Excessive bureaucracy in the public sector is a hotbed for corruption. Add greed, some guile, a good measure of networking and regularly sprinkle with cash and you have a well-oiled predatory system in place.
This is not saying bureaucracy is bad. A good bureaucracy makes sure things are done the way they are supposed to be done, quickly and efficiently. This allows citizens to participate in various activities that contribute towards the country’s economic growth.
The bad version is about squeezing whatever is possible from the same citizens as the price for getting anything useful done. Uganda has a bit of both, but the former version and gets all the publicity which keeps tarnishing the country’s image. In some circles, corruption in Uganda has been described as a ‘disease’, but curing it has proven to be exhausting.
Under the overarching Zero-Tolerance to Corruption Policy, the government’s five year National Anti-Corruption Strategy (2019/20-2023/24), ended last year. Yet, Transparency International ranks Uganda at 141 out of 180 countries and within the East African Community, the country lags behind Rwanda, Tanzania and Kenya.
Betty Kamya, the Inspector General of Government (IGG) says getting rid of corruption has the potential of saving Uganda over UGX10 trillion per year, which is close to half of the government’s current annual tax revenues.
The same money the ‘system’ is siphoning off could substantially ease the government’s fiscal deficit and reduce the tax burden on Uganda’s most easily targeted businesses. It can also pay for the proposed SGR or 50% of the planned oil refinery in Hoima.
Addressing a gathering of vocational students, whose institute’s management was being investigated for fraud in 2023, Kamya said: “Corruption hurts all of us so much. That is why it is everybody’s duty to get involved in fighting it. I am not saying you take up sticks and stones and throw them—no. But wherever you are, you can get a brick into the wall against corruption.”
Last year, in neighbouring Kenya, and amidst a cost of living crisis, the issue of corruption had become so inflammatory, the government agreed to invite the International Monetary Fund (IMF) to carry out a Governance Diagnostics (GD). The IMF Mission is expected to arrive in Nairobi anytime soon to begin its work.
It partly took sticks and stones, as mentioned by Kamya, to convince senior Kenyan authorities to take up an earlier IMF offer to help. Prime Cabinet Secretary, Musalia Mudavadi said in October, “On our own volition, we have requested for governance and corruption diagnosis and I signed off that request on behalf of the Government of Kenya.”
Does Uganda need to do the same? As portrayed by the IGG and the constant clamour from the general public, the situation is dire. Apparently, the political will is there, although setting aside the resources may pose a problem, bearing in mind the IGG and all other anti-corruption agencies are severely underfunded.
A GD is not for free. However, the IMF does see it as a service to help member countries improve their governance practices. A host government has to voluntarily make a request and foot the bills for the whole process. In return, you get a set of recommendations for addressing corruption vulnerabilities and strengthening integrity and governance. Whether or not you implement them is up to you.
There are six core areas of analysis, namely fiscal governance, central bank governance and operations, financial sector oversight, market regulation, rule of law, and AML-CFT (money laundering). Following the analysis, GDs prioritize and sequence recommendations for systematically addressing the vulnerabilities. The recommendations can also be used as pointers when the relevant government next asks for IMF financial assistance.
The Washington-based multilateral lender, says genuine cooperation between IMF staff and authorities is essential for a successful GD. It requires the authorities’ commitment to constructively organize missions and provide timely access to all necessary information. We are talking about strangers poking their noses in all sorts of places, asking endless questions and demanding answers.
Over several months, the Mission team members will also want to sit down with civil society organizations, the private sector, think tanks, and academia for the purpose of obtaining their perspectives.
Like all diagnostics it would be extremely intrusive, a fact that may cause concerns for our decision-makers and some second thoughts. The much heralded Lifestyle Audit announced by the IGG a couple of years ago, came with a bang and disappeared without a whimper.
There is another important condition, related to washing dirty linen in public. To encourage transparency and facilitate extensive support from all key stakeholders on governance reforms, an IMF Governance Diagnostic must be published – although at the prerogative of country authorities.
Combating corruption can be demoralizing and the challenge is staying the course. But giving up leads to a steady decline of the public trust in government and makes it harder to trust government institutions and officials with your taxes.
Andrew Laing is the Director and Founder of Artificial Fiscal Intelligence, a startup designed to help governments develop and apply fiscal intelligence for better fiscal outcomes.
Five years ago, he laid out a general description of public sector corruption that partially mirrors Uganda’s circumstances. ‘People with power and influence, such as politicians, public officials, and business owners pay for budget allocations and allotments, pay for contracts, pay to vary a contract, pay to verify that a road was built (when it wasn’t), and pay to get paid’.
Laing continues: ‘They pay to clear audit irregularities whether those are real or otherwise. They pay for positions in government and public corporations, pay to cover tracks in the accounting system, pay for access to lucrative government assets or for favourable treatments on debts. They bribe public officials for low assessments of tax liabilities, low valuation of goods at customs, and favorable concessions and royalty treatments in extractive industries’.
In an interview towards the end of 2024, Matia Kasaija, the finance minister, touched on allegations about corruption within his own Ministry. “The biggest problem is how to catch them, because they have a chain. It is like when you are playing a basketball game. You throw the ball to one player and the other player picks it until they score,” he said.
With due respect to Kasaija, at his age, keeping up with the players in this game would definitely require supernatural abilities. However, he has also said low public sector pay was a major reason why corruption flourished.
In the National Development Plan III, it is stated that addressing corruption is crucial as it can significantly hinder development by diverting resources, discouraging investment, and undermining public trust in government services.
Tackling it requires strengthening anti-corruption institutions, promoting transparency, and enhancing accountability mechanisms. Can Uganda afford not to have an IMF Governance Diagnostic?
Fielding a question in November about the GD for Kenya, Haimanot Teferra, Mission Chief for Kenya, IMF said, “This is a request that came from the authorities in terms of thinking about how to address governance comprehensively. It’s a diagnostic, as the name implies, and it will identify as you know, where are the governance weaknesses in institutions that make those institutions susceptible to corruption. And then they will have recommendations. So, it is something that not only us, but all other development partners or even stakeholders within Kenya can look at and think about how to address, including the government.”
A predator is most dangerous when cornered. The ‘system’ will not go down without a fight, which may mean numerous unwelcome repercussions. If Uganda were to miraculously request for an IMF Governance Diagnostic, you can be sure of plenty of fireworks to rival any New Year celebration.
