REGULATION OF LABOUR EXTERNALIZATION BY MINISTRY OF GENDER, LABOUR, AND SOCIAL DEVELOPMENT (MoGLSD)

Transcription

1 T H E R E P U B L I C O F U G A OFFICE OF THE AUDITOR GENERAL info@oag.go.ug REGULATION OF LABOUR EXTERNALIZATION BY MINISTRY OF GENDER, LABOUR, AND SOCIAL DEVELOPMENT (MoGLSD) A REPORT BY THE AUDITOR GENERAL D E C E M B E R, N D A

2

3 THE REPUBLIC OF UGANDA VALUE FOR MONEY AUDIT ON THE REGULATION OF LABOUR EXTERNALIZATION BY MINISTRY OF GENDER, LABOUR, AND SOCIAL DEVELOPMENT (MoGLSD) A REPORT BY THE AUDITOR GENERAL DECEMBER, 2017

4 4

5 AUDITOR GENERAL AUDITOR GENERAL S MESSAGE 31st December 2017 The Rt. Hon. Speaker of Parliament Parliament of Uganda Kampala VALUE FOR MONEY AUDIT ON THE REGULATION OF LABOUR EXTERNALIZATION BY MINISTRY OF GENDER, LABOUR, AND SOCIAL DEVELOPMENT (MoGLSD) In accordance with Article 163 (3) of the Constitution, I hereby submit my report on the value for money audit undertaken on the regulation of Labour Externalization by Ministry of Gender, Labour, and Social Development (MoGLSD). My office intends to carry out a follow up at an appropriate time regarding actions taken in relation to the recommendations in this report. I would like to thank my staff who undertook this audit and the staff of Ministry of Gender, Labour, and Social Development for the assistance offered to the audit team during the period of audit. John F. S. Muwanga AUDITOR GENERAL 5

6 TABLE OF CONTENTS TABLE OF CONTENTS 6

7 TABLE OF CONTENTS LIST OF TABLES...ii LIST OF FIGURES...ii LIST OF ABBREVIATIONS... iii EXECUTIVE SUMMARY... iv CHAPTER ONE INTRODUCTION 1.1 Background To The Audit Motivation Description Of Audit Area Mandate and Legal Framework for Externalization of Labour Organisation Structure Funding Audit Objective Audit Questions Audit Scope... 5 CHAPTER TWO AUDIT METHODOLOGY 2.1 Sampling Data Collection Methods... 7 CHAPTER THREE SYSTEMS AND PROCESS DESCRIPTION 3.1 Roles And Responsibilities Of Key Players Process Description CHAPTER FOUR FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 4.1 Sensitisation and Awareness on the Externalization of Labour program i

8 TABLE OF CONTENTS 4.2 Licensing of recruitment agencies and accreditation of foreign principals Licencing of recruitment agencies Accreditation of foreign principals Monitoring and supervision of recruitment agency activities Grievance and complaints handling GLOSSARY APPENDICES Appendix i: Organogram Appendix ii: Documents Reviewed Appendix iii: Sites Visited Appendix iv: Interviews Conducted Appendix v: Showing Agencies Issued Licenses Bofore Submitting Bank Guarantees Appendix vi: Showing Agencies That Continued Transacting With Moglsd During The Period When Their Bank Guarantees Had Expired LIST OF TABLES Table 1: Showing Planned Monitoring Activities for FYs 2014/ / LIST OF FIGURES Figure 1: Showing the process of licensing recruitment agencies Figure 2: Showing ranges of fees (UGX) charged from 78 migrant workers interviewed.. 23 ii

9 LIST OF ABBREVIATIONS CIID DISO ISO MoFA MoGLSD MoIA RDC UAE UAERA UGX Criminal Intelligence and Investigations Directorate District Internal Security Officer Internal Security Organization Ministry of Foreign Affairs Ministry of Gender Labour and Social Development Ministry of Internal Affairs Resident District commissioner United Arab Emirates Uganda Association for External Recruitment Agencies Uganda Shillings iii

