INSPECTORATEINSPECTORATE OFOF GOVERNMENTGOVERNMENT Final Report THE 3RD NATIONAL INTEGRITY SURVEY (NIS III) October 2008 INSPECTORATE OF GOVERNMENT Final Report THE 3RD NATIONAL INTEGRITY SURVEY (NIS III) October 2008 REEV CONSULT INTERNATIONAL APEX HOUSE NTINDA, PLOT 897 KIRA ROAD P.O. BOX 28224 KAMPALA UGANDA Tel: +256 41 287779/+256 772 40260 EMAIL: [email protected] ii INSPECTORATE OF GOVERNMENT THE 3RD NATIONAL INTEGRITY SURVEY (NIS III) ACKNOWLEDGEMENTS The consulting team of the National Integrity Survey (NIS III) is greatly indebted to all organizations and persons who assisted in the execution of the task. Special thanks go to Her Lordship, Lady Justice Faith Mwondha, the Inspector General of Government, for the tremendous assistance and her commitment to the exercise. We are grateful to members of the Steering Committee chaired by Bageya Waiswa, Secretary to the Inspectorate; Jossy Jules Rwereeza, the Director of Education and Prevention of Corruption. Other members included: Barbara Magezi Ndamira (World Bank), Joyce Ngaiza (Nertherlands Embassy), Dan Muwolobi (Irish Embassy), Charles Magara (Danish Embassy), Byron Twesigye (UBOS) and Sydney Asubo (Ag. DLA/IG). The consulting team would like to further extend its gratitude to the Technical Committee chaired by Jossy Jules Rwereeza with members comprising: Adrian Kiiza, Byron Twesigye, Smith Byakora, Christine Mugerwa, Julie Kasasa, Salome Mwanja, Catherine Sekandi, Dorothy Kabugho, Fabith Tugumusirize, Judith Katusiime, and Beatrice Ariko. The technical committee provided invaluable support through field monitoring and review of the draft report. We are also indebted to all the District Officials in the country notably Chairpersons, Resident District Commissioners, and Departmental Heads for their support to the consultants in the execution of the survey. The consulting team is grateful to the Chief Administrative Officers, who played a significant role in mobilizing public officials and provision of venues for FGDs. The support and cooperation of Private entrepreneurs and Non Governmental Organizations is equally appreciated. The consulting team is also thankful to all the Research Assistants who meticulously collected information from households, Public Institutions, and Private Enterprises across the regions. Last but not least the consulting team thanks the respondents who sacrificed their valuable time to furnish us with all the necessary information. Any possible errors and unquoted ideas are the responsibility of the Consulting Team. Augustus Nuwagaba TEAM LEADER iii iii INSPECTORATE OF GOVERNMENT THE 3RD NATIONAL INTEGRITY SURVEY (NIS III) CONTENTS Acknowledgements iii Executive Summary xiv 1 Introduction 21 1.1 Background 21 1.2 Synthesis of Corruption in a Historical Perspective 21 1.3 The Inspectorate of Government (IG) 2 Objectives of NIS III 2 Main Objective 2 Specific objectives of NIS III 2 1.4 Team Building 3 1.5 Developing Research Instruments 3 1.6 Preparation of the Inception Report 3 1.7 Recruitment and Training of Research Assistants 3 1.8 Organization of the report 4 2 Study Approach and Methodology 5 2.1 Introduction 5 2.2 Methodology 5 Household Survey 5 Private Enterprises Survey 6 Public Institutions Survey 6 Focus Group Discussions (FGD) 6 Survey Instruments 6 Data Collection 7 (a) Household Respondents 7 (c) Focus Group Discussions and Key Informants 7 (d) Secondary Sources of Data 7 Data Processing and Analysis 8 2.3 Limitations and Challenges of the 3rd National Integrity Survey 8 3 Findings of the Household Survey 11 3.1 Introduction 11 3.2 Household Respondent Profile 11 3.3 Awareness of the IG 12 Awareness about IG by Region 13 Awareness about IG by Rural/Urban Distribution 14 Source of Information about IG 14 3.4 Household Perceptions on Corruption and Quality of Public Service Delivery 15 Forms of Corruption most Prevalent in the Country 15 Main Reasons for the Prevalence of Corruption 17 Reporting cases of Corruption 18 How households pay bribes to public officials 21 Household experiences on payment for services 25 Household rating of quality of services provided by selected Public Institutions 25 iv iv INSPECTORATE OF GOVERNMENT THE 3RD NATIONAL INTEGRITY SURVEY (NIS III) 3.5 Perceptions on Success of Actions by Government to Fight Corruption 27 3.6 Key Learning Points 29 4 Findings of the Public Institutions Survey 31 4.1 Introduction 31 4.2 Respondent Profile 31 4.3 Human Resource Management 32 General Recruitment 32 Gender Consideration in Recruitment 34 Induction of Newly Recruited Employees 35 Performance Appraisals: 35 Disciplinary Measures and Handling of Appeals 36 4.4 Financial Management and Procurement 37 Financial Management 37 Public Procurement 39 4.5 Ranking of Forms of Corruption in Public