Joshua Kato
3 December 2008
Kampala — LEADERS want the local government ministry to increase funds allocated to districts, restructure the decentralisation system and fight corruption.
The leaders, under their umbrella association, the Uganda Local Governments Association (ULGA), have voiced their concerns at the ongoing fifth Joint Annual Review of Decentralisation meeting at Hotel Africana. It was organised by the Ministry of Local Government.
The theme, Good governance and increasing incomes - a key to local development, is timely because it tackles the challenges of local governments.
For years, district leaders have been grappling with how to increase funding for their districts, after graduated tax was scrapped.
Previous reviews of decentralisation have centred on poor funding. For instance, last year, district leaders stormed out of a meeting with the finance ministry officials because they failed to agree on the question of funding.
When President Yoweri Museveni visited the ULGA offices last week, John Karazarwe, the ULGA president, requested him to increase funding for districts.
The 2008/09 budget allocated sh1.2 trillion to facilitate local governments, but by the time the money is released, it has been allocated to a project. District leaders have been lobbying for more graduated tax compensation because the local revenue collections dropped since the tax was scrapped.
The 2008/09 budget allocated sh12b to graduated tax compensation, but after local leaders negotiated with the central government, it was increased to sh25b.
The amount was further revised and increased to sh32b, but even then, ULGA members are not satisfied. "We asked for at least sh45b and we shall continue lobbying for it," says Karazarwe.
The abolition of graduated tax impacted negatively on lower local councils.
Currently, other than the conditional grants under the National Agricultural Advisory Services and the Local Government Development Programme, districts do not get external funding.
District leaders have argued that the mandatory 20% which must be spent on facilitating councils be increased.
Vincent Ssettuba, the Rakai LC5 chairman, says: "This portrays district leaders as incompetent. We were elected by the people so we can plan for their development," he says.
He is of the view that districts should be left to decide the percentage of taxes to be spent on facilitating council work.
Asuman Kyafu, the Iganga LC5 chairman, says: "The economy is moving fast, but the percentage is not changing."
The district leaders say the unconditional grants (funds spent on district initiatives) meant to cover staff wages in most districts are inadequate. They argue that equalisation grants (funds given to less privileged districts) should be enhanced so that some areas are not left behind in national development. "Unconditional grants are, in most cases, inadequate. This creates a staff shortfall," Karazarwe says.
Some LCS say areas like north-east and northern Uganda, which have suffered calamities, should be given more development funds so that they are not left behind.
Corruption is another issue that needs to be addressed. Local governments have persistently featured among the most corrupt institutions, especially in the awarding of tenders and contracts.
According to ULGA, critics of decentralisation say corruption exists due to the weak mechanisms used when carrying out checks and balances.
Karazarwe says ULGA has created a code of conduct and will punish members who engage in corruption.
Many district supervisors claim they do not have adequate funds for transport. "We do not have enough vehicles. Many LC5 chairpersons do not even have vehicles to monitor their districts," says the Busia LC5 chairman, Patrick Were.
The district leaders are proposing a vehicle scheme under which they can acquire vehicles through the Government.
For a year, the Government has been training key district personnel, including sub-county chiefs, sub-county administrative officers and chief administration officers on how to improve rural income through the Prosperity-for-All Programme.
But although most of them have been getting transport facilitation, they are still waiting for the vehicles.
Some local government leaders are challenging the delay in by-elections for local council leaders and the failure to conduct LC1 elections. There are still also some unfilled LC3 positions, including Rubaga Division and Lugazi Town Council.
"When it comes to by-elections for MPs, the Electoral Commission (EC) avails money, but when it comes to local councils, it claims there is no money," Karazarwe says.
But the EC chairman, Hajji Badru Kiggundu, says whereas there is a constitutional by-election limit for MPs, there is none for local councils.
District leaders, therefore, need to seek an amendment to create a constitutional limit for LC elections.
For sometime, the district leaders have been requesting the Government to give them gratuity.
"MPs and RDCs are paid gratuity. But LC5s are not paid and yet, they pay Pay as You Earn tax," Kyafu adds.
The local government ministry has promised to look into the complaints.
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