In the latest semi-annual Budget Monitoring Report released by the Ministry of Finance for the fiscal year 2023/24, significant payroll irregularities continue to challenge local governments (LGs) across Uganda, particularly in the health and education sectors. These issues are not new but are indicative of systemic weaknesses within decentralized payroll management.
The decentralization of the payroll system was primarily aimed at ensuring timely payments of salaries and pensions, eliminating ghost employees, and fostering transparency. “The reforms were generally well-received, with most LGs managing to disburse salaries promptly by the 28th day of each month,” the report noted. However, numerous problems persist despite these efforts.
One major issue highlighted is the continued payment to retired or deceased staff, exacerbating financial strains on LG budgets. “Incorrect payments and delays in updating the payroll records have been a recurring headache, costing significant amounts of public funds,” the report states.
Irregular recruitments, especially in primary and secondary schools, compound these payroll issues. The report cites several instances where human resource officers failed to adhere to standard salary instructions, leading to overpayments. “In districts like Pader, Oyam, and Soroti, salaries were often paid in incorrect notches, showing a clear misunderstanding or disregard of the guidelines provided,” an excerpt from the report reveals.
Moreover, issues of nepotism and inadequate oversight are rampant. “In Namisidwa District, for instance, recruitment exceeded the cleared plans, and many appointed individuals have not yet been integrated into the payroll,” the document details. This has led to a bloated workforce in some areas, with some staff not receiving salaries for positions they technically hold.
The challenges extend beyond just mismanagement. Financial underutilization also plagues LGs, with about Shs 3.1 trillion remaining unabsorbed. This underutilization is attributed to freezes on recruitment and the absence of district service commissions in areas like Mukono and Masindi, which severely impacts service delivery.
The report calls for urgent reforms and stricter oversight to curb these inefficiencies. “Cleaning up the payroll system requires more than just policy adjustments; it demands a concerted effort from all levels of government to enforce compliance and enhance operational transparency,” it concludes.
This detailed account from the Ministry of Finance serves as a call to action for Ugandan officials to address these deep-rooted issues that hinder effective governance and drain resources that could be better used to improve public services across the country.