Well, we are in the middle of election hiatus and all, the Nomination and planned campaign that last to 18th February 2016. This here will not be on that, but be crunches numbers delivered from the Bank of Uganda Yearly report for the 2014/2015 budget year. This here will tell what I see as important from that report.
“The external position weakened with the current account deficit excluding official grants deteriorating to 11 percent of GDP compared to 8,8 percent in 2013/14. The deterioration of the current account deficit was largely driven by the services deficit, which deteriorated to US$ 731 Million in 2014/15 from USD 323 million in 2013/14 mainly account of higher payments of government services related to infrastructure projects, particularly Karuma and Isimba Hydro Power Projects” (BoU P:1).
That is big change in deficit! That must be a bit worrying that the amount of monies is becoming this big. Also with the infrastructure projects makes so big hunch of that deficit.
Financial risk management at Bank of Uganda focuses on the risk exposures in both the foreign exchange reserves portfolio as well as other operational areas of the Bank. Notably, foreign exchange reserves account for over 86 percent (2014: 74 percent) of BOU’ assets” (BoU, P: 12).
A lot of foreign exchange is major parts of the reserves of the bank. Is that a safe way to do it and doesn’t that devalue its own currency?
“The higher than programmed expenditure was partly, compensated for by the over performance in government revenue. Total government revenue, including grants amounted to UGX. 10,866.0 Billion, which has higher than target by UGX. 249.1 Billion. Grants and domestic revenues over performed by UGX. 173. 0 Billion, respectably” (BoU, P: 28).
The good news is that Government is able to collect more revenue as of taxation and grants to the Government. Though we can say it is a steady rise and the bank doesn’t explain how the rise happen, because this can’t all be collected on the Cellphone, Alcohol or VAT taxes, but something else.
“The fiscal deficit of UGX 3,621 Billion was financed by both domestic and external source, which amounted to UGX. 2,479.0 Billion and UGX. 919 billion, respectively. Domestic financing included a drawdown on savings amounting to UGX. 1,060.0 Billion and net issuance of Government securities of UGX. 1,386.0 Billion. The drawdone of savings was specifically used to finance expenditures related to the public infrastructure projects” (BoU, P: 29).
This here continues on how the financed and the fiscal deficit and sure the drawdone on the savings to build infrastructure projects.
The total public debt stock, in nominal terms, at end June 2015 is estimated at UGX. 24,242.0 billion, an increase of 24,2 percent of UGX. 19.518. 0 Billion at end of June 2014. External and domestic debt increased by 27,7 percent and 21,1 percent, respectively” (BoU, P: 29).
This here is frightening how much the rise is steady and getting more… The terms of it and the rise should make people shake their heads and worry. The Government of Uganda continues to hedge the Public loans and having a rise like this can’t be a sign of a healthy economy.
The depreciation pressures which started in early 2014 continued through June 2015, with the Shilling depreciating by 18,8 percent year-on-year on a trade weighted basis and by 29.1 percent against the USD to an average mid-rate of UGX. 3,398,49 per USD” BoU, P: 31).
That the currency loses value towards the dollar should also be worring. When you see how much shillings you need now to get the dollar now.
“Petroleum Revenue Investment Fund:
In June 2015, the Government opened two accounts (UGX and USD) in order to operationalize the PF. These accounts are to receive all oil related revenues. In June 2015, USD 36 million was received as part payment of the USD 250 million capital gains tax (CGT) liability from Tullow. This sum includes USD 142 million received in 2012 and USD 108 million to be paid in three equal installments of USD 36 million in 2015, 2016 and 2017” (BoU, P: 45).
“During the year, an amount of UGX 1,607,814 million was transferred from the Oil Tax Revenue Fund to Uganda Consolidation Fund. This balance relates to an amount of UGX 1,161,737 million from Tullow Oil paid to GOU for the settlement of tax dispute between the Government and Heritage Oil & Gas (U) Limited. It also includes stamp duty of USD 171 million (UGX 447 million) on sale of Tullow Oil’s assets to Total and CNOOC” (BoU, P: 107).
