Auditor General Edward Akol presents the 2023/2024 Financial Year Audit Report at Parliament on January 15, 2025. PHOTO/DAVID LUBOWA
Highlights from the annual Audit Report presented to the Deputy Speaker of Parliament, Thomas Tayebwa, by the Auditor General, Mr Edward Akol, indicate massive rot, manipulation of processes and procedures, and gross inefficiencies leading to the loss of billions of shillings. These findings mirror and add to the longstanding trend of misuse and loss of taxpayer money occasioned by public officials.
Managers of the government payroll at the Local Government and Ministries, Departments, and Agencies have yet again come under the spotlight for effecting payments over and above the actual amounts. For example, taxpayers lost more than Shs30 billion in inflated gratuity and pension benefits.
The audit also found critical challenges in government procurement that threaten efficiency, transparency, and accountability, creating loopholes for the loss of public funds.
In 2023, the Office of the Auditor General, together with the Ministry of Finance, Planning and Economic Development, conducted a headcount census of all civil servants in an effort to clean the government payroll after reports of the loss of colossal sums of money due to mismanagement.
The exercise rooted out thousands of ghosts but may have fallen short of clearing all anomalies, according to the 2024 report.
Persistent problems
The Auditor General has over the years faulted managers of the government payroll, including local government officials, as key leakages of taxpayers’ money by paying out billions of shillings to ghost employees. In the report, the Auditor General reported that 3,824 dead or retired individuals remained on the government payroll and were fraudulently paid Shs23.62 billion.
Similarly, in 2022, the audit revealed that taxpayers lost Shs39 billion in overpayments, underpayments, and cases of illegal payroll access and deductions. In the 2023 report, it also emerged that civil servants drawing a government salary, as well as some private sector employees, pocketed Shs1 billion relief funds meant to cushion the urban vulnerable during the second Covid-19-induced lockdown.
During the celebration of International Anti-Corruption Day in December last year, the ombudsman, Ms. Beti Kamya, revealed a rise in sophisticated forms of corruption, adding that government officials are aiding many of these schemes.
"While we normally focus on the traditional faces of corruption like bribery, embezzlement, falsification of accountability documents, procurement malpractices, tax evasions through under-declaration and non-declaration of taxable business, ghost employees and ghost facilities, absenteeism, inflation of payrolls, HR management malpractices, environmental degradation etc., which is estimated to cost about Shs 10 trillion per year, through the recent joint brainstorming session we learned that there is actually very big corruption out there, often not talked about, but through which a lot more money is stolen from Uganda,” she said.
She added, “Financial institutions are defrauded of hundreds of billions of shillings, usually channeled through government systems and processes, aided by government officials. The recent syphoning of Shs60 billion from BoU [the central bank] is a typical example of a common occurrence in most financial institutions in Uganda today.”
The “disappearance” of the Shs60 billion had initially been disguised as a hacking job by some shadowy group, but it was later discovered to have been an inside job by officials in the institution and the Ministry of Finance.
Government officials, Ombudsman Kamya noted, are also aiding the stealing from investors, proceeds which are then laundered by buying property at home or abroad. While presenting the bi-annual report of her performance in fighting corruption to Parliament in October, Ms. Kamya revealed a hike in cases of corruption over the past 24 months leading up to July, from 1,068 to 1,276, to 1,309, settling at 1,657. The complaints were majorly related to corruption, stealing public funds, abuse of office, and non-payment of pensions and salaries.
The Fourth National Integrity Survey Report of 2021, conducted by the Inspectorate of Government in collaboration with the Uganda Bureau of Statistics (UBOS), ranked the police as the top corrupt entity for taking bribes. This was followed by courts of law and land tribunals, public health facilities, and District Service Commissions.
A different survey conducted in 2023 by Afrobarometer, an African research firm, again found police as most corrupt, followed by tax officials, civil servants, officials in the presidency, and members of Parliament.
Prominent corruption cases
Bank of Uganda Heist Multiple cases of corruption involving high-ranking officials in government have been documented over the years. The most recent is the syphoning of Shs60b from the country’s Central Bank, where staff of the Bank, the Ministry of Finance, Planning, and Economic Development are said to have colluded to wire taxpayers’ money to accounts outside the country.
Cooperatives Shs3.8b Saga A report by Parliament’s Committee on Tourism and Trade in 2023 released a report whose findings implicated civil servants, legislators, lawyers, and commercial banks of misappropriating billions of shillings earmarked for the compensation of cooperatives.
It is against these findings that Ms Geraldine Ssali, the Permanent Secretary at the Ministry of Trade, has been pinned. Others implicated are members of Parliament Michael Mawanda (Igara East), Paul Akamba (Busiki County), and Ignatius Wamakuyu (Elgon County). They are currently facing charges of abuse of office, causing financial loss of more than Shs3.8 billion.
