Uganda's Rationalization Process Faces Criticism Over Undisclosed Interests and Poor Execution

Eddie Kwizera, a prominent Ugandan critic, has voiced concerns over the country's ongoing rationalization process, citing undisclosed interests and poor execution as major issues. The rationalization efforts, aimed at streamlining government entities and functions, have faced setbacks and delays in recent months.

One notable example is the proposed mainstreaming of the Uganda National Road Fund (UNRA) back into the Ministry of Works and Transport. The sector minister, Gen. Katumba Wamala, introduced the Uganda National Roads Authority (Repeal) Bill, 2024, arguing that merging UNRA with the ministry would lead to cost savings. However, the Parliamentary Committee on Physical Infrastructure, led by Hon. Dan Kimosho, defended UNRA's autonomy, emphasizing the agency's critical role in developing and maintaining national road infrastructure.

The committee also raised concerns about potential setbacks in project implementation and completion due to the rationalization process. Members of Parliament supported the committee's position, asserting that UNRA has been performing well and should remain autonomous. In response, the Speaker directed the minister to bring amendments to the 2006 UNRA Act to grant the minister more oversight powers in the sector.

Why this matters: The rationalization process in Uganda has far-reaching implications for the country's governance and public service delivery. The lack of transparency and accountability in the process raises questions about the true motives behind the proposed changes and their potential impact on the effectiveness of government institutions.

The rationalization of other entities, such as the Non-Performing Assets Recovery Trust (NPART) and Departed Asians Property Custodian Board (DAPCB), has also faced criticism and delays. Parliament has directed that the process can only proceed after a comprehensive audit of the entities' assets, citing concerns over transparency and accountability. The proposed dissolution of NPART and integration of its functions into the Ministry of Finance have been rejected until a comprehensive inventory of the Trust's assets is provided to Parliament.

Similarly, the government has withdrawn the Tier 4 Microfinance Institutions and Money Lenders (Amendment) Bill, 2024, which aimed to rationalize the Uganda Microfinance Regulatory Authority (UMRA), due to structural challenges within the Ministry of Finance. The Speaker of Parliament has tasked the Minister to present regulations standardizing money lenders' charges, emphasizing the need for regulation rather than rationalization.

Critics like Eddie Kwizera argue that the rationalization process lacks transparency and may be driven by undisclosed interests rather than a genuine desire for efficiency and cost savings. The poor execution of the process, as evidenced by the setbacks and impediments, has further fueled skepticism about the government's approach.

As the debate over Uganda's rationalization process continues, it remains crucial for the government to address the concerns raised by critics and ensure that any changes to government entities and functions are carried out in a transparent, accountable, and effective manner. The interests of the public and the efficient delivery of services should be the primary focus of any rationalization efforts.

Key Takeaways

• Ugandan critic raises concerns over ongoing rationalization process, citing lack of transparency.
• Proposed merger of Uganda National Road Fund with Ministry of Works faces opposition from Parliament.
• Rationalization of other entities like NPART and DAPCB delayed due to transparency issues.
• Proposed UMRA rationalization withdrawn due to structural challenges within Ministry of Finance.
• Critics argue rationalization lacks transparency and may be driven by undisclosed interests.