Another Pension scam hits Public Service

Officials from the ministry of Public Service have failed to account for over Shs 23 billion in what is suspected to be another ghost scam.

While appearing before parliament’s Public Accounts Committee, the officials led by Ms Catherine Musingwiire, the Permanent Secretary failed to explain the money which was paid to pensioners beyond the lawful pensionable period of 15 years after retirement, between 2013 and 2015.

According the two reports by the Auditor General 2013-2014 and 2014-2015, the money, Shs 12.7 billion and Shs 11 billion respectively was paid to claimants without proof of life certificates.

“Absence of evidence of continued existence of pensioners in form of life certificates to support pension payments may imply payments to non-existent pensioners,” noted the Auditor General.

On the spot is Ms Grace Atepat, the Senior Accountant in Charge of Pension, Mr Laban Bulwa, the Senior Accountant in the ministry and the former acting Permanent Secretary, Ms Ada Muwanga.
Ms Musingwiire was saved from the mess since she was not yet in office during the troubled years of audit.

“I can only advise that this money be recovered or proof be provided justifying the payment,’ said Mr Mathias Mpuuga (DP-Masaka Municipality) who led the committee in probing the officials.

Section 18 (1) of the Pensions Act provides that, public servants are entitled to pension for a period 15 years, after which they are supposed to present annual “life certificates’ as evidence to claim their benefits.

However according to the reports a total of 17,593 received pension in the two years under mysterious circumstances.

Ms Atepat told the committee chaired by Vice, Gerald Karuhaga (Ntungamo Municipality-Ind) that the figures had been inflated by the Auditor General, claiming that he reconciled figure was shs. 5.2 billion shillings, while Ms Muwanga blamed the figures on the old pay roll, inherited from Christopher Obey.

“We decided to tackle the gratuities first and leave the monthly pension pay roll as it was, “she said
The two however failed to present supportive documents to back her claims.

Mr Cassiano Oketcha, the Senior Principal Auditor in the Office of the Auditor General convinced the committee that the findings were premised by information availed to auditors during the audit period
“The management letter that was issued at the time of exit indicated shs. 11 billion for 2014 while in 2013 it was Shs 12.7 billion,’ Oketcha said.

Mr Karuhanga warned that the officials risk joining their predecessors in jail unless they can account for the funds.
“I want to caution you, (Christopher) Obey was like you, don’t take the committee for granted,” he said.

Mr Mpuuga later told Daily Monitor that the scheme was well orchestrated to steal tax payers’ money.
“Our basic finding is that the cash bonanza in the ministry has not stopped and we can’t let this fictitious payment go unabated,” he said.

Mpuuga said that the several irregularities within the ministry indicated a broader web targeting pension funds.
“With these unscrupulous payments we can only conclude that this was fraud and we have no choice as PAC but to demand that hey refund the money,” he said.

The committee also learnt that the ministry carried out multiple pension payment amounting to shs 1.2 billion approved by Mr Laban Bulwa, the Senior Accounting officer in the ministry.
Meanwhile, it was established that the ministry is still grappling with over shs 200 billion in arrears, out of which shs 199 billion is for gratuity and shs 108 billion is meant for pension.
Figures
2013-12.7 billion
2014-11 billion
14.7 bn mischarge
200bn Debt (199bn gratuity arrears +108.6bn pension arrears)
2.4 billion Multiple Payments

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