Uganda: Massive Money Mismanagement Exposed in Luwero, Including Payments to Deceased Employees

10 August 2023
Nile Post (Kampala)
By Josephine Namakumbi

Officials from Luwero District Local Government, led by the Chief Administrative Officer Asaba Innocent, faced scrutiny before the Local Government Accounts Committee as they responded to queries raised in the Auditor General's report for the financial year 2021/2022.

Shockingly, during this engagement, legislators on the committee unearthed a startling revelation - seven deceased employees of Luwero District Local Government had been receiving monthly salaries from their bank accounts.

The legislators were taken aback by the discovery and swiftly demanded explanations from the officials regarding the circumstances that led to the continued payment of salaries to individuals who had passed away in the year 2021.

This development prompted intense discussions and inquiries during the committee session, as the officials were pressed to account for the oversight that allowed salaries to be disbursed to deceased individuals.

The committee sought clarity on the measures in place, or lack thereof that enabled such a grave lapse in financial management.

Further revelations painted a troubling picture of financial mismanagement within Luwero District.

The committee raised concerns over the ATM cards of a significant number of employees - reportedly over 100 - being held by money lenders.

Startling evidence suggested that these money lenders had seized the ATM cards and were withdrawing funds from the bank accounts of these employees.

The committee members expressed their deep concerns about the blatant financial irregularities, highlighting the need for a thorough investigation into the circumstances surrounding the confiscation of the ATM cards and the subsequent exploitation of employees' accounts.

Another major point of contention was the failure of the district to deduct Pay as You Earn (PAYE) from the salaries of 48 employees during the audited year. Legislators denounced this oversight as a direct financial loss to the government and questioned the accountability mechanisms in place within the district.

The committee's scrutiny extended to the issue of unabsorbed funds in the district's budget for the audited financial year.

A staggering 2.9 billion shillings was returned to the consolidated fund at the close of the financial year, raising concerns about the district's utilization of allocated resources.

Committee members pressed the officials to provide a detailed account of the factors contributing to this sizeable return of funds and to address the implications of this financial decision.

The revelations emerging from the committee hearings shed light on the urgent need for improved financial management and accountability within Luwero District Local Government.

The unsettling discoveries point to a broader problem of oversight and governance that must be addressed to safeguard public funds and ensure the responsible use of resources.

Additional reporting by David Ijjo 

Read the original article on Nile Post.

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