“In addition, the bank received USD 36 million (UGX 119,057 million) on 22 June 2015 on behalf of GoU, relating to Tranche 1 Tullow Oil tax settlement” (BoU P: 107).
“Ugandan Consolidation Fund refers to the Government appropriation account where all tax receipts are credited and appropriations made. During 2014/15, UGX 1,612,080 million relating to the oil tax revenue collections was transferred to the UFC” (BoU, P: 107).
As seen Petroleum Revenue Investment Fund and Oil Tax revenue shows how the oil impact has on the economy. We can also see the result of the longstanding dispute of the Government of Uganda and Tullow Oil Company. That has now been overturned and gotten the Total and CNOOC. There will be more monies at stake on a later stage coming with the found oil in the Bunyoro area and Lake Albert.
“The special loan to government relates to an advance to government for procurement of the presidential aircraft with interest rates (LIBOR plus 100 basis points), maturity date and repayment terms agreed between Ministry of Finance and the Bank as stipulated in the memorandum of understanding. The last loan instalment was paid off on 24 July 2015” (BoU, P: 107).
That was an expensive airplane for the president! Though it’s all back-paid this still shows how the President buys what he needs and wants, and not what the people need.
Uganda Consolidation Fund: (by the 31. June of the year)
2014 it was UGX 3, 245,961 million.
2015 it was UGX 2, 386,056 million.
(BoU, P: 117).
As proof with the rising debt and deficits, even with rise of higher taxs returns the Government of Uganda. Stills shows that their spending more than they getting since the Taxation fund is dwindling and become less and smaller account. That in total with the other numbers should be a worrying thing to see. Especially knowing how the NRM-Regime goes mayhem on the economy the coming months of elections paying for every votes with chickens and goats in the districts. We have seen that before and will see it again. This will also lead to rise of inflation with more running through the economy so the value of the currency might also dwindle towards on dollar. Wouldn’t be surprised if the Shilling comes up to 4,000 on a dollar!
And that is not a good luck, since the imports and prices will rise for the rise of cost of imports. But hope my predictions isn’t correct, but election cycles usual make the ordinary voter pay and those receiving just get a patch on the wound created by the mayhem done to economy by the ruling regime. Peace.
Bank of Uganda (BoU) – Annual Report 2014/2015
Today there are planned voting for the Public Finance Management (Amendment) Bill of 2015. This is confirmed through the Minister of Finance, Planning and Economic Development Hon. Matia Kasaija. I will first quote the bill itself then comment on the matter at hand.
“An Act to amend the Public Finance Management Act, 2015; to provide for the preparation of Budget Framework Papers by Sector; to repeal the provision on the requirement to represent a certificate certifying that the policy statements of the votes are gender and equity responsive; to provide for virement by a vote of not more then ten percent of the budget of the vote; to provide for further financing of supplementary estimates; and to provide for guarantees and advances by the Bank of Uganda” (P3, 2015, PFMA).
Amendment of Section 13:
“The Minister or another person responsible for the vote, as any case may be, shall base on the priorities identified in the Budget Framework Paper of the sector of the vote, cause to be prepared for the vote, a policy statement for the vote, for the proceeding financial year and shall submit the policy statement to the Parliament by the 15th of March” (P4, 2015, PFMA).
Amendment of Section 17:
“A vote that does not expend money that was appropriated to the vote for the financial year shall by the 31st July of the following financial year, repay the money to the Consolidated Fund, except where the Secretary to the Treasury authorized the vote to retain money” (P4, 2015, PFMA).
“The authority given by the Secretary to the Treasury under subsection (2) shall be valid up to 31st of October of the financial year” (P4, 2015, PFMA).
Amendment of Section 20:
“The functions of a vote may be transferred to another vote or a vote may be assigned additional functions” (P4, 2015, PFMA).