10 EXECUTIVE SUMMARY Labour Externalization program is a Government of Uganda strategic initiative intended to facilitate recruitment of Ugandan migrant workers to decent employment opportunities and promote the protection of their rights and welfare in destination countries. The programme is implemented under the Ministry of Gender, Labour and Social Development (MoGLSD) and is responsible for licensing and regulating private recruitment companies/agencies; and signing bilateral agreements on behalf of Uganda with countries interested in importing labour from Uganda. A report compiled by the Parliament of Uganda committee on gender and labour issues indicated that many of Uganda migrant workers in the Middle East have their travel documents confiscated and these are only returned after payment of huge sums of money to their recruiters. The report also noted that most of these workers are placed in jobs different from what they were promised; and, especially for the girls, forced into sex slavery, among other inhumane treatments. The Office of the Auditor General undertook an independent review to examine the extent to which the Ministry has implemented the measures put in place to facilitate recruitment of Ugandan migrant workers to decent employment opportunities and safeguard their welfare in destination countries. KEY FINDINGS Some achievements were noted under the Labour Externalization Program. For instance, MoGLSD had licensed 79 private recruitment agencies by the time of Audit (November 2017) and also facilitated recruitment of an estimated 70,000 Ugandan migrant workers to jobs in UAE, Saudi Arabia, Jordan, Bahrain, Oman, Qatar, Iraq, Somalia, Afghanistan and Mali. These jobs have enabled the migrant workers to acquire new skills and trainings and also contributed to the foreign exchange earnings for the country. The Ministry had also negotiated and signed bilateral labour agreements with the Kingdom of Saudi Arabia and Government of Jordan by November In spite of these achievements, the following areas for improvement were noted: 1. Sensitisation and awareness on the labour externalization program The Employment (Recruitment of Ugandan Migrant Workers Abroad) Regulations, 2005 and, the Guidelines on recruitment and placement of Ugandan migrant workers abroad, 2015 were not disseminated as planned. Key stakeholders central to the recruitment of migrant workers did not have copies of the Regulations and Guidelines and as such they had limited information on the laws and processes of recruitment and management of migrant workers. The planned dissemination of the revised regulations did not take place because they were still in draft form and were yet to be approved by top management at the Ministry. 2. Licensing of recruitment agencies The Ministry had licensed 79 recruitment agencies by November, However, there was no iv

11 evidence that the Ministry was sharing updated lists of licensed agencies with key stakeholders. Further still, MoGLSD had in some cases issued recruitment licenses and approved job orders for companies that did not have valid bank guarantees. It was also noted that the penalty for operating without a license was not deterrent. 3. Accreditation of foreign principals The Ministry had not accredited any foreign principal/ employer and yet they were approving manpower requests from these foreign principals/ employers. In addition, the ministry was not verifying the manpower requests to establish the existence of the employing person, and its capacity to hire workers at acceptable rates and desirable conditions. The ministry was weak in enforcing compliance and ensuring that the adequate due diligence is done. 4. Monitoring and supervision of recruitment agency activities Although the Ministry was supposed to conduct routine/regular inspection, spot inspections, and inspections before issuance of license or in case of transfer of office; only inspections before issuance of license and on transfer of office were done. This was attributed to the fact that the ministry had not allocated adequate resources in terms of manpower to conduct all the prescribed inspections. 5. Grievance and complaints handling It was observed that while there were a number of complaints at both the Ministry and the Missions, there was no proper documentation and tracking of complaints from the time they are raised to conclusion and feedback. Both the Ministry and the missions visited did not have complaints registers, designated desk to handle/receive migrant workers complaints, case files for investigation done, an established filing system, and a record of resolutions made on the cases reported. Grievances and complaints of migrant workers were not satisfactorily handled due to limited allocation of resources in terms of personnel and finances at both the ministry and the missions responsible. KEY RECOMMENDATIONS The ministry should adopt the following recommendations to address the identified issues. I. Sensitisation and awareness on labour externalization program Make a deliberate effort to ensure that the planned and budgeted awareness and sensitisation activities for FY 2017/18 are undertaken. Train and sensitise the district labour officers and use them as channels for creating public awareness in their localities through the free airtime given for government programmes at the local media stations. Fast track finalisation of the review process for The Employment (Recruitment of Ugandan Migrant Workers Abroad) Regulations and also put in place mechanisms for dissemination of all statutory instruments relating to Externalisation of Labour. II. Licencing of recruitment agencies Develop an efficient system to track compliance with licensing requirements; and validity of bank guarantees. Revise the existing laws governing Labour Externalization and make it deterrent to operate without a valid license. III. Accreditation of foreign principals Only approve manpower request from accredited foreign principals and also work closely with the Ministry of Foreign Affairs and Uganda missions to verify, validate information provided by foreign principals, and accredit the foreign principals in all labour receiving countries for all job categories v

