LOCAL GOVERNANCE IN THE 21ST
CENTURY: FRAUD, CORRUPTION AND
ETHICS
(THE UGANDA EXPERIENCE)
PAPER PRESENTED
AT TRAINING WORKSHOP
HELD AT DOCKLANDS HOTEL
DURBAN – SOUTH AFRICA
BY
NAMANYA KARAKIRE ELIAB
MBA, PGDFM
CHIEF FINANCE OFFICER
MPIGI DISTRICT - UGANDA
12TH – 14TH JUNE, 2012
1.0 Introduction
The Government of Uganda operates under
a legal framework in terms of Local
Governance. The Constitution of the
Republic of Uganda, 1995, Article 197
provides for Local Governments, their
functions and operations.
The Local Governments Act Cap 243
establishes the system of Local
Governments and administrative units in
Uganda.
Local Governments are body corporate
and may therefore sue or be sued in their
corporate name. The same Act also
describes the Local Government set up
with the Council as a highest political
authority with legislative and executive
powers exercised in accordance with the
Constitution and the Act.
For purposes of good and democratic local
governance, the same Act outlines how
Local Government Councils elections are
to be held for good and participative
representation in the above councils
• This Act of parliament in Uganda provides
for inspection and monitoring of Local
Governments by line ministries and other
state organs authorized by law to promote
adherence to the law which includes
among other.
• Adherence to the rule of law and principles
of natural justice and good governance.
• Foster elimination of corruption and abuse
of office.
2.0 Governance:
Definition:
• The combination of processes and
structures implemented by the Local
Government council and or management
in order to inform, direct, manage and
monitor the activities of the organization
towards the achievement of its objectives.
• Governance can also be defined as the
exercise of political, administrative,
managerial authority and order which is
legitimate, accountable, transparent,
democratic, efficient and equitable in
allocating and using resources to promote
human welfare and positive change of
society.
• Good governance therefore depends on
how effective are Local Governments in
management and monitoring of the
activities enshrined in the Local
Governments’ budgets and work plans.
The question of involvement is key in this
area of governance for example;
o Are Stakeholders involved in the
planning process.
o Do Stakeholders contribute to priority list
of projects and activities to be
implemented within the jurisdiction of
the councils.
o Do the leaders and management
monitor implementation of government
projects and programmes.
o Is there a smooth handover of
completed projects and programs to the
community for ownership.
o Is there a program for sustainability and
continuity of competed projects. This
3.0 Fraud
Definition:
• Any illegal acts characterized by deceit,
concealment or violation of trust. Frauds
are perpetrated by parties and
organizations to obtain money, property,
or service to avoid payment or loss of
services or to secure personal or business
advantage.
4.0 Corruption
Definition:
• An act of using your position or
leadership/political power to your own
advantage .
• This may be in form of using public
resources and or money for your personal
benefits and abuse of public office. “There
is a saying that power corrupts”.
• Corruption is the quality of character of
Local Government leaders. Here we also
look at integrity of leaders by asking the
following questions;
5.0 Ethics:
To define ethics, the following question is
raised ;
• How is the conduct, behavior, manners
and human morals of a leader.
6.0 Integrity:
Another area of concern is the quality of
character of Local Government leaders.
Here we also look at integrity of leaders
• How is the quality of character of;
Individual
Group
Society
Institution
Government / Country
Leaders or the led
Public officer or private persons
• In this section, I now therefore address myself to
key players and the experience in Uganda.
The Government of Uganda has in place a
number of oversight functions performed
by established and legalized Government
institutions and these are the following;
 The office of the Auditor General
 The Inspectorate of Government
 The Director Public Prosecutions
 The Directorate of criminal
investigations
 The Resident District Commissioner
at the District
 The Local Governments Public
Accounts Committee of Parliament.
 The District Public Accounts
Committee.
 The Internal Audit Department that
directly reports to Council through the
District Chairperson and the District
Public Accounts Committee .
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The media
The civil society organizations
Development partners and or Donors
The Central Government through line ministries
that review progress performance reports etc.
The public servants
The general public
The Council
The District Chairperson and Executive
Standing committees of council.
7.0 Way forward and conclusion
To ensure good governance, reduce or do
away with fraud and corruption and to
regenerate the ethics, morals and integrity
of public leaders, there is need to
strengthen support, respect and facilitate
the oversight organs of government.
There is also need to strengthen internal
controls in management of public
resources e.g public funds and assets.
Compliance with policies, plans,
procedures, laws and regulations is critical
as well as economic use of resources
(manage public resources to save and
achieve value for money).
Efficient use of resources (achieving the
desired outputs using available and
cheapest means) is also equally pertinent.
I THANK YOU FOR LISTENING
TO ME .
This paper was intended to provoke
discussions on areas highlighted above
and seek for contributions and additions
on the subject of “Local governance; fraud,
corruption and ethics”.