“Where the functions of a vote are transferred to another vote or where a vote is assigned additional functions, the functions of the vote shall be financed accordance with sections 25” (P4, 2015, PFMA).
Amendment of Section 25:
“(4a) Where the funds in the Contingencies Fund are not sufficient to finance the supplementary budget, the supplementary budget shall be financed by a reallocation of the funds of the annual budget” (P5, 2015, PFMA).
Amendment of Section 36:
“(5a) In addition to subsection (5), a loan raised by the Government as a temporary advance by the Bank of Uganda, which does not extend beyond a financial year shall not require to be approved by the Parliament” (P5, 2015, PFMA).
Amendment of Section 82:
“(1) The bank may with the approval of Parliament, make temporary advances to the Government and local governments in respect of temporary deficiencies of recurrent revenue” (P:6, 2015, PFMA).
“(1a) Notwithstanding subsection (1) the bank may take a temporary advance to the Government, without approval of the Parliament, where the advance does not extend beyond a financial year” (P:6, 2015, PFMA).
“(5) The bank shall not guarantee a payment to any person on behalf of Government or make any advance to any person on behalf on of Government without the prior approval of Parliament” (P:6, 2015, PFMA).
It is reasonable that you have dates for the Budget Framework for the next financial year as they are switching dates in the new amendment. From the 15th of March until the set date of the 31st of July, also by the end of the year pay the money that was voted for into the Consolidated Fund with an exception that the Treasury Secretary has a vote to retain that money. The first changes to the law aren’t really scary or worrying it’s the parts that I come to now seems scary!
In Section 36 the government will have the ability to take up loans without having vote by the Parliament. The Government can henceforth take up advances without being questioned as long as it is set into a certain timeframe. When this continues into the Section 82 where the Government doesn’t need a stamp of approval from the Parliament to take Advances from the Bank of Uganda to secure funding where there is “deficiencies of recurrent revenue”, which means that if a sector of Government is lacking money. They can go directly to the bank and extract funding without having approval from the Parliament. This is to secure balance of funds and to stop the deficiencies in the Government. Still it’s a worrying that the Government can get this ability. (1a) under the same sections is giving the same kind of advance within a financial year without an approval of the Parliament. While the last Section (5) is telling the bank can’t guarantee a payment to any person without approval of the Parliament to a person which represent or are a part of the Government. So With this means that a person or affiliated to the Government can get an advance or loan from the Bank of Uganda without approval of the Parliament, but still not allowed to get a direct payment form the Bank of Uganda. You do get that right? Some of it is if there is a deficiency in the Government. Are there so often missing funds now that the Government has to act in this way, because the lack of funds is so big now that they don’t want approval of the Parliament to fix their own deficiencies? And does the Government fear that giving the information and stamp of validation from the Parliament will show the current loans and advances that the Government does for the moment or need?
The Government must be needing loans towards the election of 2016. That must be reason why the Amendment is happening now and the deficiency is happing now. Also why should it be so hard to get the approval and show the country what the advances and loans are going to during the Financial Year! This is just proving what state of affairs has turned in the country and why people should address it. That this kind of laws get into effect shows how little oversight the Government wants to show and secondly shows how the Government want to loan money without proving paperwork for where the money is going. Since its still short time loans that is to withstand a Financial Year still that this is not looking good, should be visible. The Public Financial Management Amendment of 2015 is surely made to make life easier for the Government and not have to question their actions through the Parliament when it comes to short-term loans and advances. Something is surely up. And we’ll see over time how fruitful this will be and I wouldn’t be surprised if the inflation starts to rise after this amendment to the law get into effect. Peace.
A team from the International Monetary Fund (IMF) led by Ana Lucía Coronel, IMF Mission Chief and Senior Resident Representative in Uganda, visited Kampala from September 24 to October 5, 2015, to conduct the fifth review of Uganda’s economic program supported by the Policy Support Instrument (PSI).1
At the end of the mission, Ms. Coronel, issued the following statement:
“Despite the global and regional economic challenges and election-related uncertainties, Uganda’s recent economic performance has been mostly favorable. Real economic growth —led by increased public investment—reached 5 percent in FY2014/15, slightly below staff projections, but well above the FY2013/14 level (4.5 percent). Core inflation accelerated to 6.7 percent year on year in September but remains within the Bank of Uganda’s target band. International reserves remain at comfortable levels”.
