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Districts lose billions in pay scam
National
PRIME
Districts lose billions in pay scam
Thursday, March 30, 2023
Uganda's legal tender. The forensic audit reveals that taxpayers lost Shs39b while employees and pensioners were robbed of up to Shs41.1b. PHOTO | COURTESY
By Elizabeth Kamurungi
What you need to know:
The records show gross payroll mismanagement at local governments despite interventions by the Ministry of Public Service. For example, Shs1b was paid to 795 staff who had either retired, transferred, absconded or died with the worst delays ranging from one to 16 months.
Tax payers lost in excess of Shs80 billion in illegal or questionable payments to more than 28,000 district and other local government (LG) workers, according to a new report by the Auditor General (AG).
The salary forensic audit for the year ending June 2022, which has become available to this newspaper only now, found a litany of overpayments, underpayments and cases of illegal payroll access and deductions.
It unearths delayed removal of the dead from payrolls or stop to payments to ineligible persons. There are also anomalies relating to under-remittance, inaccurate computation of pension and gratuity, and non-deduction and under-deduction of Pay As You Earn (PAYE).
In some cases, officials used wrong formula to compute statutory deductions. According to the report, the payroll glitches have deprived thousands of government employees of rightful pay due to underpayments and use of wrong salary scales.
The forensic audit reveals that taxpayers lost Shs39b while employees and pensioners were robbed of up to Shs41.1b.
The records show gross payroll mismanagement at local governments despite interventions by the Ministry of Public Service. For example, Shs1b was paid to 795 staff who had either retired, transferred, absconded or died with the worst delays ranging from one to 16 months.
An audit of payrolls of 129 local governments found that Shs19b
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