The Auditor General, Edward Akol, warned against the increasing over payment of pensioners.
While handing over the auditor general’s report to the deputy speaker of Parliament on Wednesday, January 15th, 2025, Akol expressed concern about how over 1502 pensioners were overpaid gratuity benefits amounting to shs22.3 billion during the 2023/24 financial year.
He said the government overpaid several pensioners to the tune of about Shs31.2 billion in pension and gratuity.
“These over payments were in 19 Ministries, Departments, and Agencies (MDAs) and 115 Local Governments. In addition, 2,193 pensioners were overpaid pensioner benefits by UGX 8.9 billion, and this was in 23 MDAs and 104 local governments,” the report highlighted.
According to Akol’s report, without significant reforms, Ugandan taxpayers could face expenditures exceeding Shs4 trillion on pensions and gratuities by the year 2034.
“The sustainability of our pension system faces mounting pressure from multiple fronts, such as early retirement policies, allowing exits at the age of 45, enhanced pay for science professionals, among others. From my analysis, I project a 12% annual increase in retirees over the next decade, with pension liabilities exceeding UGX4.5 trillion annually by 2034, Akol explained.
Akol called for urgent intervention in addressing the human resource needs of Uganda’s health care sector, revealing that Mulago National Referral Hospital’s ICU is operating only 15 beds out of 27, which is just 56% of its capacity, due to staff shortages.
“Critical equipment remains unutilized in several hospitals because of a lack of trained personnel to operate them. The health infrastructure department of the Ministry of Health requires UGX20 billion annually for equipment maintenance but receives only UGX1.8 billion,” Akol said.
The Ministry of Health destroyed COVID-19 vaccines, ARVs, & test kits worth UGX 316.65 billion in 2023/24, which is an increase from drugs worth UGX 33 billion destroyed in 2022/23.
Recent discussions have highlighted the potential for further reforms that could integrate various pension schemes and improve the overall functionality of the system.
These reforms aim to make pensions more accessible and beneficial for all Ugandans, particularly those in the informal sector who represent a significant portion of the workforce.