“Uganda is not immune to the difficult external environment affecting other countries. Together with domestic nervousness relating to the upcoming elections, external shocks and uncertainty have resulted in a sharp decline in the shilling (27 percent over the past year), creating challenges for policy makers. The exchange rate depreciation raised domestic prices given the high import content of the consumption basket, created uncertainty for consumers and investors, and generated market uneasiness. The mission welcomed the authorities’ proactive and effective response to the challenging situation, notable the timely monetary tightening, which has helped curb further inflationary pressures”,
“Performance under the PSI was satisfactory. The end-June 2015 fiscal, external, and inflation targets were mostly met. There was significant progress on increasing tax revenue, with the strong package introduced in the FY2014/15 budget yielding about 1¼ percent of GDP compared to an original target of ½ percent. However, the high stock of domestic arrears—notably the proliferation of court awards—remains a concern, despite the authorities’ efforts to reduce them”.
“Discussions focused on policies to be conducted over the rest of the fiscal year. The mission welcomed the authorities’ determination to adapt the policy mix to the ongoing challenges, including those related to the political cycle, by closely coordinating fiscal and monetary actions. Supported by an adequate stock of international reserves, monetary policy will remain vigilant of price developments and help moderate inflation expectations now that the shilling has largely stabilized. On the fiscal front, the authorities are encouraged to continue to build on the strong revenue performance of last year by improving tax collections even during the election period. On the expenditure side, the government has appropriately identified a series of spending cuts that should reduce the need for domestic borrowing, creating space for private sector credit and growth recovery”.
“On the structural front, important steps have been taken. The mission welcomes the approval of the Public Financial Management Act and the actions taken to clean the payroll and improve the payments system. Regulating the new law and finalizing the Charter of Fiscal Responsibility are important steps to further help improve the budget process and efficiency of expenditure. In addition to these improvements, the mission has encouraged the authorities to intensify ongoing efforts to fight corruption, which continues to affect the business climate. Improving transparency and accountability remains critical”.
“Over the medium term, core inflation is set to decline toward the 5 percent target and growth is expected to gradually return to its potential of about 6–6½ percent. While the authorities will continue their plans to scale up public investment, they intend to re-profile projects to ensure that public debt remains at low risk of distress. The completion of these projects should reduce infrastructure bottlenecks and support growth”.
“The mission met with Mr. Keith Muhakanizi, Permanent Secretary/Secretary of Treasury of the Ministry of Finance, Planning and Economic Development; Dr. Louis Kasekende, Deputy Governor of the Bank of Uganda; and other senior government officials, and representatives from the business, civil society and international communities. The mission thanks all counterparts for their collaboration”.
“IMF Executive Board consideration of the fifth review of the PSI-supported program is expected by end-November 2015.”
Those who have followed this blog know that I have done this now for a few years. I continuously address this matter of delayed payments of salaries from the government to their own employees. The Ugandan Government has like a sickness when it comes to paying out monies to its staff. They have to sneeze it out. The strange thing for me is that we haven’t had a tornado of warnings and admission of words from Keith Muhakanizi the Secretary of Treasury. He is unusually silent. Well, the undersecretary of the Public Ministery Geoffrey Ettedu said his peace on the matter and as always Filbert Baguma Bates spoke his wisdom as well. Another silent man was the Minister of Public Ministery Henry Muganwa Kajura. But now let the stories tell them for them self.
At the Gulu University teachers and lectures stopped teaching for missing payment of salaries dating back to August last year. This was in March 2015. Last year in March they did the same kind of strike that time for compensation for extra work (Makumbi & Okot, 2015).
