DECENTRALISATION POLICY; THEORY AND PRACTICE

IN UGANDA

A PAPER PRESENTED AT THE TRAINING WORKSHOP FORUGANDAN JOURNALISTS, AFRICAN CENTRE FOR MEDIA

EXCELLENCE, KAMPALA 12TH MAY 2014

PRESENTED BY:

MAGYEZI RAPHAEL

MP - IGARA WEST

(0772317756; magyezir@yahoo.com)

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DECENTRALISATION POLICY; THEORY AND PRACTICE IN UGANDA

1. Introduction

This paper has been prepared for participants at a training workshop ofUgandan Journalists, organized by the African Centre for Media Excellence inKampala. It is intended to enable the participants review the policy ofdecentralization, understand its basis in law, gain more insight in the inter-governmental relations and structures and stimulate them to discuss theachievements and practical challenges of its implementation. There is a briefdiscussion on the role of the media in LG and the advantages that wouldpossibly arise from enhanced media coverage of LG issues. The paper ends withsome recommendations for the way forward to improve decentralization so as totake it to its logical conclusion of better services to the people of Uganda.

2. Background

The pre-colonial period in Uganda was characterised by traditional kingshiprule. The king delegated some powers to the chiefs to manage smaller units ordivisions of the kingdom. The kingdoms continued to operate alongside thecolonial Government, creating a situation of a 'modern' government workingalongside the traditional system. In 1962 Uganda gained independence from theBritish under a multiparty political system. The local administrations were givensubstantial powers under the Constitution, with substantial local taxes andservice mandates. In 1967 the Government abolished the kingdoms centralisedpower. 1971 - 1986was characterised mainly by military and party dictatorships.1986NRM capture of power was on a ID-point programme commitment, amongwhich was the empowerment of the people to participate in their governanceand destiny, seen as a fundamental change in the country's politics.

3. What is Decentralisation?Decentralisation stems from the two words: 'de' which means removing orreducing something and 'central' which means something close to the middle.Centralism is the action of putting things under single control. To decentralisetherefore is to remove or reduce or decongest things from central control tosmaller units away from the nucleus. In general, the term decentralisation isusually used to refer to the transfer of the responsibilities of governance from thecentral government to lower levels of authority.

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4. Forms of Decentralisation• Devolution: The transfer of power for discretionary decision-making, forpolicy, planning, administration and management from CG to independentLGunits with corporate status.

• Delegation: Shifting of responsibility for decision-making and administrationof public functions from CG to semi-autonomous organisations not whollycontrolled by the CG, but ultimately operating as its agents.

• Deconcentration: Redistribution of decision-making authority and financialand management responsibilities among different levels of the CG units ordepartments, i.e., shifting responsibilities from CG officials in the capital cityto staff working in the regions, provinces, or districts, under CG ministries.

• Privatisation: The transfer of power for public service delivery to privatesector agencies.

5. Objectives of Decentralisationa. Transfer real power to the Local Councils and thus reduce the load of workon remote and under-resource central officials.

b. Bring political and administrative control over services to the point wherethey are actually delivered thereby improving accountability andeffectiveness and promoting the people's feeling of ownership ofprogrammes and projects executed in their areas.

c. Free local managers from central constraints and, as a long-term goal, allowthem develop organizational structures tailored to local circumstances.

d. Improve financial accountability and responsibility by establishing a clearlink between the payment of taxes and the provision of services they finance.

e. Improve capacity of Local Councils to plan, finance, and manage services.

6. Structure of Local GovernmentsThere are Local Governments and local administration units. The LGs arecorporate entities with power to sue or be sued. Within each LG there is a localcouncil (legislature) which is the highest decision making organ. It is under theSpeaker, assisted by the Deputy Speaker. There is an Executive Committee,headed by a Chairperson (or Mayor in towns) and a number of secretaries. Theadministration arm is headed by the CAO (district), Town Clerk (town) oradministrative secretary (Subcounty). There are other statutory board,committees or commissions to assist in the running of the LG affairs. These .•include District Service Commission, District Public Accounts Committee,district Land Board. The Resident District Commissioner (RDC) is appointed bythe President and should have the qualifications of a Member of Parliament.