12 IV. Monitoring and supervision of recruitment agency activities Review the staff establishment of the External Employment Services Unit and allocate additional manpower and other resources to enable it to undertake planned activities effectively. Liaise with Ministry of Foreign Affairs and strengthen the capacity of respective missions abroad in terms of manpower (labour attaches) and financial resources to facilitate monitoring of workers welfare. Emphasize and undertake routine and spot inspections as required. V. Grievance and complaints handling Fast track the establishment of officers responsible for handling complaints both at the Ministry and in all labour receiving countries. Set up a tracking system that monitors the recording, coding, investigation and resolution of all complaints raised by migrant workers. OVERALL AUDIT CONCLUSION In order to facilitate the recruitment of Ugandan migrant workers to decent employment opportunities, the Ministry of Gender, Labour and Social Development was expected to conduct sensitization and awareness activities; license recruitment agencies; accredit foreign principals; supervise and monitor operations of recruitment agencies; and put in place a mechanism to handle grievances arising out of inhumane treatment and exploitation of the workers. This responsibility is still hampered by lack of prioritization resulting in weaknesses in licensing, supervision and monitoring of activities of the current agencies. These weaknesses need to be addressed in order to promote the interests and well-being of the workers deployed overseas. vi

13 1 CHAPTER ONE CHAPTER ONE 1

14 CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE AUDIT Labour Externalization is a Government of Uganda strategic initiative intended to facilitate recruitment of Ugandan migrant workers to decent employment opportunities and promote the protection of their rights and welfare in destination countries. The programme is implemented under the Ministry of Gender, Labour and Social Development through the Department of Employment Services, which is responsible for licensing and regulating private recruitment companies/agencies and signing bilateral agreements on behalf of Uganda with countries interested in importing labour from Uganda. 1 Overseas employment is one of the major ways Uganda is integrated into the global economy to promote maximisation of the potential of the Ugandan labour force. Ugandans have been migrating to several countries abroad in search of employment opportunities. Through collaboration and licensing of private agencies/companies, Government has enabled many Ugandans obtain productive, fulfilling and creative work in several occupations, such as security guards, drivers, customer care and hospitality, sales persons, technicians and domestic workers 2. As of November, 2017, seventy nine (79) private recruitment companies/agencies were licensed and over 46,000 Ugandan migrant workers had accessed jobs in countries of Iraq, United Arab Emirates (UAE), South Sudan, Somalia, Saudi Arabia, Oman and Kuwait among others MOTIVATION The Ugandan economy has over time lacked the capacity to absorb all the country s graduates from universities and technical institutions into employment 4. Labour markets abroad provide employment opportunities for Ugandans in the short run as the country develops its capacity to generate sufficient jobs for its labour force. The United Nations estimated that 628,845 Ugandans lived and worked outside Uganda in 2013, of which 53 percent were women. 5 The migrant workers remittances have grown from US$406million 6 in 2006 to US$ 1.2 billion 7 in In addition to the remittances, the migrants have acquired new skills, 1 Website for the Ministry of Information and National Guidance. 2 Guidelines on recruitment and placement of Uganda migrant workers abroad,2015, Page 2 3 Migrant workers data, and Guidelines on recruitment and placement of Uganda migrant workers abroad,2015, Page 3 provided by MoGLSD during the Audit 4 A SHADOW REPORT TO United Nations Committee on Migrant Workers, Human Rights Network- Uganda (HURINET-U), Page 9 5 NDP II Pg. 66, Para BOU, Inward remittances Report,2008, Page i 7 BOU, Financial stability report, June, 2016, Page 9 2

