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UG Standard - Latest News
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SPOTLIGHT: Finance Ministry, URA embroiled in UGX14.6b bonus controversy

by WINNIE NAKAMATTE | REPORTER
18/10/2024
in Business, National
Reading Time: 1 min read
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Ramathan Ggoobi, the permanent secretary to the ministry of finance and secretary to the treasury -PSST
Ramathan Ggoobi, the permanent secretary to the Ministry of finance and secretary to the Treasury (PHOTO /Courtesy)

Uganda’s Finance Ministry is facing scrutiny over a Shs14.6 billion bonus payout to Uganda Revenue Authority (URA) staff, sparking concerns of irregularities and disregard for parliamentary processes.

The controversy surrounds a discrepancy in the bonus figures, with URA requesting Shs11.6 billion but the Finance Minister approving Shs14.6 billion without parliamentary approval.

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Speaker of Parliament Anita Among has ordered the Finance Minister to explain the anomaly, citing concerns over the ministry’s disregard for parliamentary processes.

The Auditor General’s report flagged the payment as irregular, bypassing established procedures. According to the report, the Permanent Secretary/Secretary to the Treasury had failed to initiate the approval process in time.

The Public Accounts Committee-Central Government has recommended action against the minister, labeling the incident “contempt of Parliament.” Committee chairperson Muwanga Kivumbi emphasized that the approval process was not completed in time.

Finance Ministry spokesperson Jim Mugunga defended the bonus scheme, stating it exists to enable URA to perform above set targets, with payments following the approval system.

URA Commissioner General stated that any expenditures at the Authority are done with approval by the minister and declined to comment further until he peruses the report.

The incident raises questions about transparency and accountability in Uganda’s financial management, with many calling for clarification on the source of the additional Shs3 billion.

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Tags: AccountabilityAuditor GeneralBonus ControversyContempt of ParliamentFinance MinistryFinancial ManagementGovernment SpendingIrregular PaymentParliamentary Approvalpublic accounts committeeTransparencyUgandaURa

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