TRUTH REVEALED!! UIA Staff  Were Legally Paid: Unveiling the Real Story Behind the Honoraria Payments

In recent months, speculation has surrounded the Uganda Investment Authority (UIA) and the payment of honoraria to staff members involved in the Kampala Industrial and Business Park (KIBP) project at Namanve.

The facts, however, reveal a well-documented and legally sound process that ensured fair compensation for extra duties performed by UIA staff.
Here’s a comprehensive breakdown of the events and decisions that led to these payments.

Background of the KIBP Project
On August 19, 2019, UIA entered into a six-year contract with a consortium comprising Roughton International Ltd, Turner & Townsend International Ltd, Joadah Consult Ltd, and Basic Group Ltd.
This consortium was appointed as the Employer’s Representatives (ER) to oversee the development of infrastructure at KIBP.

The contract became effective on May 19, 2020, with the ER expected to supervise daily project activities of the EPC Contractor, Lagan Dott Namanve Ltd.
The Termination and Resulting Gap
However, on August 29, 2022, UIA issued a termination notice to the ER, creating a supervisory gap.

In response, the UIA Board of Directors, during their meeting on August 17, 2022, approved the Project Management Team (PMT) to temporarily supervise the project until a new Owner’s Engineer (OE) could be appointed.

Subsequent meetings on September 26, 2022, and November 15, 2022, further authorized the recruitment and remuneration of additional temporary staff to assist the PMT.

Legal and Procedural Basis for Honoraria

The decisions made by UIA were in strict adherence to both the EPC contract terms and the UIA Human Resource Manual.
The General Conditions of the Contract (GCC) under the EPC agreement allow the Employer to appoint or replace the Employer’s Representative and delegate duties to assistants. This provided UIA the flexibility to assign its staff to continue supervising the project in the absence of the ER.
In their November 15, 2022 meeting, the Board resolved that PMT members, now performing the roles of the OE, should be compensated for their extra duties.
A proposal for honoraria was put forth, which adhered to Section 3.28 of the UIA HR Manual.

This section specifies that honoraria are payable for work outside the normal scope of duties, particularly when it involves significant additional responsibilities or the use of special skills.
Detailed Approval ProcessFollowing the Board’s resolution, the PMT formulated a detailed proposal that was approved by the Director General and subsequently by the Board via email on December 8, 2023.
The proposal, after further refinement based on Board guidance, was finally approved on March 15, 2023. This meticulous process ensured that all legal and procedural requirements were met, guaranteeing transparency and accountability.

Remuneration Computation and Justification

The honoraria were computed based on the formula: (Number of days worked/30) * 60% of monthly basic salary, in line with the UIA HR Manual. The necessity for these payments arose because the PMT took on additional roles and responsibilities, significantly beyond their regular duties.

Financial Prudence and Savings
It’s worth noting that the decision to utilize UIA staff for supervisory roles resulted in substantial savings for the government.

The terminated ER was earning €313,298.58 annually, equating to €104,432.86 per month. From September 2022 to February 2023, the ER would have cost €626,597.16, whereas the honoraria paid to UIA staff for the same period totaled €124,822.63.
This prudent approach saved the government €501,774.53 during this period alone, with total savings amounting to €1,497,864 over the entire duration the ER’s procurement process was ongoing.

Conclusion:
A Legally Justified DecisionThe comprehensive governance and management structure approved for the KIBP project explicitly provided for the remuneration of UIA staff involved in project activities.
This structure, combined with the provisions of the UIA HR Manual and the Public Service Standing Orders, underpinned the legality of the honoraria payments.The narrative that UIA staff were unfairly compensated or that there was any impropriety in the process is unfounded. The truth is that UIA staff were legally paid for undertaking significant additional responsibilities, ensuring the successful continuation of the KIBP project while delivering substantial savings to the government 5.9bn shillings.

“The government saved € 1,497,864 over the period the ER’s procurement was ongoing. The process of procuring the OE continued in accordance to the board’s decision which was concluded and the OE is in place. The decision of the Board actually saved the institution € 1,497,864 which is approximately UGX 5.9 billion”