Filbert Baguma Bates says: “that teachers in KCCA, Iganga District among others have never received their salaries of May-2015” (…) “that they have given the respective accounting officers to pay the teachers’ salaries before Wednesday next week failure they will loose their patience” (RadioONEFM90, 2015). In another article Mr Filbert Baguma says: “More than 1,000 civil servants in Nakasongola District, majority being teachers, didn’t get their March pay. As I talk now, the salary for May is not yet paid for 2,000 teachers within KCCA” (…) ”When the problem is for government, they don’t give you genuine reasons. But I think this arises from underbudgeting. Non-salary payment is common in most local governments. You find a number of people missing salary and without reason” (Sibwe, 2015).
Geoffrey Ettedu the undersecretary of the Public Ministery says: “For starters, there should be a cleansing process in documentations from ministries, departments and agencies (MDAs) plus local governments for all civil servants” (…) “Regional accounting officers should be able to update the list of servants quarterly; that way we [will] end the ghost workers epidemic”. If you thought that wasn’t enough Filbert Baguma Bates continues: “Every government employee is supposed to receive salary on the 28th of every month, but [the Kampala Capital City Authority – KCCA is suffering] budget shortfalls that always affect them at the end of almost every financial year” (…) “that the issue had been recurring for the previous three years with primary teachers affected the most” (Alitwijuka & Sekandi, 2015).
I will not discuss the matter more. I have used enough time on this. But have this letter in the end that everybody should read. Peace.
Alitwijuka, Gilber & Sekandi, James – ‘Uganda: Accounting Officers Tasked Over Teachers’ Pay’ (22.06.2015) Link: http://allafrica.com/stories/201506222413.html
RadioONEFM90 – ‘Teachers yet to receive May payment’ (13.06.2015) Link:
Makumbi, Cissy & Okot, John – ‘Gulu University lecturers strike over delayed pay’ (04.03.2015) Link:
Sibwe, Patience Ahimbi – ‘More than 3,000 civil servants miss May salary’ (09.06.2015) Link: http://www.monitor.co.ug/News/National/More-than-3000-civil-servants-miss-May-salary/-/688334/2744528/-/po7sx2/-/index.html
Now again, I will address the matters of civil servants salaries in Uganda. There are still issues with withholding pay for certain groups of society. Like in Kibale District 85 persons we’re affected by this. Electoral Commission is missing money. The good news is that teachers are promised Ush50.000 hike in pay. Last but not least the loans for civil service are back on after been suspended for a while.
In Kibale district there been issues of non-paid civil servant staff. The state hasn’t paid 85. In June it was up to 200 who were affected by the same matter. Human Resources Officer Vincent Kyaligonza says “only 85 out of a total amount of 3200 servants have not been cleared to seek assistance from the CAO’s Office” (ChimpReports, 2014).
The Electoral Commission where recent comments have been made before the next general election in 2016. That Dr. Badru Kiggundu fears this “Salaries for our technical staff have remained stagnant since 1999. This has continued to erode the morale of staff. Through this committee, I appeal to Government for special consideration regarding this dire disparity because increased adjustments were made for all other public servants” (…)”This has put us in a danger of losing our capable and experienced staff and we may not conduct free and fair elections. The commission may not also be able to attract and maintain competent personnel in order to deliver its mandate because of this. In the recent salary revision, increment was only accorded to specified officers and the technical staff was not considered”. The other issue is the budget for the election. Wage bills is set to be sh16.5b this financial year, there is only been given sh8.2b, this means that there is missing sh8.3b. Kiggundu says: “We project to have 30,000 polling stations during 2016 elections and the costs of each voter verification system to be deployed per polling station is approximately $1,000 (about 2.6m) excluding logistics, training, hire of expertise and other concurrent costs” (Kashaka, 2014).
Director of Operation in the Electoral Commission Leonard Mulekwa says: “This is since these councils and committees form electoral colleges for election of Members of Parliamentary and Councillors representing these special interest groups in parliament and local government councils due between February 12 and March 13, 2016” (…)”This period is crowded in the field to permit election activities of Youth, PWDs and older Persons committee to run concurrently and smoothly. Therefore it is logistically prudent to complete these elections before commencing on the presidential and other polls” (Kashaka, 2014).