15 methods of work, and experience. 8 A report compiled by the Parliament of Uganda committee on gender and labour issues indicated that many of Uganda migrant workers in the Middle East have their travel documents confiscated and these are only returned after payment of huge sums of money to their recruiters. The report also noted that most of these workers are placed in jobs different from what they were promised; and especially for the girls, forced into sex slavery, among other inhumane treatments. 9 Similarly, a report by the international Convention on the protection of rights of all migrant workers indicated that many Ugandan migrant workers have not acquired profitable employment opportunities in host countries. The report further indicates that the migrant working Ugandans, especially in the Middle East countries, have suffered economic exploitation, including sexual slavery and torture, among other ills. There is no clear policy to regulate the management of their benefits, for example, their social security benefit, portability and re-integration into Uganda s societies after they return. 10 The Immigration Department, Ministry of Internal Affairs, has intercepted several cases of irregular movements of Ugandans for purposes of employment abroad. Uganda Missions abroad have handled and reported some cases of abuse and exploitation 8 NDP II Pg. 66, Para Report of the Parliamentary committee on Gender Labour and Social Development, International Convention on the Protection of the rights of all Migrant workers and members of their families, 2015, Page 7 of migrant workers. The US Department of State notes that the Uganda Government does not fully meet the minimum standards for the elimination of trafficking. This has resulted in the increasing number of Ugandans recruited and trafficked by non-licensed agencies to Middle East countries. 11 Following the reports of hostility meted out and repeated outcries about inhumane treatment of Ugandan workers abroad, the government through the Ministry of Gender, Labour and Social Development (MoGLSD) imposed a ban on the externalization of domestic workers in January This ban was later lifted on 1st April 2017 after government signed bilateral agreements with Saudi Arabia, and Jordan; efforts for similar arrangements with other Middle East countries are on-going to aid Ugandans in accessing decent employment abroad. 12 It is for the above reasons that the Office of the Auditor General undertook an independent review to examine the extent to which the Ministry has implemented the measures put in place to facilitate the recruitment of Ugandan migrant workers to decent employment opportunities and safeguarding their welfare in destination countries. 1.3 DESCRIPTION OF AUDIT AREA Labour externalization is a Government initiative coordinated by the External Employment Unit under the Employment Services Department, Ministry of Gender, Labour and Social Development (MGLSD). The Programme is intended to guarantee the protection of the rights and promotion of welfare of Ugandan migrant workers abroad. The Ministry works in collaboration with the licensed employment agencies, Ministry of Internal Affairs, Ministry of Foreign Affairs, CIID, Interpol, Joint Intelligence Committee, workers representatives, migrant workers and local governments to facilitate the recruitment and management of Ugandan migrant workers countries/2016/ htm 12 New Vision April 3 rd Guidelines for recruitment and placement of Uganda migrant workers,

