By John V Sserwaniko
Recently President Museveni chaired a cabinet meeting in Entebbe State House where Ministers unanimously agreed on government Agencies that should be retained, mainstreamed and merged or consolidated. Whereas officially these are the polite words being used in confidential cabinet documents this news website has seen relating to this matter, the bitter truth is that a total of 87 agencies are to be scrapped including UNRA whose fate we have previously reported about. The detailed confidential cabinet memo, which we have glanced upon, shows that a total of 146 agencies (resident in 22 ministries) were studied with a view of ending duplication and wastage of scarce government resources. Conducted by a team of highly qualified technocrats, that were closely supervised by Premier Ruhakana Rugunda and Gen Salim Saleh, the cabinet study was undertaken on the prompting of the President who in the 17th July 2017 letter called for the reorganizing of government. Museveni was concerned that the operational expenses, resulting from duplication and salary disparities, were increasing at a rate higher than what government would sustainably afford. He demanded this wasteful public expenditure must end and gave Rugunda limited time to report back. We have separately established that the big man’s intervention was timely and saved this country further resource wastage because as of July 2017, a syndicate of selfish powerful officials had prepared 16 bills for presentation before Parliament seeking to establish 16 new agencies. This would cause more resource hemorrhage. This plan stalled after the President weighed in via his letter cautioning against this habit.
WHY AGENCIES?
Our own research shows these agencies’ creation became fashionable mostly in 2000 after donors made it a condition to qualify for funding. It’s also true some senior seasoned technocrats used their clout to lobby for creation of these agencies in order to access better remuneration and conditions of work than what the conventional public service offered. Some resulted from Uganda’s ratification of international instruments. UBOS is a good example because Uganda became obliged to create it after ratifying the protocol creating the African Statistics Charter. Museveni acquiesced to all this in good faith after it was impressed on him that the agencies would improve service delivery, increase government visibility, increase accountability and become models of excellence on which the traditional public service would benchmark to promote best management practices. This never happened and instead the confidential cabinet memo (titled Review & Rationalization of Government Agencies/Authorities) immediate disbandment of most of the agencies.
SAVING 800BN;
The Hakuna Mchezo cabinet wants rationalization immediately implemented because government will instantly save a total of Shs889.7bn the moment the recommendations are implemented. This will be saved annually in the short run and gradually much more will be saved. The saving will result from government spending much less on salaries, gratuity, social security contribution, medical expenses and operational costs like rent. The Shs889.7bn is broken down as follows: Shs226bn from merging some entities as recommended and Shs664bn from reverting some agencies to mother ministries. From the language of the report, it’s clear that mainstreaming is the same as disbanding an agency. The report says that rationalization will on average improve efficiency in service delivery up to 80%. The cabinet memo strictly discourages salary to holder arrangements meaning agency employees opting staying on and integrating into mother ministries will have to do with the public service salary that is way below what they have been pocketing under the wet agencies.
POLITICAL IMPLICATIONS;
If fully implemented, the rationalization report will in some way cost Museveni politically hoping he will have the guts to implement it 100%. The groceries he has been having at his disposal to dispense patronage are clearly going to significantly diminish. For instance all governing boards for government entities that don’t generate any revenue (only spending like UNRA has been) are to immediately be disbanded. The people managing those entities will be reporting directly to the ministers/political leaders as opposed to reporting through the Board. This is one area Museveni has been rewarding his loyal cadres who lose elections. Some entities like NEMA have been paying between Shs7m-14m to Board members who aren’t even executive. They just come for occasional meetings and the Shs14m patronage would be disguised as monthly retainer. Indeed such boards are full of former MPs who fail to get reelected and President has always been bound to continue looking after. Some are even facilitated to access specialized treatment abroad-all at the expense of service delivery. Depending on how versatile the CEO is, some board members enjoy more generous benefits beyond the retainer and Allen Kagina is partly in trouble at UNRA for not being able to generously “look after” board members. You abolish all that patronage infrastructure you leave Museveni politically more vulnerable as there will be less groceries for him to dispense. Some former MPs sit on more than one boards, a thing that enhances financial survival outside Parliament. The cabinet memo and rationalization report categorically abolish Board multiple membership even for the case of revenue-generating entities that will be free to retain governing boards. This is further bad news for NRM loyalists that have financially been thriving on board allowances and retainers. In what will further hurt NRM political mobilization, the rationalization report recommends the scrapping of all ministries resident in the OPM.
