Auditor General to audit pension
Auditor General John Muwanga hands over his 2022/2023 annual report on how taxpayers’ money was spent to Speaker Anita Among at Parliament on January 9, 2024. Photo/David Lubowa
What you need to know:
- Through this audit, the OAG said it will also validate and confirm the numbers and retirement benefits, provide “input in establishing a comprehensive database for Government of Uganda pensioners,” and “make a projection of the gratuity and pension bill for the 2024/2025 financial year including accumulated arrears.”
The Office of the Auditor General (OAG) has announced a special audit on the pension and gratuity management processes, which will include the headcount of pensioners in the country.
In their public notice yesterday, the OAG said following the request from the Finance ministry, they embarked on the exercise aimed at “establishing the effectiveness” of the processes and “recommend remedial measures.”
Specifically, the OAG said their auditors would establish whether bonafide pensioners are on the payroll and are being paid the right rates.
Through this audit, the OAG said it will also validate and confirm the numbers and retirement benefits, provide “input in establishing a comprehensive database for Government of Uganda pensioners,” and “make a projection of the gratuity and pension bill for the 2024/2025 financial year including accumulated arrears.”
“The Office of the Auditor General is currently undertaking review and analysis of documents to understand the Pension and Gratuity Payroll management processes and obtain evidence to support findings and conclusions,” the notice reads in part.
Among the documents being reviewed are the entity pension payroll and gratuity payments, pensioners’ lists, payment files, pensioners’ personal files, and budgets and work plans, among others.
The audit is going to cover the Pension and Gratuity payroll from Financial Year 2019/2020 to December 31, 2023 but earlier or later periods may be referred to, for purposes of clarity of some aspects of the audit, according to information from the OAG.
The special audit comes amid media reports that some pensioners face endless struggles to access their pensions, thus affecting their quality of life after retirement.
Some of the pensioners during a meeting convened by the State House Anti-Corruption Unit at Kibuku Secondary School in Kibuku District on September 4, 2023. Photo/Mudangha Kolyangha
In his report to Parliament for 2019/2020 Financial Year, the Auditor General, Mr John Muwanga, said of 174 Local Governments, 11 of them had not paid pension and gratuity to pensioners, accumulating pension and gratuity arrears to the tune of Shs5.8billion.
Mr Muwanga noted in the report: “Accumulation of pension and gratuity arrears poses challenges to the claimants and beats the purpose for which gratuity and pension is paid after retirement.”
After the review and analysis (Phase I), which will be completed by the end of May 2024, the OAG said there would be a Phase II where “a physical headcount of pensioners will be conducted on dates to be communicated”.
“The head count will involve the physical attendance improvements in policy and management of pensioners or beneficiaries and presentation of processes relevant documents. Pensioners or beneficiaries will be required to appear at the nearest validation centres irrespective of where they retired,” the notice reads.
Categories
According to the OAG, the categories of pensioners to be validated include pensioners/beneficiaries who are on the payroll, and pensioners not on the payroll but have been verified as legitimate pensioners by the former employer.
Others include mainstream public service, UPDF, Judiciary, those under Court Order, and pensioners under Administrator General.
“The head count will be conducted from designated validation centres at districts, cities, municipal council headquarters and at division headquarters for Kampala Capital City,” the notice reads further.
According to the OAG, documents required for physical headcount include appointment letters, confirmation letters, retirement letters/certificates, national identity cards, letters of administration/grant of probate, an introduction letter from the Accounting Officer where necessary and any other documentation relevant in confirming retirement status.