16 1.3.1 Mandate and Legal Framework for Externalization of Labour MoGLSD is mandated by the Employment (Recruitment of Ugandan Migrant Workers Abroad) Regulations, 2005 to facilitate employment and uphold the dignity and rights of Ugandan migrant workers 14. The Labour Externalization program is also guided by the Employment Act No.6, 2006; the Prevention of Trafficking in Person Act, 2009; the Uganda Citizenship and Immigration Control Act; the National Security Act; and the Guidelines on Recruitment and Placement of Uganda Migrant Workers Abroad, Vision MGLSD vision is A better standard of living, equity and social cohesion 15 Mission MGLSD mission is Promotion of gender equality, social protection and transformation of communities 16 Goal MGLSD goal is to Promote employment and productivity, positive cultural values, rights of vulnerable groups and gender responsive development 17 Objectives 18 The overall objective of the Labour Externalization program is to facilitate the recruitment and management of Ugandan migrant workers. The specific objectives include: To promote decent work and high quality placement and recruitment services for migrant workers abroad. To provide guidance to private recruitment companies/agencies and migrant workers on their obligations concerning the procedures for application for licenses, recruitment 14 Section 2, The Employment (Recruitment of Ugandan Migrant Workers Abroad) Regulations, Ministerial Policy statement, , Page, X 16 Ministerial Policy statement, , Page, X 17 Ministerial Policy statement, , Page, X 18 Guidelines on Recruitment and Placement of Uganda Migrant Workers Abroad, 2015,Page 4 and the roles of the different stakeholders. To promote ethical conduct by private recruitment companies/ agencies in their operations. To minimise the chances of Ugandan migrant workers going through illegal means To put in place a mechanism to remedy inhumane treatment and exploitation of the Ugandan migrant workers. Activities 19 Licensing private recruitment companies /agencies. Accreditation of foreign Principals. Verifying the job offer(s), employer (s) and location of the place of work. Authorising advertisement for oversees jobs Supervising, monitoring and inspecting activities of private recruitment companies/agencies. Ensuring applicants for work abroad are vetted. Facilitating recruitment/ selection of migrant workers. Liaising with Ugandan missions abroad to monitor the welfare of Ugandan migrant workers abroad. Consolidating reports from recruitment agencies and developing an annual migration report Organisation Structure The organisation structure for the Department of Employment services, which is responsible for Labour Externalization under MoGLSD, is attached in appendix Guidelines on Recruitment and Placement of Uganda Migrant Workers Abroad,2015 4

17 1.3.3 Funding There is no direct budget or funding for the Labour Externalization in the MoGLSD budget, however, the Ministry implements the program activities together with other administrative activities. 1.4 AUDIT OBJECTIVE To examine the extent to which the Ministry has implemented the measures put in place to facilitate the recruitment of Ugandan migrant workers to decent employment opportunities and safeguarding their welfare in destination countries AUDIT QUESTIONS In order to assess how the ministry has facilitated the recruitment of Ugandan migrant workers to decent employment opportunities and how it is safeguarding their welfare in destination countries, the following audit questions were formulated: To what extent has the ministry conducted awareness and sensitisation activities? Is the licencing of recruitment agencies and the accreditation of foreign principals done in accordance with the prescribed guidelines? To what extent has the ministry carried out the supervision and monitoring of the operations and activities of recruitment companies/ agencies? Has the ministry put in place a mechanism to remedy inhumane treatment of Ugandan migrant workers? 1.5 AUDIT SCOPE The audit focused on the regulation of labour externalization by the Ministry of Gender, Labour and Social Development (MoGLSD) over a period of three financial years from FY 2014/15 to FY 2016/17. 5

18 2 CHAPTER TWO CHAPTER TWO 6

19 CHAPTER TWO 2 AUDIT METHODOLOGY The audit was conducted in accordance with the International Organization of Supreme Audit Institutions (INTOSAI) Performance Auditing Standards and the Performance Auditing guidelines prescribed in the Office of the Auditor General (OAG) Value for Money (VFM) audit manual. The standards require that the audit be planned in a manner which ensures that an audit of high quality is carried out in an economic, efficient and effective way and in a timely manner. 2.1 SAMPLING All the seventy nine (79) licenced labour recruitment agencies were selected for assessment. Out of the 79, eleven (11) were randomly selected for inspections. Sixteen (16) local governments, namely, Tororo, Busia, Bugiri, Mbale, Palisa, Gulu, Lira, Kasese, Mbarara, Arua, Kabale, Mubende, Isingiro, Ntungamo, Soroti and Rakai were purposefully selected to include urban districts, remote districts and districts with gazetted entry and exit boarder points. Two labour receiving countries of Saudi Arabia and United Arab Emirates in the Middle East were also selected on the basis of having Ugandan Embassies. 2.2 DATA COLLECTION METHODS Audit reviewed documents, and carried out interviews to address the audit objective, the various methods of data collection and analysis used to address each audit question are detailed below: AQ1: To what extent has the ministry conducted awareness and sensitisation activities? The audit team reviewed documents at MoGLSD related to sensitisation and awareness activities. Interviews were also conducted with MoGLSD officers, key stakeholders in local governments to establish the extent of public awareness on externalisation of labour program. AQ2: Is licencing of recruitment agencies and accreditation of foreign principals done in accordance with the prescribed guidelines? The audit team reviewed documents at MoGLSD relating to licencing of labour recruitment agencies, and accreditation of foreign agents to establish if these processes were done in accordance with the set guidelines and regulations. Interviews were also conducted with officers representing MoGLSD, Ministry of Foreign Affairs (MoFA), Uganda Embassies in Saudi Arabia and United Arab Emirates to corroborate the information obtained from document review. 7