Budget Tampering A couple of members of Parliament are currently on remand for soliciting a bribe to influence the budgeting process. Ms. Cissy Namujju (District Woman Representative) and Yusuf Mutembuli (Bunyole East) allegedly solicited a bribe of 20 percent from Ms Mariam Wangadya, the Chairperson of the Human Rights Commission, to influence the increase of the entity’s budget. Citing similar concerns, President Museveni, in an unprecedented move, declined to assent to the Appropriation Bill 2024 after legislators reallocated monies from executive priorities to other areas.
Parliament Exhibition Since the beginning of 2024, allegations of corruption-related incidents by parliament officials have dominated the airwaves and social media. This started in February with the revelation that backbench commissioners and the former Leader of Opposition in Parliament (LoP) had been awarded Shs500m as a service award. While the service award of Shs1.7b to Mathias Mpuuga, the immediate former LoP, and backbench commissioners was ruled as legal, it is viewed by many as a case of those in suits unfairly using public resources for personal gain. Citizens argue the funds would have been channeled to service delivery.
There are also allegations against the head of Parliament, Ms Anita Among, who is accused of mismanagement, extravagance, and diverting public funds. Activists, who have shared a trove of documents to support their allegations, also accuse the 11th parliament of illegal recruitment, favoritism, and extravagance, among others.
The Mabaati-Gate Scandal More than 5,000 iron sheets meant to benefit the vulnerable in Karamoja were misallocated, leading to a loss of Shs25b in questionable procurement of ill-fated goats. The scandal implicated dozens of government officials, cabinet ministers, and legislators.
Vice President Jessica Alupo, Speaker of Parliament Anita Among, Prime Minister Robinah Nabbanja, third Deputy Premier Rukia Nakadaama, Minister for EAC Rebecca Kadaga, Finance ministers Matia Kasaija, State Defence Minister Jacob Oboth Oboth, State Minister for Primary Education Moriku Kaducu, Government Chief Whip Hamson Obua, and State Agriculture Minister Bwiino Kyakulaga are alleged to have benefitted. These were all cleared, leaving only three; Amos Lugoloobi, Dr Gorretti Kitutu, and Ms Agnes Nandutu, in the crosshairs. Kitutu and Nandutu, former ministers of Karamoja, were also dropped from Cabinet.
The Office of the Prime Minister that houses the Ministry of Karamoja was also found culpable of procuring ill-fated goats worth Shs25b, most of which died. The House Committee that inquired into the matter also reported a huge difference between the intended beneficiaries and who actually received, an overshot in the budget, and delivery of less than budgeted animals.
CHOGM 2007 Billions of shillings were lost in the mismanagement of funds meant for the Commonwealth Heads of Government Meeting (CHOGM) Summit in 2007. Then Vice President, Gilbert Bukenya, Prime Minister Amama Mbabazi, Sam Kutesa (Foreign Affairs), John Nasasira (Chief Whip), and Mwesigwa Rukutana (Labour) were among those implicated.
Mr Bukenya, who chaired the Cabinet Select Committee that organized the meeting, was accused of influence peddling in the procurement of vehicles. They were charged with abuse of office and causing financial loss. They were all exonerated.
Global Fund Scandal Nearly $40m meant to aid the HIV/AIDS fight was lost under the Ministry of Health in 2005. Then Minister for Health, Maj Gen Jim Muhwezi, and his two juniors, Dr Alex Kamugasha and Capt. Mike Mukula, were as a result sacked and ordered to refund the money. Only part of the same was recovered.
PROMINENT CORRUPTION CASES
Bank of Uganda Heist
Multiple cases of corruption involving high-ranking officials in government have been documented over the years. The most recent is the siphoning of Shs60b from the country's Central Bank, where staff of the Bank, the Ministry of Finance Planning and Economic Development are said to have colluded to wire taxpayers' money to accounts outside the country.
Cooperatives Shs3.8b saga
A report by Parliament’s Committee on Tourism and Trade in 2023 released a report whose findings implicated civil servants, legislators, lawyers, and commercial banks of misappropriating billions of Shillings earmarked for the compensation of cooperatives.
It is against these findings that have pinned Ms. Geraldine Ssali, the Permanent Secretary at the Ministry of Trade. Others implicated are members of Parliament Michael Mawanda (Igara East), Paul Akamba (Busiki County), and Ignatius Wamakuyu (Elgon County).
They are currently facing charges of abuse of office, causing financial loss of more than Shs3.8b.
Budget Tampering
A couple of members of parliament are currently on remand for soliciting a bribe to influence the budgeting process.
Ms. Cissy Namujju (District Woman Representative), and Yusuf Mutembuli (Bunyole East) allegedly solicited a bribe of 20 percent from Ms. Mariam Wangadya, the Chairperson of the Human Rights Commission, to influence the increase of the entity’s budget.
Citing similar concerns, President Museveni in an unprecedented move declined to assent to the Appropriation Bill 2024, after legislators reallocated monies from executive priorities to other areas.
Parliament Exhibition
Since the beginning of 2024, allegations of corruption-related incidents by parliament officials have dominated the airwaves and social media. This started in February with the revelation that backbench commissioners and the former Leader of Opposition in Parliament (LoP) had been awarded Shs500m as a service award.