Certain teachers in the level of Primary school can expect a pay-raise up to 25 % that will be in effect by this month. The lowest pay of a school teacher will now be at shs279.145. Minister of Education Jessica Alupo says: “The increment for teachers’ salaries was provided as promised. The ministry of Finance and Economic Planning factored the increment into the MTEF (Mid-Term Expenditure Framework) where the wage component for primary increased by Shs202 billion from Shs619.68 billion in 2013/2014 to Shs822.07 billion in 2014/2015,” (Nalugo, 2014).
Good News II:
After describing earlier how the government of Uganda suspended loans to their teachers. There is now opened for trade again. Secretary to the Treasury Keith Muhakanizi says: “The control enforcing a maximum of 50% for payroll deductions per individual will be activated on the integrated personnel and payroll system”. Uganda National Teachers Union (UNTU) Spokesman James Tweheyo says also: “The revision of the policy means a lot to us. Most public officers survive on loans” (New Vision, 2014).
Chimreports – ‘Kibaale Civil Servants Miss July Salary’ (11.08.2014) Link: http://chimpreports.com/?p=2150
Kashaka, Umaru – ‘2016 polls: Kiggundu decries lack of funds’ (06.08.2014) Link: http://www.newvision.co.ug/news/658450-2016-polls-kiggundu-decries-lack-of-funds.html
Nalugo, Mercy – ‘Primary teachers’ salaries increased by Shs 50,000’ (06.08.2014) Link: http://www.monitor.co.ug/News/National/Primary-teachers–salaries-increased-by-Shs-50-000/-/688334/2409532/-/36j37vz/-/index.html
New Vision – ‘Government lifts ban on salary loans’ (03.08.2014) Link: http://www.newvision.co.ug/news/658331-government-lifts-ban-on-salary-loans.html
Well, I am back at it again. Since this civil service payments isn’t going after schedule or planning. Therefore innocent and humble, working hard people isn’t getting their decent salaries on time. Which is by all standards is a shame; we have heard all kind of excuses by the leaders and gents of the Government. The Government which is entailed to pay its employees for it services. And after the saga of the magnificent payments structure in the Statehouse and the people around the President Museveni, we should have seen another picture. But it just seems to show how much it matters and why they can make it so slow for decent folks. Here is the latest on the issue:
Promise Civil Service pay by the end of September:
Muhakanizi comments on recent delayed civil service salaries: “releasing funds and budgeting well”, also have issues with “planning” and their inefficiency with following “procurement guidelines”. Muhakanizi continues: “Was finance releasing funds and budgeting well? The answer is no. And why was the release of funds poor?” (…)”We [finance] were releasing funds every month, but no one can budget basing on one month, it’s unacceptable and it was wrong”. He promised that the pay will now be cleared by “end of September”. Muhakanizi follows it up: “Teachers must teach people must get their titles from the [ministry of] Lands, the Judiciary must deliver justice in a timely manner” (…)”Those people who always ask for supplementary [funds] know themselves, but I refused to cut development expenditures for consumption purposes and if anyone does it, it must be rejected “(Walusimbi, 2014).
By the same statement to New Vision Muhanizi said: “If salary arrears are not paid by September, then call me a liar” (Mulundo, 2014)
Joseph Ssewungu the Kalungu West MP says to all this: “ want to tell Keith [Muhakanizi] that you will not pay teachers by September because you promised before, to send payment vouchers to all districts on top of clearing all the salary arrears by June, but up to now, nothing has been done. But you can promise for the sake of making us happy” (Walusimbi, 2014).
Important Pay scales for civil service employees like teachers:
Senior School Principal: 1,687,000Ush.
Education Assistant Grade III: 230,000Ush.
By now this has just gotten 25% increase.
At Makerere University:
Professors: 700,000Ush per month.
