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Urban Vulnerable Denied Relief as Shs1 Billion COVID Funds Disappear: AG Report
A thorough investigation by the Auditor General (AG) has disclosed that over a billion shillings designated for COVID-19 relief, aimed at supporting the urban vulnerable during the pandemic-induced lockdown in 2021, ended up in the hands of ineligible recipients. This diversion of funds deprived rightful beneficiaries of essential assistance during a time of crisis.
During the peak of the pandemic in 2021, the government allocated Shs54 billion to assist the urban poor residing in cities and municipalities nationwide, many of whom had lost their livelihoods due to the containment measures implemented to mitigate the virus’s spread.
However, the AG’s report reveals that a significant portion of these funds, totaling Shs1.5 billion, was distributed to civil servants and private sector employees who did not fall within the vulnerable categories defined by the Cabinet. Additionally, an unspecified sum was irregularly disbursed due to a technical malfunction.
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The report specifies that Shs784.8 million of the COVID-19 relief funds intended for vulnerable individuals were erroneously paid to 7,662 civil servants who were already receiving salaries from the Consolidated Fund, rendering them ineligible for assistance. Furthermore, Shs192.97 million was disbursed to 1,884 private sector employees in a similar irregular manner.
Post Bank, entrusted with the task of transferring funds to beneficiaries’ mobile money accounts, mistakenly disbursed Shs615.68 million to 6,011 individuals. However, attempts to obtain clarification from the bank regarding this erroneous payment were unsuccessful at the time of press.
Despite these findings, the report lacks detailed information regarding the identities of ineligible recipients, the manner in which they received funds, and the possibility of tracing them.
The Ministry of Gender, Labour, and Social Development, in conjunction with the Office of the Prime Minister, delegated the registration of eligible beneficiaries to town clerks. These beneficiaries were supposed to fall into identified vulnerable categories, such as bus and taxi drivers, boda boda riders, slum dwellers, orphans, and vulnerable children, among others. Each household was entitled to receive Shs100,000. The misappropriation of Shs1.5 billion implies that approximately 15,000 households were excluded from receiving aid.
Aggrey Kibenge, the Permanent Secretary at the Gender Ministry, attributed the discrepancies to the town clerks, stating that they were responsible for identifying beneficiaries based on the guidelines provided. He emphasized the challenges faced in verifying vulnerability before payment, citing the urgency imposed by the pandemic and the subsequent need for swift implementation.
Kibenge explained that an online system was utilized for data verification, relying on information submitted by the town clerks. However, due to the emergency nature of the situation, stringent verification procedures were not feasible. Instead, the ministry relied on expedited processes to ensure timely assistance to those in need.
Defence
“Once the data came from the urban authorities, it was relayed to the ministry authorities where we had a centre that was managing all this data. We would then remit that data to the telephone companies to verify the names under which the telephone numbers were registered. Once they confirmed that the names, NINs, and telephone numbers were rhyming we would give instructions to Post Bank to pay that person. Where the system rejected on account of a mismatch, those are the ones that were rejected. We were only paying those cleared by that system, and those had to be submitted by the town clerks.” – Mr Aggrey Kibenge, PS at the Gender Ministry
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