Uganda’s Finance Ministry under fire for alleged misuse of migrant workers funds

By Denis Byakatonda

Uganda’s Ministry of Finance is facing serious allegations of extorting migrant workers destined for Saudi Arabia and other Gulf Cooperation Council (GCC) countries. The ministry reportedly collects $30 per job order for domestic workers and $300 for male workers under the pretext of funding monitoring, follow-up, and support programs for Ugandan migrant workers. However, these funds are said to be diverted into the government’s consolidated fund, leaving migrant workers without the promised protections.

Broken Promises and Lack of Accountability

The late Permanent Secretary to the Treasury (PSST), Keith Muhakanizi, had pledged that 50% of the collected funds would be allocated to programs directly supporting migrant workers. This promise has not been fulfilled, and the funds continue to be collected without any tangible benefits for the workers.

Fatuma Buhita, Vice President of Migrant Workers Voice, has publicly demanded an explanation from the current PSST, Mr. Ramadan Goobi. She questioned, “If the purpose of its collection was to enhance our protection, then why would you mix it into other affairs?”

The embassy in Riyadh has been left to survive on peanuts which your ministry allocats for General duties and all the excuse there by the few officers in charge of Migrant Workers Welfare assistance and monitoring is lack of enough funds to sufficiently reach out to support our fellows in distress! This is disgusting and disheartening and sort of a challenge to those extorters now to explain where all our money for all years has been going!?

The lack of accountability has left many Ugandan workers vulnerable to exploitation in foreign countries. Reports indicate that these funds are not being used to address critical issues such as wage theft, contract substitution, and trafficking problems that have plagued Ugandan migrant workers in Saudi Arabia and other GCC nations for years.

Exploitation and Debt Bondage

The plight of Ugandan migrant workers is compounded by exorbitant recruitment fees charged by local agencies. Workers often pay thousands of dollars upfront or take loans at high interest rates to secure jobs abroad. Once deployed, many face exploitative working conditions, including delayed wages, contract violations, and abuse. Some workers report spending their entire first-year earnings repaying recruitment debts.

Despite bilateral agreements and updated regulations aimed at protecting migrant workers, enforcement remains weak both in Uganda and destination countries. The Ministry of Gender, Labour, and Social Development (MoGLSD) had introduced measures like bank guarantees from recruitment agencies to support distressed workers. However, governance issues and alleged embezzlement have rendered these safeguards ineffective.

Government’s Response

In response to growing complaints, Uganda’s government recently launched initiatives to document cases of distressed workers in the UAE and facilitate their repatriation. Ambassador Abbey Walusimbi, Senior Presidential Advisor on Diaspora Affairs, has been working with Ugandan embassies in the GCC to address these issues. He assured workers that President Museveni is committed to improving their welfare and exploring safer job opportunities abroad.

However, these efforts do not address the core issue: the misuse of funds collected from migrant workers. Critics argue that until transparency is enforced within the Ministry of Finance and other relevant bodies, such initiatives will remain inadequate.

Call for Reform

Migrant Workers’ Voice Civil society organizations and migrant rights advocates are calling for reforms to ensure ethical recruitment practices and proper use of funds meant for worker protection. They urge the government to;

1. Audit how funds collected from migrant workers are utilized.
2. Enforce stricter penalties against recruitment agencies involved in exploitation.
3. Strengthen bilateral agreements with destination countries to protect worker rights.
4. Respond to these allegations transparently if it is to restore trust among Ugandan citizens and safeguard the welfare of its migrant workforce.