Parliament Investigates South African Firm Over Payroll

3438 Views Kampala, Uganda

In short
Parliament is also investigating circumstances under, which government entered into an arrangement with a private firm to deal with salaries of public servants on the grounds that parliament halted this practice years ago.

The public service and local governments committee of parliament is investigating Payment Solutions Uganda, a South African firm accused of legally deducting salaries of public servants and teachers. Payment Solutions Uganda allegedly works with some private financial institutions, which extend loans to public servants. Parliament is also investigating circumstances under, which government entered into an arrangement with a private firm to deal with salaries of public servants on the grounds that parliament halted this practice years ago.
 
Raphael Magyezi, the Igara West MP says that during their recent visit to Mukono they discovered that Payment Solutions Uganda deducts shillings 5000 each month or from teachers allegedly to recover loans advanced to them. While appearing before the public service and local governments committee of parliament Bosco Rutagarama, the regional director Payment Solutions Uganda failed to provide any operational or legal documents detailing their workings.
 
He told the committee chaired by Grace Kwiyucwiny, the Zombo district woman MP that his company entered into an agreement with the public service ministry in 2009 on recommendation from the finance ministry. Rutagarama says they use a software ‘Payment solutions’ from South Africa to deduct money from the affected public servants, claims legislators found suspicious.
 
Odonga Otto, the Aruu county MP expressed dissatisfaction saying the company belongs to international fraudsters who are using technology to rob public servants of their hard earned money. It came after Rutagaram claimed that he owns 10 percent shares in the firm with the 90 percent belonging to the South African nations, who provided the software. However, this didn’t go down well with the committee members such as Ignatius Besisira, Roland Mugumye and Santa Olum.

They threw out Rutagarama and his team and asked them to reappear with all the necessary documents. Grace Kwiyucwiny, the committee chairperson says they picked interest in the company to explain how it dealers with the payroll because of numerous complaints from civil servants.

 

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