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Bududa District Official Arrested for Embezzlement

According to John Baptist Nambeshe, the Bududa District LC V chairman, Kusolo created a list of ghost workers whose salaries he has drawn of the last five years. He allegedly used names of people recruited by the district service Commission in 2009 to work in Bududa District Hospital but failed to take up the jobs.

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Morgan Kusolo, the Bududa district Principal Personnel Officer is arrested for allegedly embezzling Ugx 127 million from the district. Kusolo was arrested from his office at Bududa District headquarters by personnel from the Criminal Intelligence and Investigation Directorate – CIID.

According to John Baptist Nambeshe, the Bududa District LC V chairman, Kusolo created a list of ghost workers whose salaries he has drawn of the last five years.  He allegedly used names of people recruited by the district service Commission in 2009 to work in Bududa District Hospital but failed to take up the jobs.

Kusolo is reported to have opened up different bank accounts in Mbale banks bearing names of the ghost employees, although all accounts bear his photograph. He said he has since been withdrawing all the salaries that the district was sending to these accounts since 2009.

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Nambeshe added that the misdeed was unearthed after the implementation of the Integrated Finance Management System, a new payment system implemented by the Ministry of Finance.

Nambeshe further explains that the CCID team that arrested Kusolo was armed with evidence of records from the banks including video pictures from CCTV cameras.

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Fred Enanga, The police spokesperson has confirmed Kusolo’s arrest but declined to divulge details arguing it will interfere with the police’s investigation.

Nambeshe however condemned the act saying Bududa district has been grappling with the gap in the staff ceiling yet Kusolo and some of his accomplices are busy inflating the number of staff. He says the district is investigating further to find out if Kusolo was conniving with some other senior officers in the finance Department.

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Jim Mugunga, the Finance Ministry Spokesperson says in 2013, following an Ernst and Young audit which found that the government was paying out billions of shilling monthly to ghost employees, the ministry decided to change its salary payment system.

 

The ministry then changed the salary payment system from the Integrated Personal and Payroll System - IPPS to Integrated Finance Management System –IFMS which now identifies every civil servant as a supplier to government.

The upgrade to the new systems led to the elimination of many public servants from the payroll, causing untold suffering to several government employees for several months.

In June, 2014 an audit by the Office of the Auditor General found 8,000 ‘ghost employees’ on the government payroll, slightly less than the 9,000 found a year earlier.

The new system which requires employees to be identified using unique “supplier numbers”, had eliminated a significant number of ‘ghosts’, it has not been welcomed by accounting officers and their accomplices who were taking advantage of the old system.

Mugunga says the current system has blocked most of the avenues for the creation of ghosts and that it is also bringing into the limelight the earlier practices of accounting officers.

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