The Public Service Ministry is grappling with a financial hurdle as it seeks over Shs79 billion to compensate more than 2,170 government employees whose jobs are on the line due to the planned merger of several public agencies. This revelation comes as a result of the rationalization of public agencies, a move driven by the need for efficient and effective service delivery, as directed by the Cabinet on February 22, 2021.
The House Committee on Public Service and Local Government disclosed that the funds are crucial for addressing the imminent job losses, which include the elimination of 50 director positions and 52 commissioner positions, following a cabinet directive. Committee Chairperson, Mr Martin Ojara Mapenduzi, emphasized the urgency of compensating these workers, criticizing the Ministry of Public Service for categorizing it as an unfunded priority.
Mr Mapenduzi highlighted the importance of providing gratuity, severance packages, and pensions to those facing job abolishment, emphasizing the ethical responsibility towards the dedicated individuals who have served. The allocated budget of billions is intended to cover these compensation components, acknowledging the financial obligations tied to the workforce reduction.
The rationalization process, initiated with the abolition of the Rural Electrification Agency (REA), has faced resistance from affected agencies. Some entities raised concerns with Members of Parliament, arguing that the justification for the exercise lacked clarity and could negatively impact service delivery and the economy. In response, Speaker of Parliament, Ms Anita Among, established an ad hoc committee on September 2, 2021, to scrutinize the merger process.
The ad hoc committee’s findings aligned with the government’s decision to retain key institutions, such as the Bank of Uganda, Uganda Revenue Authority, and others, as semi-autonomous due to their critical roles. The Ministry of Public Service had recommended to Cabinet the retention of 80 out of 157 public agencies as semi-autonomous bodies, the reversion of mandates for 33 agencies to line ministries, and the consolidation or merger of 35 agencies into 19 entities.
Despite the proposed savings of Shs 998.12 billion annually for the government through this rationalization, the pressing issue remains the lack of funding for compensating those affected. In a telephone interview, Ms Catherine Bitarakwate, Permanent Secretary of the Ministry of Public Service, expressed the ministry’s stance, stating that further information would be provided based on any future decisions made by the government.
