The Complete Inspectorate of Government's Presentation To The East African Revenue Authorities 4th Integrity Forum.

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PRESENTATION TO THE EAST AFRICA INTEGRITY FORUM

At Speke Resort Munyonyo

23rd November 2016

By
George Bamugemereire
DEPUTY INSPECTOR GENERAL OF GOVERNMENT

National Anti Corruption


Strategy
The Government of Uganda adopted the National Anti

Corruption Strategy (NACS) 2014 -2019 which is


anchored on five strategic objectives namely;
1. Strengthen the leadership and coordination of anticorruption efforts at all levels;
2. Empower citizens to participate in anti-corruption
measures;
3. Strengthen the anti-corruption institutions for
effective enforcement of the legal and regulatory
anti-corruption measures;
4. Improve compliance with accountability standards of
public and private institutions.

Legal Framework against Corruption


The Constitution of The Republic of Uganda, 1995
The Constitution is the supreme law of the land and has binding force on all
the authorities and persons throughout Uganda. As the primary legal
instrument, the Constitution contains provisions on measures, concepts and
institutions that are geared to preventing, monitoring and combating
corruption.
The Constitution of the Republic of Uganda, National objective XXVI on
Accountability states that;
i.
All public offices shall be held in trust for the people
ii.
All persons placed in positions of leadership and responsibility shall, in their
work, be answerable to the people
iii.
All lawful measures shall be taken to expose, combat and eradicate
corruption and abuse or misuse of power by those holding political and
other public offices.

Article 17 of the Constitution of the Republic of Uganda provides for Duties of a


citizen
(1) (d) to protect and preserve public property.
(i) to combat corruption and misuse or wastage of public property

Legal Framework Continued


The Anti-Corruption Amendment Act

2015,
The Inspectorate of Government Act
2002,
The Public Finance Management Act
2015 (PFM),
The Leadership Code Act 2002 (LCA)
The Public Procurement and Disposal
of Public Assets Act 2003.
The Whistleblowers Protection Act
2010

Policy Framework
Zero Tolerance:

The Government adopted the zero tolerance to corruption policy


in 2006. The policy spells out the Governments approach to
tackle corruption and details priority actions and targets.
Zero tolerance has been defined as;
Taking prompt and decisive action to respond to all incidences of

corruption;
actively promoting ethical conduct;
effectively implementing measures to prevent occurrences of
corruption in society;
widely disseminating the results of the actions taken.
The implications of this policy are substantial and require a major
change in the way Ugandan society operates if a culture is to be
created were all forms of corruption are confronted and rejected.
Devising and delivering such a policy is however a significant
challenge.

Institutional Framework
The Inspectorate of Government: Established

under Article 223 of the Constitution of the


Republic of Uganda, is the lead anti-corruption
body in Uganda, with the mandate to eliminate and
foster the elimination of corruption, abuse of
authority and of public office.
Office of the Auditor General: Provided for under

the Constitution and the Audit Act, 2008; this


institution is responsible for auditing of the accounts
of Central Government, Local Governments,
Administrative Units, Public Organisations and
bodies in which the Government has any interest.

Anti- Corruption Institutional Framework contd


Director

of Public Prosecutions (DPP) & The


office of DPP is established under Article 120 of
the Constitution of Uganda, and is in charge of
criminal prosecutions in Uganda. In execution of
his mandate, the DPP supervises investigations
carried out by the CIID of the Uganda Police.

Criminal

Investigations Department of the


Uganda Police (CID): The Directorates
mandate is to ensure effective investigations,
detection and prevention of crime in the country

Anti- Corruption Institutional Framework


Public

Accounts Committees of Parliament: The Public Accounts Committee


and the Local Government Public Accounts Committee are standing committees of
Parliament, as provided for under Part XXIV of the Rules of Procedure of the
Parliament of Uganda; which scrutinise the reports of the Auditor General and
make appropriate recommendations for consideration of the Plenary (Parliament).

