“Audit Report Exposes Billions in Wasted Funds, Ghost Employees, and Mismanagement of Government Projects”

The Auditor General released the 2023/2024 audit report yesterday, revealing the worst-performing government agencies. Presenting the findings to Deputy Speaker Mr. Edward Akol, it was disclosed that the government had overpaid pensioners by a staggering Shs 31.2 billion. This meant that over 3,695 pensioners had received more gratuity than they were entitled to, as they were either deceased, absconded, or had already retired by the time of validation. These pensioners were later confirmed as “ghost employees.”

In the 2022/2023 financial year report, former Auditor General Mr. John Muwanga had raised similar concerns, confirming that many employees were non-existent, further highlighting the prevalence of ghost workers within the pension system.

“Our pension system audit has revealed critical challenges that demand urgent attention,” Akol said. He warned that without reforms, Uganda’s pension sector could become unsustainable.

The report also flagged serious flaws in government projects, including the failed Parish Development Model (PDM), where nearly Shs 900 billion was disbursed for a poverty alleviation scheme. The funds were distributed using fake security documents, duplicate National Identification Numbers (NINs), and matching phone numbers and names.

Additionally, several Savings and Credit Cooperative Organizations (SACCOs) were found to have undertaken ghost projects, with no physical offices to trace their activities. The report attributed these issues to a lack of registered offices, the implementation of ineligible projects, and a general lack of accountability.

The health sector suffered a loss of approximately Shs 316.65 billion due to expired and non-viable medical supplies. This amount, combined with losses from the previous financial year, resulted in a total loss of about Shs 860 billion. Akol emphasized that these were significant wastages of government resources, which could otherwise have been used to address more pressing needs.

In a shocking revelation, Mulago National Referral Hospital’s Intensive Care Unit (ICU), with a capacity of 27 beds, had only 15 beds in use due to a shortage of professional healthcare staff. This underutilization has negatively impacted service delivery, undermining the purpose of increased healthcare budgets.

In the education sector, the report flagged discrepancies in student enrollment. Through the Government Education Management Information System (EMIS), 1,111 pupils were enrolled across 95 local governments, but a total of 85,785 pupils were enrolled under headmaster programs—not the government initiative. By the end of Term One, the total number of enrolled pupils was 811,993, indicating that some schools received more capitation grants than they were entitled to.

In the road maintenance sector, 159 projects were found to have significant defects, including missing culverts and inadequate maintenance.

Deputy Speaker Mr. Tayebwa expressed his commitment to deeper oversight, stating, “I am very happy that we are now going to go deeper. You will see more people sweating as they appear before committees. Hard punishments should be meted out on accounting officers implicated in the report’s findings.”

He also urged that strict measures be taken against officials who fail to implement resolutions passed by Parliament regarding the Auditor General’s reports. “We cannot continue sitting and making declarations that are not implemented,” he vowed.

---