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7. Legal Framework for Decentralisation

a. Local Governments (Resistance Councils) Statute 1993

This repealed the Local Administrations Act, 1967; the Urban Authorities Actand the Resistance Councils and Committees Statute 1987. In October 1992ThePresident formally launched the decentralisation policy, hence the 1993 Statutewas meant to provide the legal framework for the policy. The law gave thecorporate status to the LG Councils, with power to sue and be sued. TheChairman and other Councillors were not full-time but entitled to allowances.This law gave more powers to the RCs in terms of policy making, legislation,budgeting and planning. More important, it provided for the Minister to devolvefunctions, powers and responsibilities to the RCs. It created office of CentralGovernment Representative (CGR),who took precedence over all officials in theDistrict, with powers of oversight, immigration, project monitoring, massmobilisation, advice to Council. There was put in place District ServiceCommittee appointed by the DRC, with powers to appoint, confirm, discipline,promote and remove all staff in the District. Provision was made for financing ofthe LGs, including local taxes and grants. A Local Government Tender Boardwas established in every district

b. Constitution of the Republic of Uganda 1995

The Constitution provides fundamental Principles of State Policy that are Centralto Local Governance, e.g. the right of all Ugandans to access leadership positionsat all levels, involving the people in formulation and implementation ofdevelopment plans and programmes, gender balance and fair representation ofmarginalised groups, balanced and equitable development for all areas,protection of natural resources, accountability and transparency. There is a fullChapter (11) on the Local Government system, principles and structures. Thepolicy of decentralisation by devolution as the system of LG in Uganda to applyat all levels of LG is entrenched in the Constitution. The Local Council is thehighest political authority within its area of jurisdiction, with the Chairperson asthe political head of the respective LG. The Constitution introduced the positionof Speaker at LG level for better checks and balances of political power at Locallevel. It provided for all staff in the District including the Chief AdministrativeOfficer (CAO) to be appointed by the District Service Commission. It devolvedthe powers for revenue, budgeting and planning to LGs and introducedunconditional, conditional and equalisation grants to finance decentralisation

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c. The Local Governments Act 1997

The Act was meant to give effect to decentralisation by operationalising theConstitutional provisions on the LG system. It gave the procedures for election oflocal councils and vacationj removal of various officers from their posts. It gavethe details of roles and functions of different organs and defined the extent of thepolitical, executive, legislative, planning, budgeting and administrative powersof the LGs and administrative units. It also described the District Public Serviceand qualifications of members to serve in the LG. The Act introduced the officeof Clerk to Council and Secretary District Service Commission and set terms andconditions of LG public service to conform to those of the National public servicegenerally. The law gave autonomy to Urban Councils in planning and financialmanagement. It defined the role of Ministries in LGs as inspection, monitoringand technical guidance to LGs and gave circumstances for take over of a Districtby Government. Within the schedules it defined emoluments of councillors,functions and services of various levels of LGs and LG council operationalregulations.

d. Local Governments Financial and Accounting Regulations 1998

This was first given under the Statutory Instrument no. 295 of 1995 and revisedin 1998 to reflect the changes made by the 1995 Constitution and the LocalGovernments Act 1997. It gave the much needed guidelines on LG accountingand finance management, general control and supervision of financialtransaction of LGs. It spelt out functions of the various organs, including theFinance Committee, the CAOjTown ClerkjSubcounty Chief, the Chief FinanceOfficer and Internal Auditor. The regulation gave procedures for revenuecollection, custody of public funds, stores and assets, procurement of goods andservices, payments of salaries and other operations, losses, board of survey andfinancial affairs of subcounties, with sample formats for various entries.Amendments in the regulations have been made to accommodate the changingenvironment in managing the LGs.

e. Amendments to the Local Governments Act

1. July 1997, an amendment to provide for the establishment andcomposition of interim councils for newly created LG units, pending .•.elections for those councils.

11. June 2001, a general amendment of various sections, some of which were:giving Municipal status to City Divisions; prohibiting attachment of LG

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fixed assets and monies; permitting Members of Parliament to attendDistrict Council meetings; procedure for removal of Speaker, Chairperson,member of Executive and CAO; representation of the elderly on Councils;permitting the President to appoint such number of Deputy and AssistantRDCs in a District as he may determine; personal liability for loss incurredto council; emoluments of Boards and Commissions to be paid fromConsolidated Fund; Urban Tender Boards.