The

Public Procurement and Disposal of Public Assets Authority (PPDA):


PPDA is the regulatory body for public procurement and disposal activities in
Uganda established through the Public Procurement and Disposal of Public Assets
Act No.1 of 2003. Its overall objective is to promote transparency and efficiency in
public procurement and disposal through the elimination of all forms of corruption
that have greatly hindered development in the country.

The

establishment of the Anti-Corruption Court as a Division of the High Court to


exclusively handle corruption cases.

Anti- Corruption Institutional


Framework

The Directorate of Ethics and Integrity in the Office of the


President:
The Directorate is responsible for initiating national anticorruption legislation, policies and other initiatives. The
directorate was established to raise the issue of corruption to a
cabinet level, to coordinate government efforts in its fight
against corruption through the Inter Agency Forum, and to
establish an integrity system that promotes good governance. It
is mandated to implement the government's zero tolerance to
corruption policy.

Ministry of Finance, Planning and Economic Development:


Under the Public Finance Management Act, 2015; the Secretary
to the Treasury is designated as the chief implementing officer
for the Act, which provides for the regulation of financial
management in Government; and prescribes responsibilities of
those entrusted with financial management in Government.

THE INSPECTORATE OF GOVERNMENT


AND THE FIGHT AGAINST CORRUPTION

The Inspectorate of Government (IG) is


a lead anti-corruption agency charged
with the responsibility of eliminating
corruption, abuse of authority and of
public office, promote fair, efficient and
good governance in public offices, to
supervise the enforcement of the
Leadership Code of Conduct and to
stimulate public awareness about the
values of constitutionalism in general.
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MANDATE, VISION & MISSION OF THE


INSPECTORATE

Mandate:
Promoting just utilization of Public Resources
Vision:
Responsive and Accountable Public Sector
Mission:
To promote Good Governance, Accountability
and the Rule of Law in Public offices
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MANDATE
The mandate of the IG as derived from the functions
enshrined in chapter 13, Article 225 of the
Constitution of Uganda (1995) is To promote just
utilization of public resources, through four
cardinal roles of:
The Ombudsman Function Article 225(1) (a), (c)
and (e) of the Constitution;
Anticorruption Function Article 225(1) (b) and
Article 230(2) of the Constitution; and
Enforcement of Leadership Code of Conduct
Article 225(1) (d) and Article 234 of the
Constitution; and Section 3 of the Leadership
Code Act, 2002 (Act 17;
Stimulation of Public awareness about the values
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FUNCTIONS OF IG
Specifically under Article 225 Clause 1 of the Constitution, the IG is
assigned the following functions;
a) To promote and foster strict adherence to the rule of law and
principles of Natural Justice in administration;
b) To eliminate and foster the elimination of corruption, abuse of
authority and of public office;
c) To promote Fair, Efficient and Good Governance in Public Offices;
d) Subject to the provisions of the constitution, to supervise the
enforcement of the Leadership Code of Conduct;
e) To investigate any act, omission , advice,
decision or
recommendation by a public officer or any other authority to
which this article applies, taken, made, given or done in
exercise of administrative functions; and
f) To stimulate public awareness about the values of
constitutionalism in general and the activities of its office, in
particular, through any media and other means it considers
appropriate.
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GENERAL POWERS OF THE INSPECTORATE OF


GOVERNMENT
For the purposes of performing its functions, the
Inspectorate has the general powers laid down
under Section 12 of the Inspectorate of Government
Act, 2002 which include; authority by IG officers to
investigate allegations of corruption, abuse of
office, maladministration and breach of the
leadership code of conduct.
The Inspectorate also, has powers to enter and
inspect the premises or property of any department
of Government, person or any authority; to call for,
examine and where necessary, retain any document
or item in connection with the case being
investigated, found on the premises; and may,
in
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BACKGROUND TO THE
INSPECTORATE OF GOVERNMENT
The IG was established in 1986
Constituted under Chapter 13 Constitution and Inspectorate of

Government Act 2002


IG COMPRISES:
IGG Justice Irene Mulyagonja Kakooza
DIGGS Ms. Mariam Wangadya
- Mr. George Bamugemereire
Accounting Officer - Secretary to the IG, who is at the level of
Permanent Secretary and appointed by the President on the
advice of the Public Service Commission
The IG may Appoint Inspectorate Officers to help them carry
out mandate

Justice Irene Mulyagonja (C), Ms. Mariam


Wangadya (R)
George Bamugemereire(L)

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CORRUPTION defined
Derived from the Latin verb Corruptus which means to

break and literally means a broken object

Corrupt

behavior is dishonest or wicked behavior.


