By Insight Post Uganda
Kampala-Uganda
Another storm of scandal and controversy has erupted. The Uganda National Bureau of Standards (UNBS), an esteemed institution entrusted with safeguarding the nation’s economic integrity, finds itself shrouded in a cloud of great suspicion.
At the centre of this uproar stands David Livingstone Ebiru, the Executive Director of UNBS. He is accused of a grave transgression, misappropriating staggering UGX12.5 billion shillings. This shocking revelation has puzzled the nation, as it comes at a time when Uganda strives to reduce its daunting debt burden.
As a result, the future success of the country’s ambitious campaign now hangs in the balance, threatened by the alleged mismanagement of taxpayers’ money.
As the Parliamentary Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE) led by Joel Ssenyonyi launches a thorough investigation into the matter, the consequences of this apparent financial misconduct loom large over the horizon.
Ebiru had mismanaged the funds without getting the necessary permission from the Treasury Secretary and approval from Parliament. This was found in the Auditor General’s report regarding the financial records of UNBS for the period ending June 30, 2022.
Charles Musekuura, the Chairperson of the UNBS Board, told COSASE, Tuesday, that the director had caused a financial loss in the organisation and was involved in corruption and various improper actions.
In his account, Musekuura stated that UNBS has a special account where they receive funds from PVoC (Pre-Export Verification of Conformity) suppliers. This program aims to guarantee the quality and safety of imported goods by enforcing guidelines.
It further involves conducting inspections and verifying the goods before they are exported to Uganda and the government implements the PVoC through the UNBS. The objective is to provide assurance to Ugandan consumers that the imported products meet the required standards.
However, Musekuura mentions, that the funds from this account should be transferred to the Consolidated Fund on a special bureau’s account.
Still, information shared revealed that out of the total amount of $4.9 million (approx. UGX17,964,213,400) in the account, only $1.5 million (approx. UGX5,499,249,000) had been sent to the Consolidated Fund as required by law.
The remaining $3.4 million (approx. UGX12,464,964,400) was converted and used to support the operations of the bureau at its source, under the authority of the director (Ebiru).
Concerning this matter, it was stated that the use of the $3.4 million at the source was contrary to the law. It was emphasized that all actions taken at the bureau should be guided by legal requirements.
Additionally, it was mentioned that funds from the PvOC account were transferred to a Global Alliance for Improved Nutrition (GAIN) account, which is a program administered by the UNBS yet this specific account is intended to receive donations.
Retaining Staff With Cases To Answer
Out of the five staff members involved in a significant financial loss of approximately UGX9.2 billion, it appears that three of them are still working at the office.
When information about their involvement in malpractice came to light, the director took the initiative to establish an internal investigation committee.
The committee’s findings revealed that all five individuals could be held accountable for the malpractice. Their report was submitted to the director in October 2022.
However, instead of taking immediate action, the director ordered another investigation to determine the precise amount of the financial loss.
As a result, two of the staff members implicated in the malpractice have already left the bureau, while the remaining three are still employed and receiving salaries.
Musekuura expressed, “After the meeting, it was concluded that the Executive Director (ED) should review the report regarding the approximate amount of UGX9.3 billion.
Based on this evaluation, appropriate action should be taken. It is important to note that this report was an investigation report, not a disciplinary one. Therefore, during the management meeting, it was not perceived as a disciplinary matter.”
According to Musekuura, when he tried to inquire about the appropriate action to be taken by writing a letter to the director, conflicts within the organization started to arise.
Although the UNBS Council recommended a special audit to investigate the incidents at the bureau, he adds, the director did not allow it to take place.
Director Admits
When asked to explain the situation, the Director (Ebiru0 admitted that he violated the law by using funds without proper clearance, but he claimed there was an urgent need for it.
Ebiru explains that the bureau’s budget had been reduced by more than Shs20 billion, which impacted their core operational activities. “I wrote to the Secretary to the Treasury, expressing concerns that this limitation would hinder the bureau’s ability to fulfil staff obligations, such as gratuity payments,” he states.
Still, Ebiru noted that he did not have the exact figures readily available regarding the amount of money he spent at the source but assured that he would provide the figures in the next meeting.
The committee Chairperson -Ssenyonyi raised a point regarding Ebiru’s request for a supplementary budget of UGX27 billion and questioned whether this amount corresponded to the funds used at the source.
However, the committee requested the bureau to furnish comprehensive documentary evidence regarding the transactions, which encompasses certified bank statements, official meeting minutes, as well as letters and correspondences from the minister in charge.
Analysis On The Impact
According to our analysis desk, the impact of Ebiru’s actions means that a substantial amount of taxpayers’ money, UGX12.5 billion shillings in this case, has been misused or openly embezzled by the trusted custodians of the bureau. This represents a direct loss of funds that could have been used for public services, infrastructure development, or other essential government initiatives.
Mismanaging the said amount of money can have a detrimental effect on the delivery of public services. The funds that were intended to be allocated for the betterment of society may now be unavailable, leading to a potential reduction in the quality and availability of services such as healthcare, education, infrastructure, and social welfare programs.
Currently, trust in government institutions is gradually diminishing as the tax burden keeps falling back on taxpayers. When taxpayers witness their hard-earned money being misused or mismanaged, it undermines confidence in the system and can lead to a sense of disillusionment and cynicism.
This means that the government has to increase taxes to recover the lost funds yet the perpetrators continue holding their offices and nothing is done to press them to recover the lost amount.
The failure to address the mismanagement of funds and hold those responsible accountable can contribute to a culture of complacency within state institutions.
When implicated officials are not compelled to return misappropriated funds, it can lead to frustration among taxpayers. This lack of urgency in recovering state funds has further compounded the issue and intensified public dissatisfaction which leads to deliberate refusal to pay taxes.
Debt Burden To Rise
Engaging in misappropriation of funds and financial misconduct hinders a country’s path towards achieving freedom from debt, rather than alleviating the burden. In reality, such practices only intensify the weight of debt and impede the country’s ability to attain a debt-free status.
To achieve a debt-free burden, Uganda typically needs to practice prudent financial management, promote transparency and accountability, and implement effective measures to combat corruption and financial misconduct.
By ensuring that public funds are properly allocated, spent efficiently, and invested in productive sectors, the country can work towards reducing its debt burden and creating a more sustainable financial future.
Reducing a country’s debt burden requires careful fiscal management, including responsible spending, efficient allocation of resources, and effective debt repayment strategies.
However, when funds are misappropriated or mismanaged, it leads to financial losses and can create budget deficits. This, in turn, may force the government to resort to additional borrowing to cover the shortfall, thereby increasing the overall debt burden.
Therefore, to achieve a successful campaign to reduce the debt burden, it is crucial for a country to address and prevent practices involving financial misconduct, ensure transparency and accountability in public financial management, and implement robust measures to combat corruption.
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