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Uganda: Invisible Hands Visibly Grabbing Country's Riches

Julius Kapwepwe

6 October 2008

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opinion

I have quietly but keenly observed the temperature since the revelation of the Temangalo-NSSF scandal by journalist Richard Wanambwa. It is vital to recognise his courage in boldly bringing a scandal of such magnitude to the attention of the world.

The financial scandals in Uganda are simply overwhelming. The mischief at National Social Security Fund (NSSF) in procurement of 463.87 acres at Temangalo instead of 411.61 involving over Shs11b is just a tip of the iceberg. Similar scandals at NSSF, have included Alcon/ Workers House where workers risk losing Shs17b; Nsimbe housing estate involving Shs8b; the mal-functioning Integrated Financial Management System worth Shs3.8b; estimated annual loss of Shs8.4b; Suspect NSSF deal with Uganda Revenue Authority building involving Shs24b and; over pricing of Pensions House involving Shs120b.

Additionally, there are colossal allowances and salaries that management and board have through the years awarded themselves. How much does NSSF lose in procurement of vehicle repairs and telephone bills? Does NSSF actually still have a portfolio over the 1.1 trillion shillings? Such schemes have contradicted provisions of the laws such as Public Finance and Accountability Act and the PPDA Act.

Uganda loses about Shs510b annually mainly through public procurement, according to African Peer Review Mechanism reports. The country lost about Shs36b in the Nytil deal, Shs6.5b in Lira Spinning Mill, large chunks of the Shs94b, CHOGM funds, GAVI funds, Global Fund, Kanathan./ AGOA, etc. Bank of Uganda had about Shs40.5b as losses through unauthorised overdrafts in 2005/06 alone. Uganda's embassies made procurements worth Shs1.2b outside the PPDA procedures in the same period. What motivates some of our missions that continue to issue stamp Ugandan visas instead of designated visa stickers?

Government land that should be held in trust of Ugandans through Uganda Land Commission has been suspiciously allocated to "investors" and individuals without due processes of the law and transparency. The 63.2 acres at Luzira Prisons Land, encroachment on Butabika Hospital and Makerere University Business School are some of the cases. About 19,385 acres of government land has been encroached on at various government farms under the one-time powerful Ministry of Agriculture.

Taking a sample of 15 ministries and departments in 2005/06 alone, Ugandan taxpayers footed a bill of Shs13.5b through vehicle repair and maintenance. The biggest bills were in Defence, Police and Ministry of Works and Transport. Meanwhile, losses through cash and stores in the sampled government agencies amounted to Shs6.3b within the same period. Ugandans recall the beautiful bill boards in support of privatisation.

Indeed by 2006, government had divested 125 public enterprises through privatisation, concessions, etc. Who can account to Ugandans how much this exercise has generated and where is that money? How about the Justice Porter reports and other inquiry reports? What about the housing and vehicle schemes constituted in the 1990s? How much has Uganda recovered following the annual Auditor General audits and the subsequent recommendations of Parliament to the Executive?

Many Ugandans agree with me that a computation of the above sums of lost money clearly shows that Uganda is on the road to breeding to anaemic levels through covert actions of the few. The mischief such as above is being presided over by the political elite. Their invisible hands have systematically and with impunity visibly grabbed what collectively belongs to Ugandans. In other words, the Ugandan economy continues to be denied funds that would otherwise be mobilised for development and reducing her debt burden.

Mr Kapwepwe is a development worker based in Kampala

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