The December 2023 report by Auditor General (AG) John Muwanga has shed light on financial discrepancies within the Uganda Railway Corporation (URC), indicating significant challenges in financial management and operational oversight. Among the key revelations is the disbursement of excess cash totaling Shs1.1 billion to URC staff between July 2022 and June 2023.
During this period, the corporation employed 342 staff members, with only 311 employees undergoing verification. Shockingly, 43 staff members were found to have been paid using incorrect salary scales, resulting in overpayments amounting to Shs1.1 billion and underpayments totaling Shs127.4 million.
The misallocation of funds is attributed to erroneous salary calculations, where some employees received salaries higher than their designated base pay, while others received less. This oversight not only raises concerns about financial accountability but also underscores the importance of accurate payroll management within public institutions.
In addition to payroll discrepancies, the report highlights other financial irregularities within URC, including a significant increase in administrative expenses. Expenditure on administrative costs, such as contract staff salaries, legal expenses, and consultancy services, surged by 67.7 percent from Shs19.2 billion in the previous fiscal year to Shs31.2 billion in FY2022/23.
Despite these revelations, officials from URC have yet to provide a comprehensive response to the findings outlined in the AG’s report. While spokesperson John Linonn Sengendo acknowledged receipt of the report, stating that the corporation is currently reviewing its contents, concrete actions to address the identified issues remain pending.
One of the critical concerns raised by the AG’s report is the failure of URC to fulfill its financial obligations, including the payment of staff gratuity amounting to Shs4 billion over four financial years. This failure not only reflects a breach of employee rights but also highlights systemic weaknesses in financial planning and management.
Moreover, the report indicates a lack of adequate monitoring and oversight mechanisms regarding revenue-generating activities, particularly in relation to external partnerships. URC’s engagement with Mango Tree (U) Ltd, the operator of Marine Vessel (MV) Pamba, lacks formal operating lease arrangements, raising questions about accountability and transparency in public-private partnerships (PPPs).
Furthermore, URC’s staffing challenges, with only 348 out of 729 approved positions filled, exacerbate operational inefficiencies and hinder service delivery. The corporation’s failure to fill critical positions and recruit staff according to approved structures compromises its ability to meet operational demands effectively.
In light of these findings, the report underscores the urgent need for URC to address governance gaps, enhance financial transparency, and strengthen internal controls. Additionally, the corporation must prioritize staff recruitment and capacity-building initiatives to bridge existing gaps and improve service delivery standards.
As URC grapples with the fallout from the AG’s report, stakeholders await concrete measures from management to address the identified shortcomings and restore public trust in the corporation’s operations. Only through proactive reforms and sustained efforts to enhance accountability can URC regain its footing and fulfill its mandate effectively in Uganda’s transportation sector.