Behavior which departs or deviates from the established,
known and generally accepted ethics, morals, traditions,
laws and civic values and virtues of society. It is a
departure from what is pure or correct. A corrupt person
is therefore one whose morals, conduct, character, values
and ethics have broken and collapsed.

In

a broader sense: Behavior of persons; whether


politicians, civil servants, business managers, or private
individuals in which they improperly and unlawfully enrich
themselves, or those close to them, by misuse of the
power , responsibility, or resources entrusted to them.

CORRUPTION Definition
contd
The World Bank and Transparency International

have defined corruption as the misuse of entrusted


power for private or personal gain. By this
definition, corruption entails misusing ones office for a
private gain or unofficial end. This version of the
definition is the one adopted by the African Union
Convention on prevention and combating of corruption
and related offences, Article 4 thereof.

The Inspectorate of Government Act, 2002 defines

corruption as The abuse of public office for private


gain and includes but is not limited to
embezzlement,
bribery,
nepotism,
influence
peddling, theft of public funds or assets, fraud,
forgery, causing financial or property loss and
false accounting in public affairs.

2015 Corruption Index Selected Countries


The Corruption Perceptions Index ranks countries and territories based

on how corrupt their public sector is perceived to be. A country or


territorys score indicates the perceived level of public sector
corruption on a scale of 0 to 100

1 Denmark 91
2 Finland 90
3 Sweden 89
40 Seychelles 55
44 Rwanda 54
117 Tanzania 30
139 Kenya 25
139 Uganda 25
150 Burundi 21
163 South Sudan 15
167 Korea (North) 8
167 Somalia 8

COMMON FORMS OF CORRUPTION


Bribery
Extortion
Embezzlement
Diversion of funds
Neglect of duty absenteeism, late
coming, non-performance
Nepotism recruitment and tender awards
Use of forged academic documents
False accountability
Non accountability of advanced money
Inflating of BOQs
Procurement irregularities
Shoddy works, etc
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CORRUPTION TRENDS
Corruption entrenched in society - According to the 4th Data

Tracking Mechanism Report 2014 Eight out of every ten


Ugandans believe that corruption is a serious problem in the
country.
Syndicate

corruption growing a chain of officials in the


same or different institutions collude to embezzle or misuse
public resources and to cover the audit trail e.g. Pension
Scandal, Katosi Road scandal, OPM scandal etc

One identifies loopholes, another executes, another facilitates,

another makes payments, another covers up, another looks on,


the public is affected.

CORRUPTION TRENDS
CONTD
Corruption entrenched in society - According to the 4th Data

Tracking Mechanism Report 2014 Eight out of every ten


Ugandans believe that corruption is a serious problem in the
country.
Syndicate

corruption growing a chain of officials in the


same or different institutions collude to embezzle or misuse
public resources and to cover the audit trail e.g. Pension
Scandal, Katosi Road scandal, OPM scandal etc

One identifies loopholes, another executes, another facilitates,

another makes payments, another covers up, another looks on,


the public is affected.

Corruption trends contd


Management by crisis Corrupt public officials

deliberately refuse to plan early enough in order to


create a crisis later that would justify rushed decision
making.
As a result hefty expenditures are hurriedly approved

without time for detecting any flaws in the


transactions.
Glorification of corruption by the public -

Corruption has been glorified as an acceptable way


of life. Wealthy members of society are regarded as
heroes even when they are known to have acquired
their wealth through corrupt means.

