THE EAST AFRICAN-NAIROBI-KENYA
Regional
Monday, December 16, 2002
Panic at URA as Sebutinde Commission Delays Report
A JOINT REPORT
THE EASTAFRICAN
THE DELAY by the Sebutinde Commission in compiling its report on corruption in the Uganda Revenue Authority (URA) has reportedly caused panic at URA offices as many employees are afraid that their names will be included in the list of officials to be interdicted.
The Judicial Commission of Inquiry into Corruption in the Uganda Revenue Authority � chaired by Justice Julia Sebutinde � has been investigating URA for more than three months and is already behind schedule by more than two months, its initial deadline having expired in September.
The delay is also likely to affect the implementation of URA's five-year corporate plan, which lays out how the authority intends to achieve the government target of raising tax revenue by half a percentage point at the beginning of the current financial year, of which there are now only six months left.
The URA probe is scheduled to continue with public hearings this week, delaying further the compilation of its much awaited report of findings.
In the government's Letter of Intent and Memorandum of Economic and Financial Policies submitted to the International Monetary Fund last August, Finance Minister Gerald Sendawula had promised that the Sebutinde Commission would conclude investigations of all allegations of corrupt behaviour by URA staff by the end of September 2002.
The letter of intent, submitted August 27, describes the policies the Uganda government intends to implement during 2002-04 period in the context of its request for financial support under a three-year, $17.8 million poverty reduction and growth facility (PRGF) from the IMF, effective the current financial year.
The commission was scheduled to write its report in October, recommending appropriate remedial action, including employment termination/criminal prosecution, by the beginning of November.
All staff found to be corrupt were to be sacked by this month, according to Mr Sendawula.
Following the retrenchment of corrupt staff identified by the Commission of Inquiry, the remuneration of URA staff was expected to be raised.
However, Justice Sebutinde has already indicated that she will not recommend a pay increase.
The public hearing revealed serious irregularities in the declaration of assets, liabilities and income by URA staff. In January, the URA applied in full to all of its staff the stringent income and wealth-reporting requirements, specified by the new Leadership Code Bill, which was passed by parliament in April.
They were also made to fill separate wealth declaration forms in February and March specifically for the Sebutinde commission.
The commission has been verifying the declarations, and is expected to recommend in its report, the dismissal and/or prosecution of all the officials whose declarations were found to be false. More than 130 officials appeared before the commission during the public hearings of whom most were found to have grossly underdeclared their wealth.
The government is under pressure to speed up its efforts to improve tax administration by eradicating corruption in the URA in order to achieve its target of increasing its revenue-GDP ratio by half a percentage point every year, until 2005/06. Thus, the government's programme for the 2002/03 financial year will aim at increasing revenue to 12.3 per cent of GDP, from 11.8 per cent in 2001/02.
The planned increase in revenue collection by 0.5 per cent of GDP is being sought primarily through actions designed to enhance tax administration, including a strengthening of tax enforcement and compliance. The URA Commissioner General, Annebrit Aslund, has announced a policy of zero-tolerance on corruption and asked URA staff and the general public to provide specific information regarding employees engaged in corrupt practices.
Analysts have said the delay in finalising the investigations was bound to affect the implementation of the URA business plan for revenue enhancement and could in the process derail the government's revenue targets.
To ensure the URA is on track to achieve the revenue targets, the government is supposed to undertake quarterly reviews of revenue performance by tax category, in order to identify sources of underperformance early enough for remedial action to be undertaken.
For the past four years, the URA has been falling short of targets, but the government is now determined to reverse that trend.
In addition, Mr Sendawula announced in his budget speech for 2002/03 several new tax measures that are now being implemented.
They include an increase in excise on motor vehicles, petrol, and fees and charges on the Traffic Act.
The minister said he intended to narrow the fiscal gap progressively by simultaneously increasing tax revenue and curtailing the growth of public expenditure. In relation to GDP, the fiscal deficit, which has been widening since 1987, reached 12.6 per cent compared with the 12.2 per cent of GDP envisaged in the budget, as revenues fell below target and public expenditure continued to rise.
Meanwhile, URA last week launched a taxpayers' charter, which spells out the rights of a taxpayer. The charter has been translated into seven local languages.
Report by Richard Hasunira and Gertrude Kamuze
Comments\Views about this article
Do you Yahoo!?
Yahoo! Mail Plus - Powerful. Affordable. Sign up now
