Gulu Hospital's Manual Payroll Under Fire from MPs

Members of Parliament on the Public Accounts Committee (PAC) Central Government are dismayed by Gulu Regional Referral Hospital’s persistent use of a manual payroll system, despite the government’s established digital payroll. This archaic method, according to the MPs, creates fertile ground for the misappropriation of public funds intended for pensioners and retirees.

The committee’s concerns were amplified by findings in the Auditor General’s Report for the Financial Year 2024/2025. The report detailed that Gulu Hospital paid out Shs133 million over three months to 22 individuals who were no longer eligible for salary due to retirement, transfer, abscondment, or death.

Hon. Benjamin Cadet, representing Bunyaruguru County, questioned the hospital’s rationale for eschewing the government’s Integrated Personnel and Payroll System (IPPS). He argued that the digital system is designed to automatically track employee service duration and flag impending retirements, thereby ensuring timely transitions to pension schemes. “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.

The practice is seen as a violation of Section 12 of the Public Standing Orders, 2021, which mandates the cessation of salary payments once an officer ceases to render government service. The committee, chaired by Hon. Karim Masaba, voiced worries that such oversights lead to payments for unrendered services, inflating expenditure figures.

Dr. Peter Mukobi, the hospital director, defended the hospital’s position by stating that the online system is not yet fully adequate for automating retirement processes, requiring human intervention. He also cited delays in official retirement letters and handover procedures as reasons for some staff continuing to receive pay beyond their service dates.

This situation was reported by the Parliament of Uganda.