Corruption trends contd


Increased role of Information Technological

Government has undertaken automation e.g. the


Electronic Funds Transfer (EFT) system and the
Integrated Financial Management Systems (IFMS)
instituted by the Ministry of Finance Planning and
Economic Development (MoFPED) that are supposed
to be efficient. However, these systems have instead
made it easier to steal bigger monies, and to conceal
the fraud!

LEVELS OF CORRUPTION
1. Grand corruption involves large
Government Bodies
Examples in recent times include:
Embezzlement of UGX 375 billion in the
education ministry in 2012;
Loss of UGX 5 billion intended for the
purchase of bicycles for local officials in
2011;
Misappropriation of UGX 205 billion
intended to implement the national
identity registration exercise in 2011;
Loss of UGX 58 billion within the OPM in
2012;
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LEVELS OF CORRUPTION
Grand corruption Contd
The Ministry of Public Service/ Penshion

scandal involving over 265 billion


suspected embezzled Officials convicted
for 83 billion.
The Office of the Auditor General (OAG)
reported that US$ 12.9 million were paid
by Ministries, Departments and Agencies
to various contractors for work that had
not been executed in FY 2013/2014
Katosi case in Court currently
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Levels of Corruption
Contd
2. Political corruption
Involves leaders e.g. vote buying. As a
result of irregularities in the last elections,
the Electoral Commission spent about UGX
300 million to organize by-elections for
cancelled results.

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Levels of Corruption
Contd
3. Petty corruption
At individual level, e.g. Bribery of Police
Officers. 17 percent of surveyed Ugandans
report having to pay a bribe in the past 12
months to a public servant to access a service
that should have been provided without
charge. The total value of these small bribes
in 2014 was approximately UGX 167 billion

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Causes of Corruption
Moral degeneration leading to abandonment of

ethical standards and integrity by public servants in


executing their duties.
Greed coupled with the desire for self-enrichment
Shift in the middle age crisis coupled by peer
pressure
Commercialization of politics so that it has become
a game of the rich forcing politicians to get money at
all costs so as to sustain the campaigns, buy the votes,
and then recover what they spent on the whole
process once they get into office.
Social-economic conditions such as poverty and
unemployment aggravated by the poor cultural
systems such as polygamy and extended families, thus
increasing the dependence burden on the heads of
families forcing them to steal what belongs to the
public.
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Causes of Corruption
Contd
However, corruption thrives because of Institutional

reasons such as poor supervision and weak checks


and controls
Uganda has very good anti-corruption laws, policies and

institutions such as the IG, DPP, and Anti Corruption Court.


However, there is general institutional break-down
There are weak checks and controls, and poor supervision.
Result: Corruption at all levels, both in central and local
government covering all aspects such as recruitment of
personnel, procurement, and activity implementation.

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Mbarara Municipality
Three roads reconstruction projects funded under USMID should have been completed
during the FY 2014/15. The procurement processes delayed start of the works for two
years. Construction works started about three month ago and is expected to last for one year.
Kabale and fort portal Municipalities had similar challenges.

SOROTI- AMURIA ROAD


The contract for periodic maintenance of this road was awarded by UNRA in march 2015 for
a period of 16 months. 14 months down the road, the contractor had only done
approximately 10% of the work required. The current staus of the road is as shown below.

Mbale Municipality
The Municipality was funded under USMID Project for reconstruction of three roads. The
contract period was one year but it has now taken two years yet drainage, lighting and other
works have not been done. This same contractor has delayed to complete similar works in
Soroti, Tororo and Hoima Municipalities . Below is the recent picture of Pallisa Road, Mbale
Municipal

Mbale Municipality
The Contractor had abandoned working on this road for many months but they recently
resumed it after IG intervention. The Contract period ended on 30 th June 2016.

Alwi Sub County Administration


Block Nebbi
The administration block was rehabilitated in FY 2015-16 using PRDP2 funds. The
pictures below were taken after the renovation

Kalotom Primary School,


Napak

The pictures below show cracks (measuring 16mm) on the wall of staff houses that were
constructed in FY 2011/12 using PRDP2 funds. The houses have since been condemned.