Henry Banyenzaki Rubanda West MP is worried because when in Kabale District where 8000 pupils went up for PLE (Primary Level Examination) last year alone, and then only 412 passed this level (Editorial Monitor, 2014).
Uganda National Teachers Union (UNTU) has denounced Kampala Capital City Authority (KCCA). This happens because the default failing on the salaries up to 30%. Schools on the secondary level are also feeling like a side project (KFM, 2014).
Uganda – Outtakes from Budget Speech 2014/2015 – Teachers’ salaries:
“Priorities to be implemented include the enhancement of Teachers’ salaries, with emphasis on Primary School Teachers. Shs 215bn has been allocated for this purpose. I have also provided Shs. 5 billion towards supporting Teachers’ SACCOs, in addition to the Shs. 2.5 billion provided during this year”.
That’s all I got on the matter today!
Editorial Monitor.co.ug – ‘Govt should fulfill teachers’ manifesto’ (25.07.2014) Link: http://www.monitor.co.ug/OpEd/Editorial/Govt-should-fulfill-teachers–manifesto/-/689360/2396382/-/6lba5u/-/index.html
Mulondo, Moses – ‘The Secretary to the treasury Keith Muhakanizi has promised that all salary arrears for civil servants will be paid by September’ (24.07.2014) Link: http://ehabari.com/uganda-to-pay-all-salary-arrears-by-september/
KFM – ‘Science teachers attack KCCA over pay’ (23.07.2014) Link: http://kfm.co.ug/news/science-teachers-attack-kcca-over-pay.html
Ssemogerere, Karoli – ‘There has to be a way of sorting out teachers pay issue’ (24.07.2014) Link: http://www.monitor.co.ug/OpEd/Commentary/There-has-to-be-a-way-of-sorting-out-teachers-pay-issue/-/689364/2394918/-/item/0/-/10l1x6ez/-/index.html
Walusimbi, Deo – ‘Uganda: Muhakanizi Explains Poor Govt Services’ (27.07.2014) Link: http://allafrica.com/stories/201407281639.html
We’ll after report of not paying Arua districts civil-servants on 28th of May in the Daily Monitor. This is a thousand teachers without pay! They will get a new form to get their pay, but why? Shouldn’t it have come as naturally to them? (Aluma 2014) Then on NTV Uganda on 31th May Keith Muhakanzi – Permanent Secretary Finance Ministery said this: «If by the 18th the finance in case of local government, finance local government they have not responded, we shall pay, but the accounting officer will take responsibility for that payroll”. The report then went onto describing how the police force used payment of salaries for other activities! See the thing here:
Just to continue here with some older cases on the fun with pay in Uganda. I am sure that the civil servants and their families are not enjoying the play of the higher officers and how things are disappearing into thin air!
It keeps happening again and again, it must be more than just the accounting officer who has the issue. Then it must be the system or those fuelling the system? I have already in recent months reported on 15th May on ghost civil servants, then issues with the pay of June 2013 payments(Minbane, 15.05.2014). Wonder if Keith Muhkanzi: will hang the accounting officer this time? And what will he do next?
Even earlier on 12th May I reported yet again on the ghost money. So it must be pattern. Or am I wrong? (Minbane, 12.05.2014)
Well, recently reports from Ernest & Young has been hired to check the authenticity of 6000 workers and see who is getting reinstated salaries or government payroll of April(AllAfrica.com, 2014). This is supposed to kill of “ghosts”. Let see if those that! But, I am sure that it going to be more issues and stories of both “ghosts” and “lost” pay. Especially because of “new” “systems” and “malfunctions”, so congrats people and wish your local civil servants a good day! Because that is necessary – do them that favor! Peace.