The idea is that the OPM should concentrate its human and financial resources on coordination and supervision of the performance of the entire government in service delivery areas. This means that ministries that were created clearly for political mobilization to deliver reelection votes for the big man and his NRM party will be no more. These include Luwero Triangle, the Teso Affairs Ministry, Karamoja Affairs Ministry and the one for Northern Uganda. They are currently held by Dennis Ssozi Galabuzi, Jaff Agnes Akiror, John Byabagambi and Grace Kwiyucwiny. There is also Ernest Kiiza for Bunyoro Affairs.
87 AGENCIES AFFECTED;
Whereas the memo does away with 87 agencies (merging 62 & dissolving 25 reverting to mother ministries), there are some 58 lucky agencies that are recommended for retention. Those to be done away with include Kaddunabi Lubega’s Insurance Regulatory Authority, Uganda Retirement Benefits Regulatory Authority (URBRA), Capital Markets Authority (CMA) and newly created Uganda Microfinance Regulatory Authority. Instead a Directorate of non-bank supervision will be created in Bank of Uganda and dissolve the 4 agencies therein. In the alternative; create a non-bank regulatory authority encompassing all the mandates these 4 have been executing. It’s our view that this is a prudent move because the financial services sector has been over regulated leading to duplication of roles by seven (7) entities namely BoU, CMA, IRA, URBRA, Lottery & Gaming Regulatory Body, Sydney Asubo’s Finance Intelligence Authority (FIA) & Uganda Microfinance Regulatory Authority. Still under the Accountability Sector, three financial institutions are to be done away with so that something more comprehensive can be created in their place. They include PostBank Uganda, Pride Microfinance and Microfinance Support Center (MSC) whose scandalous practices we reported about earlier this week. Museveni wants the three consolidated into one publicly-owned Commercial Bank “with a mission to support development of productive activities of the private sector.” To adequately capitalize the new commercial bank, shares will be listed to the public through issuance of IPO.
TRADE/INVESTMENT SECTOR;
In this case, Jolly Kaguhangire’s Uganda Investment Authority (UIA), Charles Ocic’s Enterprise Uganda Foundation Ltd, Uganda Export Promotions Board, Uganda Free Zone’s Authority & Gideon Bagadawa’s Private Sector Foundation of Uganda (PSFU) are to be done away with. And what happens? They are to be merged into one Authority with specialized directorates and departments “to handle specialized areas of investment promotion.” Cabinet wants them “domiciled [being resident] in the Ministry Responsible for Trade & Investment.” This will be good news for Amelia Kyambadde who has always wondered why investments docket isn’t in her ministry. UIA has always been at Finance as well as UFZA. In the tourism Ministry where PS is Doreen Katusiime and Minister is Ephraim Kamuntu, sweeping reforms are coming. Uganda Wildlife Education Center Trust (UWECT), Uganda Tourism Board and Uganda Wildlife Authority (UWA) are to be done away with. The new position is to “consolidate the functions of these institutions into one Agency with specialized departments to accommodate the different specialized areas.”
