URA report mix-up may irk IMF

Feb 22, 2004

The controversy over the Uganda Revenue Authority (URA) Commission of Inquiry report could not have come at a worse time.

By Vision Reporter

The controversy over the Uganda Revenue Authority (URA) Commission of Inquiry report could not have come at a worse time.

Within the next few weeks, a team from the International Monetary Fund (IMF) will be in Kampala to look through the country’s books of accounts.

This is normal in the run-up to preparing for the national budget in June and allows the IMF to monitor Uganda’s economy.

Uganda gets IMF support through the Poverty Reduction and Growth Facility Trust worth a total $13m over three years ending September 2005.

The IMF has consistently said an inefficient and corrupt URA is limiting the Government’s efforts to reduce the budget deficit by raising more tax revenues.

In a June 2003 letter to the IMF, finance minister, Gerald Ssendaula (top) said, an improved tax administration is critical to both increasing government revenue and improving the business environment.

He promised that the “URA management will follow up on the conclusion of the investigation into corruption in the URA by the judicial commission of inquiry, with the pursuit of an aggressive campaign to restore the integrity of the institution. Staff found to have committed wrong-doing will be disciplined or dismissed,” he wrote in part.

Now with two of the Commissioners, James Kahoza and Fawn Cousens disputing the final position taken by the chairman, Lady Justice Ssebutinde, the report’s conclusions and recommendations may raise questions with the IMF.

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