KAMPALA – The Permanent Secretary and Secretary to the Treasury (PSST) at the Ministry of Finance, Planning and Economic Development, Dr Ramathan Ggoobi, has challenged heads of internal audit in local governments to turn audit reports into instruments of reform rather than “archives of failure.”
Addressing heads of internal audit from district local governments, cities and municipal councils at the Finance ministry headquarters, Dr Ggoobi warned that weaknesses at the local level directly undermine national development targets.
“More than a third of public spending happens at local governments. If internal audit fails at this level, government fails where citizens live,” he said.
He added that Uganda cannot achieve fiscal discipline, build investor confidence or realise its ten-fold economic growth agenda if internal audit systems remain weak.
Dr Ggoobi cited pension overpayments exceeding Shs31 billion made to thousands of beneficiaries as evidence that public funds are not adequately safeguarded. He also pointed to persistent payroll irregularities, ghost worker risks and diversion of funds from approved activities.
“We are seeing repeat audit findings year after year. That means we are documenting problems, not solving them,” he said.
The PSST further highlighted procurement failures, including significant price variations for similar government goods and works, which he said point to systemic weaknesses in oversight and value-for-money controls.
According to Dr Ggoobi, four structural weaknesses continue to undermine the effectiveness of internal audit. These include overreliance on compliance auditing instead of risk-based auditing, weak follow-up on audit recommendations, a skills mismatch as government systems become increasingly digital, and limited independence of internal auditors.
He urged auditors to shift from routine paperwork checks to risk-focused audits that interrogate how public resources are exposed to loss.
“Audit risk, not paperwork. Follow the money until action happens. Use data — IFMS analytics, payroll trend analysis, procurement price comparisons — and prevent losses before they occur,” he said.
Dr Ggoobi committed that government will strengthen the Office of the Internal Auditor General, enhance training and build IT audit capacity to match the demands of digital public finance systems. He also pledged to improve the professional standing and institutional independence of heads of internal audit.
He stressed that strong public finance governance is central to Uganda’s ambition of achieving ten-fold economic growth.
“Every wasted shilling increases taxes, debt or service gaps. Uganda’s ten-fold growth goal requires strong public finance governance,” he said.
The meeting comes amid increased scrutiny of public expenditure management as government seeks to enhance efficiency, plug leakages and maximise value from limited fiscal space.
With local governments accounting for a significant share of service delivery in health, education and infrastructure, Dr Ggoobi said strengthening internal audit at that level is no longer optional but critical to restoring public trust and ensuring development outcomes.