Ms Jane Frances Okili, the Gulu Resident City Commissioner (RCC), has cautioned the beneficiaries of the Parish Development Model (PDM) against spending the money they have received under the program on Independence Day.
Ms Okili says anyone who used the money to buy food and drinks for Independence Day celebrations will be forced to refund it.
She said the fund should be strictly used for the purpose it was meant for.
Her comments follow reports that a section of the beneficiaries of the multi-billion shillings have diverted the money.
According to reports, PDM beneficiaries in the City have used the money they have received to pay dowry, alcohol and cloth, instead of investing it.
Gulu City has disbursed close to 3.1 billion shillings to 3,000 Saving, Credit and Cooperative Societies (SACCOs), since the implementation of the PDM program kicked off in 2022.
She tasked the local authorities to cause the arrest of individuals who are abusing the program intended to lift 17 million Ugandans out of poverty.