111. November 2001, an amendment to provide for: councillors not to hold twopolitical offices; nomination, approval and removal of parish and villageExecutive Committee members; quorum at Parish and County councilelections; timing of LC elections.

iv. July 2001, an amendment to cater for: limiting expenditure on councillorsallowances to 20% of previous year's local revenue; prohibiting devolvingsalaries of staff of subcounties; sharing of revenue in urban councils

v. August 2004, an amendment giving the Minister powers to fix theminimum rates of emoluments and allowances of Councillors

Vl. August 2004,a Legal Notice declaring certain areas as TownsVll. December 2005, a general amendment to effect changes made in the

September 2005 amendments of the National Constitution with respect to:abolition of graduated tax; recentralising appointment of CAOs, DeputyCAOs and City/Municipal Town Clerks; reducing the number ofSecretaries on Executive Committees from 5 to 3; increasing term of officeof LG politicians from 4 t05 years; resignation of public officers who wantto stand for political posts; making Deputy Speaker part-time.

Vlll. January 2006, an amendment to provide for: abolition of Tender Boardsand introduction of Contracts Committees; establishment of Procurementand Disposal Units; regulations regarding procurement at LG level

IX. June 2007,an amendment introducing establishment of Town Boardsx. July 2007, an amendment introducing new LG taxes, i.e. the Local Service

Tax and the Local Hotels Tax. (Plus several other amendments todate).

f. Other Key Reforms

• Establishment of local council courts• Introduction of Regional Government• Introduction of the multiparty dispensation• Abolition of graduated tax• Implementation of the staff restructuring exercise• Reform of public procurement and disposal of public assets• Creation of new districts and lower LGs

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8. Advantages of Decentralization

i. Political decentralisation• Decentralization was entrenched in the Constitution and given full effect byan Act of Parliament giving it strong legal framework

• The highest office in the Country gave the policy strong commitment andsupport, thereby ensuring the necessary political will.

• Stakeholders, i.e., donors, line ministries, the local government associations,civil society organisations and the community supported the policy.

• The powers for political, executive and legislative decision-making werecascaded down to the people to exercise through their elected Councils.Participation of the population in governance was strengthened by ensuringregular free and fair elections. The people were given powers to choose andremove their local leaders. Hence, building local democracy

• Affirmative action for marginalized groups, including women, people withdisabilities, the youth and the elderly with representatives in councils.

H. Fiscal Decentralization• Local Governments were given power to collect local taxes and to managerevenue at their disposal. The different levels of Council were assured of ashare of the local resources on a clear formular.

• Funds were transferred from the Central Government to the LocalGovernments through unconditional grants, conditional grants andequalization grants. This availed more resources at the local level to financedevelopment programmes.

• Local Governments were given powers over their planning and budgetingfunctions. It was no longer necessary to refer to the Center for approval ofplans and budgets. LGs were also given training in bottom-up and medium-term comprehensive planning and budgeting.

• The socio-economic infrastructure underwent massive rehabilitation andconstruction. In all Districts, Uganda saw an increase in roads, health units,schools, water services, through implementation of Governmentprogrammes like UPE, PHC, NAADS, etc...

Hi. Administrative Decentralization• The Staff and payroll management were decentralized. This led to an increasein staff efficiency, since the employer was on sight unlike under thecentralized system where the master operated remote control of staff.

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• The new system established Boards, Commissions and Committees at theLocal Government level to strengthen administration and service delivery.These include District Service Commissions, Contracts Committees, LandBoards and Committees and Local Government Public AccountsCommittees .

• The function of training and general capacity building was decentralized.Local Governments were given resources to undertake their own HumanResource Planning and Development.

