Auditor General Warns of Pension Crisis

In addition to this, 2,193 pensioners were overpaid pension benefits amounting to Shs8.9 billion across 23 MDAs and 104 Local Governments.

Taxpayers could face a staggering annual pension burden of over Shs4.5 trillion by 2034 unless urgent reforms are implemented in the government’s pension sector, the Auditor General Edward Akol has warned.

Speaking during the handover of the 2023/24 Annual Auditor General’s Report to Parliament this morning, Akol highlighted significant mismanagement of pension funds, revealing that overpayments to pensioners have already cost the government a shocking Shs31.2 billion.

“The pension system audit has revealed critical challenges that demand attention,” Akol stated.

“I noted that 1,502 pensioners were overpaid gratuity benefits totaling Shs22.3 billion. These overpayments occurred in 19 Ministries, Departments, and Agencies (MDAs) as well as 115 Local Governments.”

In addition to this, 2,193 pensioners were overpaid pension benefits amounting to Shs8.9 billion across 23 MDAs and 104 Local Governments.

The Auditor General emphasized the urgent need for reforms, warning that if the current trajectory continues, the pension sector will impose an unsustainable financial burden on Ugandan taxpayers.

AG Akol attributed the irregularities to weak internal controls, poor record-keeping, and a lack of accountability within key government institutions.

He called for a thorough review of the pension management system to prevent further losses and ensure that public funds are used effectively.

The Cost of Inaction

Experts have long pointed to systemic inefficiencies in Uganda's pension system. Akol’s report serves as a wake-up call for policymakers to prioritize reforms, including robust verification systems, to curb wastage and overpayment.

Parliament is expected to scrutinize the report and demand accountability from the implicated MDAs and Local Governments.

As the government grapples with an escalating pension bill, stakeholders hope that Akol's findings will spark long-overdue action.

This revelation underscores the urgency of addressing the inefficiencies plaguing Uganda’s pension sector to protect taxpayers from bearing an unbearable financial burden in the years to come.