The Auditor General, Mr. Edward Akol, has unveiled a damning report on financial irregularities within government institutions, shedding light on the misuse of public funds during the 2023/2024 financial year. The report highlights overpayments, ghost workers, and systemic inefficiencies that could threaten Uganda’s fiscal health, particularly in the pension sector.
Key Findings of the Report
Pension Overpayments
The Auditor General revealed that the government overpaid 3,695 pensioners by a staggering Shs31.2 billion. This includes:
- Shs22.3 billion in gratuity overpayments to 1,502 pensioners across 19 ministries, departments, and agencies (MDAs), as well as 115 local governments (LGs).
- Shs8.9 billion in excess pension payments to 2,193 pensioners in 23 MDAs and 104 LGs.
Ghost Workers on Payroll
An alarming 3,824 deceased or retired individuals were found to remain on the government payroll, resulting in fraudulent salary payments. This highlights systemic lapses in payroll verification processes.
Parish Development Model (PDM) Mismanagement
The report also criticized the mismanagement of the Parish Development Model (PDM), a government initiative aimed at fostering local development. Misallocations and inefficiencies were noted, although the exact figures were not detailed.
Concerns Over Pension Sustainability
The Auditor General issued a stark warning about the sustainability of Uganda’s pension sector. Without reform, pension liabilities could exceed Shs4.5 trillion by 2034, driven by policies such as early retirement and salary enhancements for science professionals.
Recommendations
The report calls for urgent measures to address these challenges, including:
- Payroll Verification: Implementing rigorous systems to ensure timely removal of ineligible recipients from the government payroll.
- Pension Reforms: Reassessing retirement policies and salary structures to align with Uganda’s fiscal capacity.
- Monitoring Development Programs: Establishing stricter oversight of initiatives like the PDM to ensure proper fund allocation and effective delivery.
Implications and Way Forward
The findings have sparked calls for enhanced accountability and transparency in public financial management. Stakeholders, including policymakers and civil society groups, are pressing for immediate action to prevent further misuse of taxpayer money.
The government is expected to respond by initiating reforms to address the Auditor General’s recommendations, ensuring that public resources are utilized effectively for national development.
