Let merger of agencies deliver positive results
President Museveni gestures as he addresses the ruling NRM party caucus at State House Entebbe on February 2, 2024. He was guiding them on the need to merge government agencies. PHOTO/HANDOUT
What you need to know:
- Additionally, there are concerns that the abrupt dissolution of certain agencies could disrupt services, at least in the short term.
The Ugandan government has allocated Shs73.6b to compensate employees affected by its merger of 60 public agencies. The rationalisation programme aims to cut down operational costs and boost efficiency by reintegrating or dissolving these agencies, with a particular focus on reducing wage bills and rent expenses.
The initial disbursement of Shs29.1b has already been made to employees from 21 affected agencies, with pensions, gratuities, and severance packages included in the compensation. This financial effort is designed to cushion the blow for approximately 2,500 displaced workers, many of whom have expressed uncertainty about their future employment prospects.
Government officials justify this significant investment by projecting that the merger will save the country up to Shs1 trillion annually, a figure seen as necessary for Uganda’s long-term economic stability. With the funds redirected from salaries and office rents, the savings are expected to be reallocated to key sectors such as healthcare, education, and infrastructure, where the need for improvement is pressing. By trimming the public sector workforce and streamlining operations, officials believe the country can achieve better service delivery and curb corruption, especially in agencies that had become bloated and inefficient over time.
However, the merger and rationalisation process has sparked mixed reactions. Some employees and stakeholders have welcomed the decision, viewing it as a necessary step in reducing public expenditure and improving governance. They argue that the programme is long overdue, pointing to agencies that had overlapping mandates, leading to duplication of services and wastage of public funds.
On the other hand, critics of the merger highlight the human cost of the decision. Many workers are concerned about their future in a tough job market. Uncertainty remains for those who have not yet received their severance packages, and questions have been raised about whether the government’s allocated funds will adequately address their needs.
Additionally, there are concerns that the abrupt dissolution of certain agencies could disrupt services, at least in the short term.
While the government assures that the restructuring will lead to long-term gains, it will be crucial for policymakers to follow through on their promises. Ensuring fair compensation for all affected employees, minimising service disruption, and safeguarding the welfare of citizens are essential to the success of this merger. The government’s ability to balance these objectives will ultimately determine whether the savings and efficiencies it envisions are realised without undue harm to those involved.
