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URA corruption probe report details revealed
By Vision Reporter
IN the long-awaited report of her probe into corruption in the Uganda Revenue Authority, Justice Julia Ssebutinde (pictured) mostly blames political interference, under-qualified top managers, staff job insecurity, poor terms and conditions of service and complex tax laws for the loss of hundreds of billions of shillings by the tax body.
According to the voluminous report which Cabinet considered on Tuesday, URA is infested with bribery, abetting tax evasion, nepotism, cronyism, sectarianism, smuggling, dumping, fraud, under-valuation of taxable goods, and conversion or embezzlement of even the little tax collected.
The commission identified a number of internal and external factors exacerbating corruption and inefficiency in URA. Some of the internal factors include poor leadership; poor management policies; unstable organisational structures; weak
administrative and procedural controls; inadequate logistical support; poor terms and conditions of service and staff indiscipline.
The report blames political patronage and a poor tax-paying culture on the part of the public as external factors.
According to the report, Annebrit Aslund, a Swedish expatriate, is an economist by profession and has some experience in auditing, accounting and taxation issues but has no experience in managing a large financial organisation. The report says the Commissioner General (CG) should be a corporate manager with considerable experience in managing a large financial organisation. It recommends that the qualifications for the CG be specified in the URA Statute.
The URA board was found wanting and the commission noted the strange situation where the CG is no longer answerable to it. It is recommended that a technically qualified board be appointed.
Ssebutinde was harsh on several government officials, includi
ng the Minister of Finance, her appointing authority. She takes a swipe at Gerald Ssendaula for not preventing the loss of sh2.5b in tax evasion by Mastermind, a tobacco importing company.
Others whose work she found sloppy in some cases were Stephen Akabway, Justine Zake, Feddy Mwerinde and Jack Bigirwa. However, Ssebutinde praises some officials like Allen Kagina, Enoch Muganga and Adrian Kyamugina for their cooperation and professionalism.
The report decries activities of State House operatives like Kenneth Kaitare in tax collection. She blames the involvement of such people and the creation of bodies like Team Five, Special Revenue Protection Services and Anti Smuggling Unit for eroding the autonomy of URA.
The commission established that a large number of URA staff engage in private income generating activities which are likely to interfere with their working hours in the URA, or are in areas where there is a possibility of conflict with URA inte
rests. This is in contravention of the Human Resource Management Manual (HRMM).
For example, the commission found a number of customs officials who own clearing and forwarding companies. It also established that in most cases, the concerned employees do not declare the additional income generated from the private business, nor do they pay taxes thereon.
The commission found that the URA management has been lax in enforcing the relevant provisions of the HRMM. It dismissed the excuse given by management for non-enforcement that the HRMM does not define the �areas where there is any possibility of conflict�.
URA, according to the report, lacks serious anti-corruption policies. In many instances, says the report, it was discovered that the cure for inefficiency had already been invented, for example by �the Coopers and Lybrand Committee of 1990, but for some unknown reason, the URA has over the years, veered from the original vision�.
Ssebutinde
singles out 35 officers who should be dealt with for either non-declaration, mis-declaration, or under declaration of their assets.
They are: James Tumuhimbise Ahimbisibwe; Kashumba Arinaitwe; John Henry Ariong; Julius Kateba Aryatwijuka; Kenneth Apollo Bagamuhunda; Steven Sherura Bainenaama; Amos Bagyenzi; Shem Twine Barugire; Jack Lucas Bigirwa; Jolly Kamusiime Busingye; Francis Owak Byamugisha; Gad Habyarimana; Badru Isabirye; Daniel Kalule; Nazarius Kamugisha; Benon Kazoora; Samuel Manana; Joy Kazaire Mubangizi; Jack Bahuku Mucunguzi; Joash Muhumuza; Feddy Mwerinde; Patrick Mwesige; Margaret Namatovu; David Lincoln Ndawula; Steven Nzabonimpa; Gerald Ozelle Ocamker; Gabriel Earns Okas; Leo Orisinga; Nicholas Andiwa Owacgiu; Justus Rugyengye; Paul Tumuhairwe; Bonnie Sekindi Tumushabe; Henry Twesiime; George Twinomujuni and Nobert Bukorwe Uwizera.
Ssebutinde recommends that they face disciplinary action under Section 4.5(d) of the
HRMM. �Where an employee has been found to be openly dishonest in concealing his wealth or in acquiring wealth that cannot be shown to have been obtained through legitimate means; or to have evaded tax on his additional income, the commission strongly recommends termination of service coupled with prosecution, as the only way of seriously combating corruption in the URA,� she writes.
The report also notes the zeal with which URA staff collect from missionary bodies exempted from taxes. In particular, the Comboni missionaries and Verona Fathers have for years been made to pay for their vehicles which are clearly exempt. Ssebutinde says URA must refund their money.
Ends
Published on: Sunday, 14th March, 2004 |
