Corruption in Uganda: A Costly Challenge – Report by Clinton Mirrors Ampaire

Recent Revelations

A new study conducted by the Government Transparency Institute (GTI) has exposed the staggering financial toll that corruption takes on Uganda. The study meticulously examined both direct and indirect costs associated with corruption within the country¹.

• Direct Costs:
  • These are the tangible expenses incurred due to corrupt practices. They include:
    • Bribes: Citizens paying bribes to officials.
    • Illegitimate Contract Awards: Dubious contracts leading to financial losses.
    • Bribes to Judicial Officers: Undermining the justice system.
    • Corruption in Procurement Processes: Skewed allocation of resources.
    • Healthcare Corruption: Impacting public health services.
    • Utility Fee Bribes: Unpaid utility fees due to corruption.
    • Bribing Security Personnel: Affecting safety and trust.
• Indirect Costs:
  • These are more challenging to quantify but equally damaging:
    • Foreign Direct Investment Losses: Corruption discourages investment.
    • Labor Force Constraints: High corruption hampers labor force participation.
    • High-Interest Rates for SMEs: Small businesses struggle due to corruption.
    • Firms Misreporting Taxes: Underreporting VAT and other taxes.

The shocking revelation: Uganda loses at least Shs9.144 trillion annually due to corruption in both private and public institutions. This staggering amount accounts for 23% of the country’s annual budget¹.

2. Broader Context

• Uganda’s Ranking:
  • Uganda’s poor ranking (139th out of 167 countries) in the Corruption Perceptions Index underscores the severity of the issue².
  • Government officials in the executive branch often misuse their positions for personal gain, accepting bribes and informal payments while delivering public services and enforcing regulations³.
• Long-Term Impact:
  • Corruption perpetuates poverty, undermines public services, and stifles economic development.
  • The loss of funds due to corruption could otherwise be channeled into critical sectors like education, healthcare, and infrastructure.
• Public Perception:
  • Despite efforts to combat corruption, more than two-thirds of Ugandans believe that corruption has increased in the past year.
  • The belief that ordinary citizens can make a difference in the fight against corruption remains low².

3. Urgent Call for Action

The figures revealed in this study demand urgent attention. Speaker of Parliament Anita Among expressed deep concern about the alarming numbers. She rightly pointed out that while the government claims budget constraints, a significant amount is siphoned off due to corruption¹.

Addressing corruption requires collective efforts, strengthened institutions, and unwavering commitment. Uganda’s journey toward transparency and accountability must continue, ensuring that public resources benefit the people, not the corrupt few.