ILLUSTRATION OF CORRUPTION
CASES
Chakali Primary School in Apac District

Contract signed:
4/5/2011
Expected completion
date: 2/8/2011
Status: Incomplete
Photograph taken in
September 2014

Incomplete Staff house at Alao


Primary School in Oyam District
Start date:
4/2/2011
Status: Incomplete
and abandoned
New contract:
signed on 5/6/2014.
Photograph taken
in July 2014

Classroom Block at Apiioguru


Primary School in Kole District
Contract signed:
27/6/2014
Expected completion
date: 27/9/2014
Status: Incomplete
Photograph taken in
September 2014

Incomplete Staff house at Alao


Primary School in Oyam District
Start date:
4/2/2011
Status: Incomplete
and abandoned
New contract:
signed on 5/6/2014.
Photograph taken
in July 2014

Fencing of Busiu Health Centre


IV in Mbale District

Start date: FY 2012/13


Status: Incomplete
Photo taken in August
2014

Incomplete works on Akeit-OgoomaKalapata Road in Ngora District

POOR QUALITY/SHODDY WORKS


POORLY DONE VERANDAS ON
COMPLETED BUILDINGS IN BUSIA
DISTRICT

Leaking ceiling and cracks on Staff house and latrines


at Namanyonyi Health Centre III in Mbale District

Cracked wall and floor of a latrine


at a Namanyonyi Health centre III
in Mbale

Aperkira Health Centre,


Kaberamaido

An Out Patient Department (OPD) was constructed at the Health Centre III using PRDP2
funds in FY 2012/13. Similar health infrastructural projects lie unused in other districts

Abattoir constructed in Paidha Town Council, Zombo

The project was funded using PRDP funds in FY 2013-14. It has been completed but
it is not in use. Similar infrastructure is also in Pader District

Poorly fitted septic tank at Bamudanda Health Centre


III in Mbale District

Disjointed window
from the frame at
Keuka Primary
School in Pallisa
District

Latrine with broken


hinges

Peeling ceiling on wall of District


Health office in Serere District

Cracks on the veranda apron area


of two classroom block at Ogelak
Primary School in Serere District

Cracks On the wall of OF Bululu


Health Centre III Laboratory in
Kaberamaido District

Cracks on bathroom floor of staff


house at Kapir Health Centre III in
Ngora District

Poorly constructed pit latrine at


Kapir Health Centre III in Ngora
District

Cracked base of a water harvesting


facility at Mukura Health Centre III
in Ngora District

Poorly constructed steps of


staff house at Kosiroi Primary
school in Moroto District

Poorly rectified defects at Loputuk


Primary School in Moroto District

Cracked tank cover at Lokiteded


Mini Abattoir in Napak Town Council

Cracked wing wall on AsingeMorukebu-Kalait Road in Tororo District

Cracked Headwall

CONSEQUENCES OF CORRUPTION

Corruption harms public service by threatening the

provision of basic public infrastructure and services that


all people are entitled to.
It compromises the quality of civil service
especially where persons are hired or promoted
corruptly due to nepotism or favouritism, or tenders are
secured corruptly instead of on merit. This leaves out
competent people
It threatens democracy because politicians become
less accountable to the people so the people in effect
lose their voice.
It decreases investment because many foreign
businesses and Governments are hesitant to invest in
countries which are corrupt. Furthermore, corrupt
Governments have fewer resources to invest in
infrastructure
that promotes economic development.
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CONSEQUENCES OF CORRUPTION contd

It escalates poverty as it allows only a few rich and


well connected people to have money at the expense of
the poor majority, thus perpetuating unequal
distribution of asset ownership and unequal access to
education, hence widening the gap between the rich
and the poor.

