Gulu Hospital's Manual Payroll System Sparks Concern Among MPs

The Public Accounts Committee (PAC) Central Government has voiced strong concerns regarding Gulu Regional Referral Hospital’s persistent reliance on a manual payroll system, despite the government’s established digital payroll infrastructure.

This manual approach has led to significant apprehension among legislators, who fear it creates opportunities for the misappropriation of public funds, particularly those allocated for pensioners and retirees. The committee’s dismay stems from findings in the Auditor General’s Report for the Financial Year 2024/2025.

The report highlighted that Gulu Hospital disbursed Shs133 million over a three-month period to 22 staff members who were no longer eligible for payment. These individuals had either retired, transferred, absconded from duty, or passed away.

Hon. Benjamin Cadet, a member of the committee, questioned the hospital’s decision to bypass the government’s Integrated Personnel and Payroll System (IPPS). He noted that the IPPS is designed to automatically manage civil servant lifecycles, including retirement notifications and pension generation, thereby preventing such discrepancies.

“People at Gulu hospital are deliberately refusing to use this computerised system, and opting for letters, thereby creating short cuts in pension or it is deliberate scam to keep swindling the money,” Cadet stated during a committee meeting.

The committee emphasized that this practice violates Section 12 of the Public Standing Orders, 2021, which mandates the cessation of salary payments once an officer ceases to serve the government.

Dr. Peter Mukobi, the hospital director, explained that the online system is not yet fully automated for retirement processes, requiring human intervention. He cited delays in processing retirement letters and handover procedures as reasons why some staff continued to be on the payroll beyond their retirement dates.

Source: https://www.parliament.go.ug/news/4619/gulu-hospital-manual-payroll-dampens-mps-spirits