GENDER MINISTRY IN SHOCK AUDIT STORM! Billions in Loans Unrecovered, Arrears Skyrocket, Migrant Workers Abandoned as Key Programmes Stall

KAMPALA — Uganda’s Ministry of Gender, Labour and Social Development, the very institution tasked with protecting vulnerable citizens and championing social justice, has been thrust into the spotlight after the Office of the Auditor General of Uganda uncovered a long list of troubling gaps ranging from ballooning debts and stalled programmes to unresolved complaints from migrant workers and billions in government funds yet to be recovered.

Aggrey David Kibenge is the Permanent Secretary. He has held this position since his deployment in September 2020.

The explosive findings in the Auditor General’s December 2025 report analsysed by Red Pepper paint a picture of a ministry struggling to keep control of massive social programmes designed to empower youth, women and persons with disabilities.

At the heart of the revelations is the sharp increase in receivables linked to government empowerment initiatives.

According to the audit, receivables increased by 4 percent, rising from UGX 241.93 billion to UGX 252.49 billion by June 30, 2025.

Auditors say the increase is largely due to more loans being issued to women and youth groups under government empowerment programmes.

However, the rising receivables are not necessarily good news.

Observers say the swelling figures reflect the growing pile of government funds yet to be repaid.

Meanwhile, the ministry’s financial headaches are compounded by a dramatic surge in domestic arrears.

The audit reveals that unpaid obligations ballooned by a staggering 176 percent, jumping from UGX 7.46 billion to UGX 20.58 billion.

The Auditor General warns that the escalating arrears could expose the ministry to legal battles.

“Domestic arrears increased by 176 percent from UGX 7.46Bn to UGX 20.58Bn thereby increasing the risk of litigation,” the report states.

Behind the financial figures lies a deeper structural problem: the failure to establish key institutions meant to strengthen labour governance in the country.

The audit notes that the National Labour Institute, which was supposed to be operational by June 30, 2025, was never established.

The reason is painfully simple — lack of funding.

“It was noted that the National Labour Institute which ought to have been in place by 30th June 2025 was not established due to lack of funding,” the Auditor General states.

Yet the financial mysteries do not end there.

Auditors also discovered a puzzling case involving UGX 826.63 million recovered from the Youth Livelihood Programme (YLP) and the Uganda Women Entrepreneurship Programme (UWEP).

The money was sitting in the Bank of Uganda, but investigators could not trace it back to any specific local government or beneficiary group.

“Receipts of UGX 826.63Mn in respect of recovery of YLP and UWEP funds in Bank of Uganda could not be tagged to any Local Government or individual group,” the report reveals.

For accountability experts, this raises uncomfortable questions about the tracking of public funds meant to uplift vulnerable communities.

Land management within the ministry has also raised eyebrows.

The Auditor General discovered that the ministry owns 67.63 acres of land that has never been formally titled.

Without a land title, the property remains vulnerable to encroachment or outright loss.

“The Ministry land measuring 67.63 acres was not titled exposing it to a risk of encroachment and loss,” the report warns.

Meanwhile, the ministry’s handling of complaints from migrant workers paints a troubling picture of overwhelmed systems and unresolved grievances.

Out of 1,012 complaints lodged by migrant workers during the financial year, only 171 were resolved.

That translates to a resolution rate of just 17 percent, leaving a staggering 841 cases — or 83 percent — unresolved.

For a ministry tasked with protecting Ugandans seeking employment abroad, critics say such a backlog raises serious concerns about oversight of recruitment agencies and labour export systems.

The financial challenges surrounding government empowerment programmes also appear far from resolved.

Under the Youth Livelihood Programme (YLP), auditors found that out of UGX 169.414 billion expected to be recovered from beneficiaries, only UGX 41.745 billion had been recovered.

That leaves UGX 127.669 billion — a massive 75 percent — still outstanding.

The Uganda Women Entrepreneurship Programme (UWEP) has performed slightly better but still faces serious recovery challenges.

Of the funds due for recovery, UGX 41.024 billion — representing 60 percent — was recovered, leaving UGX 26.595 billion, or 40 percent, still outstanding.