Institutions 39 4.6 Ranking the Main Reasons for Corruption in Public Institutions 41 4.7 Reporting Corrupt Practices and Complaint Mechanisms 44 4.8 Rating Quality of Services in Selected Public Institutions 47 4.9 Rating Public Institutions by Levels of Integrity 49 4.10 Key Learning Points 52 5 Findings of the Private Enterprises Survey 54 5.1 Introduction 54 5.2 Respondents Distribution 54 5.3 Respondents Background Characteristics 52 5.4 Human Resource Management 56 General Recruitment 56 Gender and Recruitment 56 Performance Appraisals 57 Disciplinary Measures and Provision for Handling of Appeals 57 5.5 Financial Management and Procurement 58 Diversion of Funds 58 Reasons for Diversion of funds 58 Service for which Private Enterprises pay Bribes 59 Public Procurement 60 5.6 Rating of Corruption in Private Enterprises and NGOs 61 5.7 Main Reason for Corruption in Public Institutions as Perceived by Private Enterprises 59 5.8 Ranking Forms of Corruption in Public Institutions by Private Enterprises 63 5.9 Private Enterprises Perception of Government Action to Address Corruption 61 5.10 Private Entrepreneurs Perception of Public Officials’ demand for Bribes 62 5.11 Private Enterprises Perception of How Government Regards Corruption 64 5.12 Opinions by Private Entrepreneurs on how Government can Address Corruption in Public Institutions 65 5.13 Reporting and Complaint Systems by Private Enterprises 66 5.14 Rating Integrity in Public Institutions by Private Enterprises 68 5.15 Constraints to Investment in Uganda as Perceived by Private Enterprises 69 5.16 Key Learning Points 71 v v INSPECTORATE OF GOVERNMENT THE 3RD NATIONAL INTEGRITY SURVEY (NIS III) 6.0 Trend Analysis of Causes and Incidences of Corruption 73 6.1 Trends Analysis of NIS I (1998), NIS II (2003) and NIS III (2008) Results 74 6.2 Key Learning Points 80 7.0 The Anti-Corruption Strategy (2004-2007) 82 7.1 Introduction 82 7.2 Strengthening Enforcement of Anti-Corruption Initiatives 82 Achievements 82 Challenges 83 7.3 Strengthening the Coordination Function to Improve Effective Anti-Corruption Action and Facilitate Achievement of Objectives 84 Achievements 84 Challenges 84 7.4 Strengthening the Legislative Framework to address Corruption 85 Achievements 85 Challenges 86 7.5 Ensuring Increasingly Active Public Involvement in the Fight against Corruption 86 Achievements 86 7.6 Building Sustainable Systems and Institutional Capacities within Anti-Corruption Agencies to Address Key Bottlenecks that Hamper Effective Action 88 Achievements 88 Challenges 89 7.7 Enhancing and Sustaining Political Support at all levels in the Fight against Corruption 90 Achievements 90 Challenges 90 8.0 Assesment of Effectiveness of Measures to Reduce Incidences of Corruption 93 8.1 Introduction 93 8.2 Government Instituted Measures 93 8.3 Private Anti-Corruption Initiatives 109 8.4 International Best Practices in Fighting Corruption 113 8.5 Key Learning Points 115 9.0 Emerging Issues and Recommendations 117 9.1 Introduction 117 9.2 Prevalence of Corruption Incidences and Administrative Injustice in Public Service and Factors that account for their occurrence 118 9.3 Trends in Prevalence of Corruption 120 9.4 Challenges Facing Implementation of the Anti-Corruption Strategy and the Inspectorate of Government Corporate Plan 121 9.5 Assessment of the Effectiveness of the Measures to Reduce Incidences of Corruption 122 REFERENCES 124 ANNEXES 125 vi vi INSPECTORATE OF GOVERNMENT THE 3RD NATIONAL INTEGRITY SURVEY (NIS III) BOXES 3.1: Apac District: Corruption Involving Creating Psychological Fear to Extort Money from Individuals 17 3.2: Local Expressions of Corruption 18 3.3: Bundibugyo District: Failure to Report Corruption Due To Fear of Retribution 20 3.4: Wakiso District: Frustration of the Public in Seeking Services 23 3.5: Kabarole District: A Case of Connivance between the LCI Officials, the Police and Human Rights Commission to Silence a Case 24 3.6: Wakiso District: Case Study of Corruption in the Police 24 3.7: Wakiso District: Rationalization of Corruption in the Police Force 24 3.8: Key Learning Points 29 4.1: Bushenyi District: Corruption With In the Police 40 4.2: Bundibugyo District: Corruption Within The Town Council 40 4.3: Sembabule District: Bribery in Public Health Units 41 4.4: Kampala District: Corruption In Kampala City Council 41 4.5: Kibaale District: Corruption within the Public Hospital 41 4.6: Key Learning Points 52 5.1: Key Learning Points 71 6.1: Key Learning Points 79 8.1: Key Learning Points 115 vii vii INSPECTORATE OF GOVERNMENT THE 3RD NATIONAL INTEGRITY SURVEY (NIS III) TABLES 3.1 Household Socio-economic Background characteristics 11 3.2 Household Experiences on payments for Services 21 4.1 Distribution of Respondents According to Sectors 31