting Shs306 million is ongoing in line with the understanding between the university and the partners (these are partly advances made by the university to academic staff to start implementation of projects activities before the partners remit the project fund),” the statement adds.