BIGIRIMANA’S GENDER;
At Pius Bigirimana’s Gender Ministry, things will never be the same again. Where we currently have Lillian Aber’s National Youth Council, Rose Najjemba Muyinda’s National Women Council, National Council for Children, National Council for Disability & National Council for Older Persons, one new body will be created. It will be called National Council for Special Interest Groups “with specialized departments to handle different specialized areas.” In Janet Museveni’s Education Ministry, Prof Asibo Opuda’s NCHE (as we reported earlier), National Curriculum Development Center & the Directorate of Industrial Training are to be done away with. The new President’s position is for the National Council for Education to be established. And we now know why, despite notifying State House 6 months ago, Opuda’s NCHE contract (which expired three weeks ago) hasn’t been attended to leaving him in total dilemma. The NCE will regulate standards and handle curriculum development issues at all levels of education unlike NCHE that only regulated tertiary education. The cabinet memo categorically states: “The NCE should also be in charge of the national qualifications framework at all levels.”
UNEB’s Daniel Nekorach Odongo too hasn’t been spared the government restructuring knife. Having done away with UNEB, the new stand is create one national examination body that will do what UNEB used to do. The new exam body will combine UNEB mandate with that of Uganda Allied Health Examinations Board, Uganda Business Technical Examinations Board (UBTEB) and Uganda Nurses & Midwifery Examinations Board. The new body will have Directorates & Departments tackling specialized areas.
MUTABAZI NOT SAFE;
Eng Godfrey Mutabazi the flamboyant CEO for Uganda Communications Commission (UCC) isn’t safe either. His UCC is being done away with on grounds that there is duplicity between its mandate (regulating voice services) and that of James Saka’s National Technology Authority Uganda (NITA-U) which regulates internet data services. The plan is to create one Authority combining their respective mandates. Dr. Ben Manyindo’s Uganda National Bureau of Standards (UNBS) has been done away with too. The new position is to create one monitoring and standards-enforcing body that will be responsible for industrial, food and drug products across the country. The other agencies to be dissolved into this new regulatory body include Medard Bitekyerezo’s NDA and Agricultural Chemicals Board. The new body will be directly under the health ministry’s supervision. Ambrose Agona’s NARO & Charles Lagul’s NAGRIC have also been done away with. In their place, one consolidated agency is to be established to operate as a research hub for the entire agriculture sector. The health ministry is to be further strengthened by having direct control and supervision over a new body (a research hub) to be established replacing Uganda National Health Research Organization, Virus Research Institute, National Chemotherapeutic Research Institute and Prof Peter Mugyenyi’s Joint Clinical Research Center (JCRC). Others to be done away with include; Uganda Nurses & Midwifes Council, Allied Health Professional Council as well as Medical & Dental Practitioners Council. In their place, one leaner Council will be created with a national mandate and it will comprise of Directorates to handle the specialized areas.
PUBLIC SECTOR MGT;
Under this, the agencies to be affected include NPA, National Population Secretariat, Metropolitan Physical Planning Authority, Town & Country Planning Board, National Physical Planning Board & Makerere-based Economic Policy & Research Center (EPRC). All their functions are to be consolidated under NPA. EPRC is to be transferred to NPA to strengthen the research department. Their research work is to be refocused to realign with the national development agenda.
RAPH OCHAN’S FATE;
The Public Service Commission is to be strengthened through the scrapping of Health and Education Service Commission. The newly strengthened PSC will comprise of specialized Directorates to specifically handle health and education-related recruitment. The rationale for all this reform is that the PSC, which is mandated to discipline errant public servants, has been finding it hard sanctioning people (basically education and health workers) whose recruitment it doesn’t control.
AZUBA’S WORKS SECTOR;
In the works sector, as we previously reported, UNRA, URC and SGR are to be done away with. In their place, one Directorate of Works & Transport is going to be powerfully created in the Works Ministry to handle all infrastructure developments.