9. Challenges in Implementation of Decentralisation

a. Gaps in the Legal FrameworkThe LG Act has been amended so much that it is at times difficult to trace theoriginal provisions. Even then there are still some glaring gaps in the law andpractice that need to be filled to make the system truly democratic andpredictable. Such aspects are:

• Judicial powers of LC courts, in view of multiparty dispensation

• Separation of powers between the Executive, legislature and theadministra tion

• Contradiction between policy and practice, apparent shift from devolution tomilder forms of decentralisation

• Failure to hold LC elections within the stipulated time

• Position of RDC in the LG setting

b. Meeting the Ideals of Decentralisation by DevolutionIn reality the system is heavily centralised and local authorities are seen as a 'tier'of government, or, just an extension of the State. LGs are still not perceived asentities that can make decisions of their own without interference by the centralgovernment. The turn around was the recentralisation of CAO and TCs, followedby the general feeling that LGsmust be controlled by the Centre.

c. Weak Revenue BaseAlthough in theory LGs possess the legal authority to impose taxes and to spend •.according to their own approved budgets, in reality the tax base is so weak andthe dependence on central government subsidies so ingrained that no attempt ismade to exercise that authority. The critical challenge emerged when the

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graduated tax was abolished, without a viable alternative to raise meaningfullocal revenue. The Local Service Tax and Local Hotels Tax failed to generateadequate revenue. The result has been too many assignments for service deliverywithout matching resources (unfunded mandates).

d. Quest for Federalism

There is the argument as to whether it is the Federal or Unitary system ofgovernance that can best facilitate decentralisation and development. Thecontention is that under unitary system, sub-national units (local governments)function largely as administrative units of the centre, within legislative powersassigned to them by the centre. This contrasts with the federalist system wheredifferent independent governments make public decisions and provide increasedopportunities (more than unitary system) for the participation of the localpopulation. However, the federalist system is more expensive, and institutionalframeworks are more difficult to design. Which ever system is chosen,cooperation and coordination between levels of government is key to makingdevelopment work and capacities must be strong at local government levels toensure performance and access to the citizens.

e. Creation of New Districts

Given mainly to take services closer to the people, the districts have becomecheap tools of political bargaining for votes and political posts. Most of them arepoorly funded, have no staff to deliver the services and are simply unsustainable.Many councilors abandon their lucrative jobs only to end up in disillusionment,quarrels and bickering. The current moratorium on new districts has reduced thepressure, but perhaps only temporarily.

f. Corruption

There is little effort to cushion LGs against the vice of corruption that has eatenup the fabric of public service and the society generally. Problems with tenders,shoddy work, failure to supervise and monitor projects have weakened the

••policy. That is the reason why some people claim that Government decentralizedcorruption to the LGs.

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g. Weak Legislative and Technical Capacity

Most LGs have not made use of the provision in the Local Government Act forthem to make and pass bye - laws and ordinances. The challenge is the lack ofcapacity in the councils to legislate or draft these laws. This is in addition to poorpay of LGworkers and the fact that the staffing levels in most LGs are to.olow toenable them render services efficiently and effectively. In others there are noDistrict service Commissions, while most District PACs are dysfunctional.

h. Weak Participation by Stakeholders

The law permits several stakeholders, notably community, private sector, civilsociety, cultural institutions to participate in local governance. However, there islittle information available to the public on the performance of the LGs. Thecommunity has become non-caring and less interested in demandingaccountability from their leaders. This is worsened by the over-commercialisedelections, which compromises efficiency in community-LG relations. The privatesector and civil society are not so well organized and are poorly resourced andhence unable to take on the LGs on matters of accountability and standardservice provision.

10. Media Role in LG• Information and communication to the public about management of publicaffairs by LGs

• Investigation, research and monitoring. This is aimed at promoting efficiency,accountability and transparency

• Mobilisation of communities, civil society and development partners tosupport Government programmes.

• Attendance of council meetings and events so as to give them coverage andvital audio and visual records

• Raising proposals for reforms and presenting alternative policies, givinginternational practice, local and Regional case studies.

• Performance analysis, recognition and penalty. The media is vital inencouraging good performance by LGs.

