Joshua Kato
31 December 2008
Kampala — The year 2008 started on a wrong note for local governments across the country. During the 2007 review of the decentralisation system, district leaders had complained about the failing state of affairs in local governments as a result of poor financing.
They, in fact, stormed out of a meeting, at Hotel Africana, with the Ministry of Finance over poor financing. Lamentation over poor funding persisted throughout the year, with some lower local governments almost closing down.
The 2008/09 budget allocated sh1.2trillion to local governments across the country. Corruption among local governments and conflicts among leaders were the other highlights of the year.
Inadequate financing
Earlier in the 2007/08 budget the government had started two new taxes as substitutes for the scrapped Graduated Tax. These were the Local Services Tax and the Local Hotels and lodgings tax. However, by the start of 2008, these taxes had not yet become operational.
To make matters worse, graduated tax (G.T) compensation had been reduced to a paltry sh12bn after the introduction of the new taxes. "Lower local government councils (LC3s) are no longer effective largely because they do not have any sources of revenue," lamented Vincent Ssempijja, LC5 Chairman, Masaka district.
Without revenue, running local governments became a problem. Small districts like Abim collected not more than sh10m in taxes and yet mandatory, it is the 20% of it had to be used to run council activities. This explains why in every forum, local leaders have persistently demanded that the 20% quota of local revenue that must be used to run council be revised to either 30% or discretionary. "People should not think that if this quota is made discretionary, we shall misuse the funds. We are responsible and we are working on behalf of our people," says Rakai LC5 chairperson Vincent Ssemakula Ssetuba.
After the reading of the 2008/09 budget however, the new taxes became operational. It immediately became clear that not all local governments will be benefiting from the taxes. "Only urban local governments are set to benefit from these taxes," lamented Julius Ochen, Amuria LC5 chairman. The new taxes needed a lot of sensitization of the masses, before they became operational.
To make matters worse, G.T compensation had also been reduced to a mere sh12bn. By the end of the year, the compensation figure had been raised to around sh25bn.
However district leaders vowed to continue lobbying until the figure is raised to about sh45bn. "Unless funding is improved, decentralisation is in jeopardy," observed John Wycliffe Karazarwe, the president of Uganda Local Governments Association Donors called for measures to raise revenue, instead of waiting for funding from the government and other sources. Accountability
Just like in previous years, accountability remained a problem throughout 2008.
For starters, various surveys put districts among the leading corrupt institutions in the country.
The contracts committees, district service commissions and councillors all featured prominently in various corruption surveys.
With the records at the Auditor General's office and the Parliamentary Local Government Accounts Committee, districts like Nebbi, Kampala, Kabarole, Kisoro, Wakiso, Masaka, Kyenjojo and Apac failed to provide proper accountability for funds. Only Oyam district was cleared.
In Kampala and Mbarara municipalities, the Minister of Local Government even set up a commission of inquiry into abuse of funds. In Makindye division, the vice-chairman, Siraje Lubwama, was imprisoned for abuse of funds. Lubwama and others allegedly misused over sh70m meant for the construction of a drainage system.
Accountability will remain a problem throughout 2009, unless more stern measures are taken.
Conflicts amongst leaders
Several high profile conflicts have occurred this year, most of them involving politicians on one side and technical persons on the other. Analytically, most of them a result of failure to understand Local Government regulations, each others roles, political differences and love affairs.
In the most high profile of them, Kawempe LC3 chairman Nasser Takuba 'fought' with his Town Clerk Abner Besigye. The case was taken to court.
In Rakai, the LC5 chairman Vincent Ssemakula 'fought' with his Speaker Joe Mukisa. The cause of this particular conflict is not clear.
In Nakaseke, the LC5 chairman Ignatius Koomu 'fought' with various senior staff including the CAO Andrew Kyamanywa. Kyamanywa and many other district staff subsequently left the district.
In Masindi, the LC5 chairman Steven Birija 'fought' with the CAO Milton Kato over finances. The conflict in Kayunga finally saw the LC5 chairman Thomas Mulondo loose his seat, through a directive from the IGG. He also served time in prison over abuse of funds.
The endless conflicts amongst leaders caused the biggest transfer of CAOs in 2008. In the shake up, nearly 70% of the CAOs were changed.
Capacity Building
In the middle of the year, a proper set of procedures for running local governments was set up.
However, according to most local leaders, it only gives directions on how to sit in the council. Further more, issues of good governance and democracy, accountability and conflict resolution were still not clear.
Because of such contradictions, capacity building in local governments amongst both councillors and technical personnel took centre stage in 2008.
No new districts in 2008
This is the first year in a long time when no new district was operationalised. 2008 started with 81 districts and it ended with the same number.
However, agitation for district status from different areas persisted. and as the 2011 elections draw nearer, we may see the creation of more districts. Buikwe, Luuka and Budiope will certainly be districts by the end of 2009.
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