While the service award of Shs1.7b to Mathias Mpuuga, the immediate former LoP, and backbench commissioners was ruled as legal, it is viewed by many as a case of those in suits unfairly using public resources for personal gain.
Citizens argue the funds would have been channeled to service delivery.
There are also allegations against the head of Parliament, Ms. Anita Among, who is accused of mismanagement, extravagance, and diverting public funds. Activists, who have shared a trove of documents to support their allegations, also accuse the 11th parliament of illegal recruitment, favoritism, and extravagance among others.
The Mabaati-gate Scandal
More than 5,000 iron sheets meant to benefit the vulnerable in Karamoja were misallocated, and at Shs25b was lost in questionable procurement of ill-fated goats.
The scandal implicated dozens of government officials, cabinet ministers, and legislators. Vice President Jessica Alupo, Speaker of Parliament Anita Among, Prime Minister Robinah Nabbanja, Third Deputy Premier Rukia Nakadaama, Minister for EAC Rebecca Kadaga, Finance Ministers Matia Kasaija, State Defence Minister Jacob Oboth Oboth, State Minister for Primary Education Moriku Kaducu, Government Chief Whip Hamson Obua, and State Agriculture Minister Bwiino Kyakulaga are alleged to have benefited.
These were all cleared, leaving only three; Amos Lugoloobi, Dr. Gorretti Kitutu, and Ms. Agnes Nandutu, in the crosshairs. Kitutu and Nandutu, former ministers of Karamoja, were also dropped from Cabinet.
The Office of the Prime Minister that houses the Ministry of Karamoja was also found culpable of procuring ill-fated goats worth Shs25b, most of which died. The House Committee that inquired into the matter also reported a huge difference between the intended beneficiaries and who actually received, an overshot in the budget, and delivery of fewer than budgeted animals.
CHOGM 2007
Billions of shillings were lost in the mismanagement of funds meant for the Commonwealth Heads of Government Meeting (CHOGM) Summit in 2007.
Then Vice President, Gilbert Bukenya, Prime Minister Amama Mbabazi, Sam Kuteesa (Foreign Affairs), John Nasasira (Chief Whip), and Mwesigwa Rukutana (Labour) were among those implicated.
Mr. Bukenya, who chaired the Cabinet Select Committee that organized the meeting, was accused of influence peddling in the procurement of vehicles. They were charged with abuse of office and causing financial loss. They were all exonerated.
Global Fund Scandal
Nearly $40m meant to aid the HIV/AIDS fight was lost under the Ministry of Health in 2005.
Then Minister for Health, Maj Gen Jim Muhwezi, and his two juniors, Dr. Alex Kamugasha and Capt. Mike Mukula, were as a result sacked and ordered to refund the money. Only part of the same was recovered.
Gavi Funds Scandal (2007)
Former Health Ministers, Jim Muhwezi, Mike Mukula, Dr. Alex Kamugasha, and Ms. Alice Kaboyo, the Presidential aide, were implicated in a scandal where Shs1.8b from the Alliance for Vaccine and Immunization was lost through fraudulent procurements.
Capt. Mike Mukula was jailed for misusing Shs240m and served a four-year jail term, while Ms. Kaboyo was also found guilty. Maj Muhwezi and another Health minister Dr. Kamugasha were acquitted by the Anti-Corruption Court.
NSSF-Temangalo Land Scandal
Former Prime Minister Amama Mbabazi, then security Minister, came under fire after NSSF procured land he jointly owned with businessman Amos Nzei.
The 411 hectares were bought at Shs11.2b. Dr. Ezra Suruma, who was Finance Minister, which supervised NSSF, and owned the now-defunct National Bank of Commerce where the money was invested, was also involved in the saga.
A parliamentary probe report recommended action against Mbabazi and Suruma over a conflict of interest, but this was quashed by the whole House.
Geoffrey Kazinda: 2008
Monies amounting to Shs5b meant for the Peace, Recovery, and Development Plan for Northern Uganda (PRDP) were stolen, with the active involvement of Mr. Geoffrey Kazinda, then Principal Accountant.
He was convicted of corruption-related charges and sentenced to 40 years in prison. Kazinda, who has been in prison since 2012, was also ordered to pay Shs19b.
Shs142b Basajjabala Case
The Bank of Uganda was accused of facilitating the loss of billions of shillings when it guaranteed loans for Hassan Basajjabala.
Between 2000 and 2011, Mr. Basajjabala entered into contracts with the Kampala Capital City Authority to manage and redevelop Owino, Nakasero, and Shwuliyako markets, as well as the Constitutional Square, but the contracts were canceled following unrest from traders.
The businessman then got loans worth $65m from different commercial banks using letters issued by the Central Bank, which said the government owed Basajjabala money in compensation.
The businessman, however, defaulted on the payment, and the commercial banks used the letters to recover the money from the Consolidated Fund, leading to the loss of Shs142b taxpayer funds.