• Exemplary conduct and adherence to ethical standards

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11. Recommendations for the Way Forward

a) Strengthening the legal framework: It is important to strengthen the legalframework for decentralization even further so as to deter any possibility ofwatering down the achievements already registered.

b) Deepening Participatory Democracy: Participatory governance anddemocracy entails a regulatory framework for the task of running publicaffairs that is not solely entrusted to Government and the publicadministration, but involves co-operation between state institutions and civilsociety groups. Unfortunately, the role of civil society in local governance inUganda is still weak and needs to be enhanced if decentralisation is to yieldtrue participatory democracy.

c) Improving Capacity to Manage Multipartyism: The transition to multipartypolitical dispensation is a key issue for all tiers of government, including theLGs.The implications on council procedures, resource allocation and capacitybuilding need to be quickly studied and the necessary measures put in place.

d) Federal GovernmentfRegional Tier: The debate on the need for politicalreforms in Uganda introduced the concept of federal government.Government proposed the Regional Government as a possible alternative, butthis has failed to take off so far. The Country needs to carefully consider thevarious aspirations of different interest groups so that their implications fordecentralization are known and taken care of appropriately.

e) Reviewing Financing of LGs: A Government without tax cannot stand thetest of time because it will not safeguard its autonomy. The Local Governmenttax system needs a complete overhaul with strong safeguards against politicaldisruptions. The grant transfer system, too, needs to be improved to ensureadequate financing of the decentralised services.

f) Restructuring of Local Governments: This has to be done afresh. The countryneeds to re-think its sub-national structures, their responsibilities andcomposition. Implications on financing have to be adequately addressed.Where necessary some of the redundant structures should be removed and .•..small and unviable units be amalgamated. It is important to ensureappropriate and motivated staffing in key positions that will help totransform and modernise the Local Government systems.

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g) Information Communication Technology: The need for up-to-date ICT forLocal Governments cannot be over-emphasised. Investment is required for aproperly co-ordinated information system to avail the necessary data in atimely, relevant and accurate manner. This is necessary for roll out of IFMS,IPPSand other upcoming initiatives. The system will require retooling as wellas enhancing the personnel and resource capacity for local research, statistics,demography, policy analysis, management and libraries/ documentation.

h) Local Economic Development: One of the objectives of the Governmentprogramme of Wealth- for -all is for every household to have the means toearn the minimum to meet basic needs. Decentralisation can be used as aneffective tool to achieve this vision. Local Government's role is envisaged inincreasing investment and productivity in agriculture, industry and servicesand rural transformation. Instead of focusing our energies on expanding theadministration, we should turn LGs into vehicles of increased production andwealth creation.

i) Training and Capacity Building: This is a continuous need for both thepolitical and technical officials. The local elections continue to produce highout-turn of new councillors. This shows the importance of preparedness andcontinuity in local training.

j) Urbanisation: Uganda is getting increasingly urbanized due to rural-urbanmigration. Factors for this are many, mainly to do with employment, andsocial-economic attractions in towns. Unfortunately, the towns are ill-equipped to meet the challenges of an increased population. Physicalplanning, urban service delivery, and urban management need to be tackledas a matter of urgency, together with an appropriate rural developmentstrategy. The Regional Centres, such as Mbale, Mbarara, Arua and Gulu needto be elevated to city status, so as to improve their planning and management.

k) Civic education and Sensitization: This will involve a deliberate move tocreate awareness about the decentralization policy and it must be acontinuous process nationally. More effort is required to mobilize thecommunity and sensitise them about decentralization and the civicobligations of everyday in planning, implementation as well as supervision,monitoring and evaluation of services rendered by the Local Authorities.Sensitization should go on hand in hand with adult literacy. This is partly the

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role of CSOs. Voter education is necessary and should be done in good time,instead of being done hurriedly towards the elections.

1) Crosscutting issues: These are important to the development of localdemocracy. Local Government's capacity to respond effectively to the issuesof gender, HIV/ AIDs, environment, disability, etc... needs to be continuouslybuilt and enhanced.

12. Conclusion

Given the background of a political history that was characterised by highlycentralised government, especially under the political party and militarydictatorships of post-independence era, Uganda was truly ripe fordecentralisation when the NRM took power. The decentralization policy,however, requires patience and participation of all the stakeholders, particularlythe ordinary citizens most affected by the policy. While Uganda has been giventhe credit of being one of the countries that have undertaken far reaching LGreforms, the current issues pose significant challenges that need to be carefullyexamined and managed by both policy makers and implementers. The suddenturn around and inconsistency on policy matters must be avoided. The policy ofdecentralization is at the crossroads and its strength will be tested by its ability topersist in changing political and economic environment.

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