The most vulnerable groups suffer the most


because these depend on support from government yet
corruption diverts public resources away from social
sectors and the poor, increases the cost of public
services, lowers the quality of public services

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SPECIAL POWERS OF IG
The IG is granted special
powers under Article 230 of
the Constitution and Section
14 of the Inspectorate of
Government Act 2002. These
powers include the following:
Investigate, arrest, cause
arrest, prosecute, cause
prosecution in respect of
corruption and abuse of
authority or public office;
During the course of
duties of IG, IGG or D/IGG
to make orders and give
directions where
necessary and appropriate
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63

SPECIAL POWERS OF IG CONTD


Enter

into, inspect, any premises or


property of a government department,
person or authority and call for, examine
and retain any document, and carry out
any investigation therein;
search any person and retain any
document or item in connection with the
matter being investigated found with or
on him or her (includes power to enter
and make searches in Commercial
Banks).

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MEASURES TAKEN BY IG
Three pronged approach to fighting corruption: Preventive,
Enforcement and Recovery/Reparation.
Enforcement approach is aimed at detection, investigation,

punishment of offenders and making directives for corrective


action to be taken where applicable. This is through
administrative action or prosecution of culprits.

The principle of recovery is used to ensure that proceeds of

corruption are recovered by the public. Under this strategy the


IG has successfully recovered embezzled funds from a number
of public officials and has also confiscated a number of
corruptly acquired assets. in 2013, UGX 25.6 billion were
saved as a result of IG investigations into corrupt

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Measures by IG Contd
The preventive approach
The Inspectorate of Government uses a two-pronged approach to
prevent corruption. These are the public awareness programmes
and the policy and systems studies.

i. Public awareness programmes - the Inspectorate of


Government carries out sensitization campaigns to educate the
public about constitutionalism, the dangers and effects of
corruption and remedial measures that can be taken against it. This
is meant to: create a hatred for corruption among the public so that
they can actively participate in the fight against it; empower them
to access public services, without having to pay bribes; empower
them to use their constitutional Rights to exercise their civic duties
and responsibilities and encourage the public to report cases of
corruption to the Inspectorate of Government.

ii. The policy and systems studies: under this programme,


studies are carried out into operations, systems, procedure and
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legislation
of various Government Departments and institutions

MONITORING GOVERNMENT PROJECTS


Monitors government programs to improve

accountability for funds (TAAC, NUSAF & PRDP)


Involvement of IG from early stage has greatly

reduced corruption in Government projects e.g.


NUSAF 1 VS NUSAF 2

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Performance of IG
IG investigates about 2000 allegations of

corruption each year


In 2014 IG prosecuted 131 cases of corruption
In 2015 IG prosecuted 256 cases of corruption
Conviction rate stands at 82.5%, according to

the statistics for FY 2015/2016


In 2015 IG efforts saved government loss of
UGX 40bn as a result of its investigations
In the same year IG recovered UGX
2,131,254,229 in its Asset Recovery Account
with BOU.
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Prosecution Record of IG:


2013

2014

2015

2016 16

CONVICTIONS

19

27

52

15

ACQUITTALS

10

DISMISSALS

WITHDRAWALS

13

ABETMENTS

TOTAL

32

51

68

21

Devising Sustainable anti corruption strategies

We must take into consideration the changing

nature of corruption
Take into account international nature Mutual
assistance
Strengthen regional bodies like EAACA
Need for specialised training of Investigators,
Prosecutors and Judicial Officers to keep up with
new trends
Role of Information technologies
Need to follow the money focus on recovery; not
just sanctioning
Deploy adequate resources human and financial
to match the need
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Devising Sustainable anti corruption strategies contd

Devise faster ways of disposing with corruption

cases Anti Corruption Court has performed well,


but cases still stall at appeal need for
specialised Appeal division
Cooperation of anti corruption agencies
Early involvement of anti corruption agencies like
the IG in Government Projects, e.g. success of
NUSAF 2 VS. NUSAF 1
Strengthen monitoring at ministry and local
government level
Adequate
and
timely
financing
of
local
governments by Ministry of Finance
Encourage the public to shun corruption and
report it rigorous public engagement
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WAY FORWARD
Corruption is an evil
we all must fight. It is
a fight we cannot
afford
to
lose.
However, it requires
total commitment to
the spirit of Zero
Tolerance
to
Corruption by all the
Stakeholders.

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72

Thank you for listening


For God and My Country

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