The Public Accounts Committee (PAC) Central Government is disappointed that Gulu Regional Referral Hospital continues to use a manual payroll system despite government is running a digital one.
The MPs now fear that the manual system could facilitate the misuse of public funds meant for pensioners and retirees.
The committee was responding to findings in the Auditor General’s Report for the Financial Year 2024/2025, which revealed that Gulu Hospital paid Shs133 million over three months to 22 staff members who had either retired, transferred, absconded from duty or died.
“Government through the Ministry of Public Service came up with an Integrated Personnel and Payroll System which is computerised and you are able to know when the civil servant started working and alerts you when he is about to retire, so that by the time you clock 60, it automatically generates pension or gratuity,” said Hon. Benjamin Cadet (NRM, Bunyaruguru County).
Cadet questioned why Gulu Hospital continued using the manual system, arguing that it created room for delays in removing ineligible staff from the payroll.
“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,” said Cadet during the committee meeting on Tuesday, 15 September 2026.
Legislators noted that the practice contravenes Section 12 of the Public Standing Orders, 2021, which provides that payment of a public officer’s salary ceases when the officer stops rendering services to government under whatever circumstances, including death.
The committee, chaired by Mbale Industrial Division MP, Hon. Karim Masaba, expressed concern that delays in removing ineligible staff from the payroll had resulted in payments for services that were not rendered, leading to an overstatement of expenditure.
Wakiso District Woman Representative, Hon. Ethel Naluyima, asked hospital officials ON how they intended to recover the money. She also questioned the hospital’s reliance on the manual system, noting that the Ministry of Public Service had repeatedly briefed MPs on the effectiveness of the digital payroll system.
“According to the Ministry of Public Service this capital management system automatically detects some one of retirement age and transfers them such that they are now under the pension system,” said Naluyima, who asked Gulu officials to document their justification for bypassing the system so the committee could cross-check the facts with the Ministry of Public Service.
The hospital director, Dr Peter Mukobi, said that the online system was still inadequate and could not fully automate retirement-related processes.
“The system is supposed to be automated to alert me on my retirement. However, to date, that automation is not yet in full effect and there is still a human hand that must be involved. it does not shift someone from the payroll upon retirement,” Mukobi said.
He added that some of the affected staff continued working beyond their retirement dates because of delays in receiving retirement letters and completing handover processes.
Distributed by APO Group on behalf of Parliament of the Republic of Uganda.