ALL THE OTHERS;
Twebaze Bemanya’s URSB, NIRA & NGO Registration Board are also going to be done away with. They will be consolidated into one agency to handle all registration functions. In Irene Muloni’s Energy sector, three government companies namely UEGCL, UETCL & UEDCL are to be phased out. Instead one company will be established and strengthened. Eng Ziria Tebalwa’s Electricity Regulatory Authority (ERA) is to be swallowed by Ernest Rubondo’s Uganda Petroleum Authority. The strengthened UPA will lead on both energy and petroleum sectors. The following entities are ceasing to exist. Their residual functions are reverting to mother ministries. The entities include Non-Performing Assets Recovery Trust (NPART), Non-Performing Assets Recovery Tribunal, Departed Asians’ Property Custodian Board and Edgar Agaba’s National Lotteries Board. They are returning to the finance ministry. Those reverting to Trade Ministry include Uganda Commodities Exchange merging with Uganda Warehouse Receipt System Authority. In Kahinda Otafiire’s Justice & Constitutional Affairs Ministry, Amnesty Commission and Law Reform Commission are to be disbanded. A Department in the Internal Affairs Ministry will perform their functions. National Citizenship & Immigration Control has also been affected. National Records & Archives Center based in Wandegeya is now part of Public Service Ministry. Dr. Sam Mugasi’s NAADS is reverting to MAAIF as well as Uganda Trypanosomiasis Control Council and Diary Development Authority. They will be placed in the relevant MAAIF departments. Uganda Coffee Development Authority and Uganda Cotton Development Organization are also being disbanded and their mandated functions revert to mother MAAIF ministry. In the energy ministry, Geoffrey Turyahikayo is headed for early retirement as his Rural Electrification Agency (REA which is already undergoing comprehensive graft investigations by the IGG) stands disbanded and well as Uganda Atomic Energy Council. Their work has been reverted to mother Energy ministry under the relevant departments. In the Embassy House-based Education Ministry, the Students Financing Board (which has been implementing the students’ loan scheme) is immediately disbanded and the function will be performed by Department of Higher Education.
CURTAINS FALL ON NEMA, NFA;
Finally Museveni has swung the axe and the much-bashed NFA and NEMA have been disbanded as part of this restructuring. The department of forestry and that of environment at the Luzira-based Ministry will respectively handle the mandates. Yet that isn’t all. Uganda National Meteorological Authority, which has always misfired on whether forecasts, has been disbanded on grounds of failing to have any demonstrable impact despite the billions sunk therein. In its place, a new Directorate will be established in the Water & Environmental Ministry. At Works Ministry, National Roads Safety Board, Transport Licensing Board and Eng Micheal Odongo’s Uganda Road Fund (URF) have been disbanded and the respective functions reverted to mother ministry. The National Council of Science & Technology (which gave birth to Elioda Tumwesigye’s Ministry of Science, Innovations & Technology) has been disbanded.
RETAINED AGENCIES;
The 58 entities that have been retained include Bank of Uganda, URA, Uganda Development Bank, FIA but to become a desk in President’s Office, NSSF, PPDA, UDC which must be consolidated and its mandate expanded; UIRI, the 9 Public Universities (but lay off support staff & end course duplication), LDC, MTAC, Uganda Wildlife Training Institute, Hotel & Tourism Training Institute, Civil Service College Jinja (survived forced merger with UMI), Judicial Studies Institute & Uganda Management Institute (UMI). Other retained entities are National Council for Sports and Uganda National Commission for UNESCO (UNATCOM). Others are Ofwono Opondo’s Uganda Media Center, UBC, Robert Kabushenga’s New Vision Printing & Publishing Corporation, Irene Muwanguzi’s UPPC Entebbe, UICT Nakawa, UTL (100% govt shareholding), UCI, Uganda Heart Institute, Moses Kamabare’s NMS, Uganda Blood Transfusion Services, Uganda Aids Commission, Uganda National Cultural Center, Industrial Court, Equal Opportunities Commission, JSC, UHRC, Center for Alternative Dispute Resolution, CAA, EA Aviation Academy, NEC, National Oil Company, EC, Jennifer Musisi’s KCCA, Parliamentary Commission, LG Finance Commission, Baguma Isoke’s Uganda Land Commission & NWSC. Government will also retain a shareholding in Housing Finance Bank Ltd, DFCU Bank, UTL (100%) & NHCL. There is an elaborate explanation for all these retentions in favor of the 58 entities. For comments, call, text or whatsapp us on 0703164755.
