Masaka district boss ordered to refund sh25m paid to ghost

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The Inspectorate of Government (IG) has directed Masaka district local government principal human resource officer Kityo Mugagga to refund shillings 25.3 million, which was paid to a ghost pensioner.

According to IG, the money was irregularly paid into the late Joseph Henry Kyeyune’s bank account and withdrawn by family members.

Mugagga is soon expected to appear before the Masaka District Service Commission for appropriate disciplinary action over allegations of abuse of office, gross negligence and failure to perform his duties.

Deputy Inspector General of Government Anne Twinomugisha Muhairwe issued the directive on Friday, August 22, 2025, after investigations by the IG Masaka regional office found Mugagga guilty of the offences.

The IG received allegations that Mugagga had created and maintained a ghost pensioner, Kyeyune, on the District’s pension payroll.

Following the complaint, investigations were conducted in which it was established that Kyeyune was born on July 15, 1927 and appointed to the East African Posts and Telegraph as a Lineman Grade III on January 7, 1950.

Investigations further revealed that Kyeyune voluntarily retired in April 1984 as a Senior Technician after 34 years of service, at the age of 57.

However, in the FY 2015/2016, the Ministry of Public Service decentralised pension payments to local governments, and Kyeyune was transferred to the Masaka DLG pension payroll.

According to investigations, Mugagga, with full knowledge of the pensioner’s age and status, failed to enforce compliance with the requirement for submission of annual life certificates by pensioners after Kyeyune’s death.

It is alleged that on December 16, 2019, three years after the death of Kyeyune, Mugagga irregularly requested the Ministry of Public Service to change the deceased’s date of birth to get more retirement benefits.

Investigations reveal that pension payments into Kyeyune’s bank account continued for over five years.

The late Kyeyune was deleted from the payroll in February 2022, after irregular pension payments worth shillings 32.5 million were paid into his bank account held in Centenary Bank, Mapeera Branch.

At the time of the IG’s inspection on March 18, 2022, the balance in the late Kyeyune’s Centenary Bank account was shillings 7.1 million, after family members withdrew shillings 25.3 million. The IG has since recovered the bank balance from the bank.

The IG states that the payment of shillings 25.3 million pension to the late Kyeyune contravened Section 18 (1) of the Pensions Act, Cap 89, which states that: “Every pension or other allowance granted under this Act, shall, unless it has sooner ceased, cease upon the death of the person to whom it is granted”.

The IG has warned public officers against all forms of unethical conduct while executing their duties, which can cause losses to the government.

“Officers who will be found guilty of disregarding the law will face the consequences,” Muhairwe warned.