The report suggests that weak recovery mechanisms could be undermining the sustainability of programmes designed to economically empower vulnerable Ugandans.

Procurement practices at the ministry also came under scrutiny.

The Auditor General flagged non-compliance with reservation schemes, which are supposed to ensure fair participation of special interest groups in government procurement processes.

The violation contravenes Paragraph 2 of the Public Procurement and Disposal of Public Assets Authority Guideline Number 11 of 2024.

Auditors also highlighted multiple technical challenges affecting the government’s electronic procurement system, commonly known as the E-GP system.

Among the problems identified were weaknesses in oversight support, electronic submission processes, procurement planning, reporting systems and mechanisms designed to promote competition among bidders.

But perhaps the most shocking revelation concerns the massive funding gap affecting the ministry’s strategic plan.

Between the financial years 2020/2021 and 2024/2025, the ministry’s strategic plan estimated a funding requirement of UGX 12,571.34 billion.

However, only UGX 1,234.53 billion was actually provided.

That leaves a staggering funding gap of UGX 11,320.46 billion — representing over 90 percent of the planned budget.

For analysts, such a shortfall means many of the ministry’s social programmes were effectively operating on financial fumes.

The consequences are already visible in programme performance.

The audit assessed 20 outputs worth UGX 220.4 billion and discovered that only two outputs worth UGX 7.239 billion were fully implemented.

The majority — 26 outputs worth UGX 212.592 billion — were only partially implemented, while two outputs worth UGX 569 million could not even be assessed due to missing performance targets and indicators.

“This lack of performance indicators makes it difficult to assess whether the intended objectives were achieved,” the report notes.

Meanwhile, the labour export sector appears to be operating with dangerous loopholes.

The audit found that 16 recruitment agencies were operating without valid licences issued by the Ministry of Gender.

Such agencies are required by law to obtain official licences before sending Ugandans abroad for work.

Operating without licences raises fears that workers could be exposed to exploitation and trafficking risks.

In addition to the financial and administrative issues, the Auditor General also conducted value-for-money audits into two critical areas: the management of the National Special Grant for Persons with Disabilities and the management of remand homes.

Separate reports were issued detailing the findings of those investigations.

But the audit did not stop there.

The Auditor General also conducted a follow-up review of an earlier 2013 Value for Money audit that had examined the government’s efforts to achieve gender equality.

The findings of that follow-up review are equally troubling.

Out of 28 recommendations made in the 2013 report, only three — representing just 11 percent — were fully implemented.

Four recommendations were partially implemented, while a staggering 21 recommendations — or 75 percent — were never implemented at all.

“The overall progress in implementation of the recommendations of the 2013 Value for Money report by the Ministry was unsatisfactory,” the Auditor General concluded.

To its credit, the ministry has made some progress in promoting gender equality.

It developed the National Gender Mainstreaming Guidelines 2024, revised national gender priority indicators and played a role in ensuring the Equal Opportunities Commission is fully constituted and functional.

But auditors say critical gaps remain.

For example, there has been no training or proper supervision of Gender Focal Point Persons across local governments, a weakness that undermines gender mainstreaming at grassroots level.

The ministry has also failed to establish Gender Committees across government ministries, departments and local governments, a step considered essential for driving gender equality policies.

The legislative landscape is also lagging behind.

Critical pieces of legislation — including the Marriage and Divorce Bill, the Sexual Offences Bill, and the HIV/AIDS Prevention and Control Bill — remain unpassed by Parliament.

For the Auditor General, the message is clear.

“The recommendations made in the 2013 audit report were intended to improve gender equality and mainstreaming within government,” the report notes.

“However, most of these recommendations have remained unimplemented.”

The report warns that failure to implement the recommendations could worsen existing challenges and delay the achievement of gender equality goals across government institutions.

For a ministry tasked with protecting workers, empowering women and advancing social justice, the audit findings are a stark reminder that the road to reform may be far longer than previously imagined.

And as the unanswered questions pile up — from billions in unrecovered loans to unresolved migrant worker complaints — one thing is certain.

The Gender Ministry’s books may be balanced on paper.

But the problems beneath the surface are anything but balanced.

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