Aluma, Clement & Okaba, Patrick – Over 1,000 Teachers Miss Pay (28.05.2014): http://www.monitor.co.ug/News/National/Over-1-000-teachers-miss-pay/-/688334/2328674/-/12cic4p/-/index.html
Allafrica.com: Uganda – Ghost Workers Probe Welcome: http://allafrica.com/stories/201405300306.html
Minbane – Delayed salary for the civil service in Uganda, again! (15.05.2014): https://minbane.wordpress.com/2014/05/17/delayed-salary-for-the-civil-service-in-uganda-again/
Minbane – Long Road of “ghost’s” in Uganda (12.05.2014): https://minbane.wordpress.com/2014/05/12/long-road-of-ghosts-in-uganda/
The other day we had the issues of ‘ghosts’, but this is the civil servants. Finance Minister Maria Kiwanuka is having a dry spell. The ones who suffer right are the teachers, police officers and health workers who haven’t gotten their salary in a long time (NTV Uganda Footage).
“The decentralisation of the payment system did not alter the mandate of the ministry of Public Service. It is required to submit the final payroll by the 23 [of every month]. The deadline has not been adhered to for various reasons,”Ms Kiwanuka said (Arinaitwe, 2014). Still though even if you had some malfunctions or distractions on the way, still shouldn’t the April pay and other ones disappear into thin air? Not that I am warmongering or a wokoloso, naye I have to ask, how is it possible yet again. At that time the treasury secretary Keith Muhakanizi threaten to hang people over ghosts (Minbane, 2014). So shouldn’t he have a chat with Ms Kiwanuka yesterday?
Even in 2013 in June there was a similar incidence in with the civil service. They have not been paid for two weeks out in June and also no pay of salary in May. At that time it was a public service spokesman Jonas Tumwine: “ …. has been caused by the ongoing cleanup of the payroll” (Kakaire, 2013).
I could have told stories backing down in to the abyss of history, but that wouldn’t matter or make any difference today. Just as the outcome of late pay to the civil servants makes them weak and also the institutions of the government. This must be a wish of the government and the president of Yoweri Museveni and his NRM. So what is next in this tale?
Arinaitwe, Solomon – Daily Monitor Uganda (15.05.2014): http://www.monitor.co.ug/News/National/Parliament–orders-govt-to-pay-civil-servants-/-/688334/2316290/-/jn1u5oz/-/index.html
Kakaire, Sulaman – Observer Uganda/Allafrica.com (12.06.2013 – No Pays for Civil Servants: http://allafrica.com/stories/201306121469.html
Minbane (12.05.2014): https://minbane.wordpress.com/2014/05/12/long-road-of-ghosts-in-uganda/ chech the NTV footage and the words of
It’s been a long road with ghosts in Uganda. This isn’t really news other than the smear fact of Keith Muhakanizi’s hanging those who civil servants whose been using the system for gaining extra cash instead of paying them. Sure didn’t get the memo of ghost medicine saga of 2008 or all the fun accident of government monies happily ending in MPs or Ministers pockets.
Keith Muhakanizi the newest secretary of treasury. Who is working to eliminated “ghosts”. The plan is to get all the civil servants to write their signature on the work hours. Still that effort isn’t paying off! Keith is saying “if you have ghosts on your payroll: I’ll hang you!” he continues: “I didn’t realize that it was enough ghosts hanging over because central government system over time, nobody would take accountability!” Then Keith showed the world the crazy eyes of leadership (Check the footage of NTV Uganda).
If the reforms will make it as the news reporters say: the four months will be a year. So that the signature scheme to sufficiently stop the “ghost” practice. Chimpreports recently also tells the story of the Ministry of Education is going after “old ghost money” that FUFA is expecting 10% of each sponsorship that the clubs in the Ugandan Super League (USL).
In December 2013 in all year of Shs 70 billion went to ghost prisoners. The incidence of 396 out of 769 names can’t be validated or sound real (Monitor.co.ug).
So that the Keith Muhakanizi has a lot to do, especially since there has happen a lot since August 2013. Therefore his report and works has to anticipate more loads of work and maybe some new reports to make a difference. That’s why as secretary of treasury he got a few papers and “ghosts” to hang! Peace.
MoE, FUFA and USL: