The Auditor General, Edward Akol has warned that Uganda’s taxpayers may face a hefty bill of over 4.5 trillion shillings in pension and gratuity payments by 2034 if reforms are not implemented in the government’s pension sector. 

Akol issued the warning while handing over the 2023/24 Annual Auditor General’s report to Parliament.

According to Akol, the Government overpaid several pensioners to the tune of 31.2 billion shillings. 

He also revealed that the pension sector’s sustainability is under pressure from various factors, including early retirement policies and enhanced pay for science professionals. Akol also projected a 12% annual increase in retirees over the next decade.

The Auditor General office also conducted four thematic audits, including the Parish Development Model Pension Payroll audit and management of procurements in Government.

However, he warned of numerous challenges facing the pension sector, characterized by overpayment of beneficiaries. Akol noted that his office had planned to undertake 3,002 audits during the period under review but was only able to complete 2,832 audits.

Akol also expressed concerns over the low absorption of funds in the national budget, which he said is affecting service delivery. 

The Office of the Auditor General further raised alarm on the fiscal deficit within Government, highlighting a growth in domestic revenue and expenditure. Additionally, Uganda’s external debt grew by 2.2%, primarily driven by borrowing from multilateral creditors.

By Francis Lubega

16 Nov 2024

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