20 AQ3: To what extent has the ministry carried out supervision and monitoring of operations and activities of recruitment companies/ agencies? The audit team reviewed monitoring and supervision records by the Ministry and the missions in UAE and Saudi Arabia to examine the extent to which these activities were carried out on recruitment agency operations to ensure compliance with licensing terms. The team also interviewed staff at MoGLSD, the missions visited to establish how monitoring and supervision were conducted, challenges faced and opportunities for improvement. AQ4: Has the ministry put in place a mechanism to remedy inhumane treatment of Ugandan migrant workers? Interviews were also held with migrant workers, officials at selected missions, foreign employers and officers from MoGLSD to assess the extent to which the Ministry has put in place mechanisms to remedy inhumane treatment of Ugandan migrant workers. Documents relating to grievance and complaints handling were reviewed to assess how the mechanisms were implemented/ working. 8

21 3 CHAPTER THREE CHAPTER THREE 9

22 CHAPTER THREE 3 SYSTEMS AND PROCESS DESCRIPTION 3.1 ROLES AND RESPONSIBILITIES OF KEY PLAYERS Ministry of Gender, Labour and Social Development (MoGLSD) MoGLSD is the lead agency in implementation of Labour Externalization and coordinates the activities of all other stakeholders. The Ministry through the Department of Employment Services is responsible for; Raising awareness on the Statutory Instrument for Externalization of Labour, other labour laws and issues concerning trafficking related to employment among all parties; Licensing private recruitment companies /agencies to recruit and export Ugandan migrant workers abroad; Providing orientation to officials and staff of licensed companies/agencies and representatives of the foreign employers on the requirements, standards, laws and regulations in the recruitment and employment of Ugandan migrant workers; Verifying the job offer(s), employer (s) and location of the place of work with the foreign mission in the destination country; Developing a private recruitment company/ agency rating system; Keeping a list of private recruitment companies that are licensed and authorized to send Ugandans overseas for work and those that have been de-listed, suspended, revoked, cancelled, banned or have been refused a renewal of license; Inspecting, monitoring and oversight on the operations and activities of private recruitment companies/agencies within the country and in the destination country; Imposing sanctions on licensed local recruitment companies/ agencies for failure to cooperate in providing welfare assistance to migrant workers and against foreign principals/employers upon recommendation by the Embassies and other authorities; Developing a database for Uganda migrant labour abroad and recruitment companies. Ministry of Foreign Affairs (MoFA) The Ministry of Foreign Affairs is responsible for liaising with Uganda missions abroad to monitor the employers, the principal agencies and Uganda migrant workers in the destination country; verifying availability of jobs in the destination countries in collaboration with MoGLSD; establishing registers for Uganda migrant workers in the destination countries. Ministry of Internal Affairs (MoIA) The Ministry of Internal Affairs provides passports to migrant workers and collaborates with MoGLSD in monitoring irregular movements of migrants and in the identification of trafficking cases/victims. 10

23 Joint Intelligence Committee (JIC) The Joint Intelligence Committee (JIC) vets the private recruitment companies/ agencies before licensing and the selected migrant workers before departure; monitors activities of private recruitment companies and migrant workers during and after employment abroad; maintains a data bank for all private recruitment companies and personnel vetted. Local Governments The Local Governments assist the recruitment companies /agencies in the mobilization of interested migrant workers; provide recommendation letters for migrant workers for the procurement of passports; monitor the situation of the migrant workers when they come home on leave and irregular movements of migrants within the local governments. Communities are expected to keep vigilance and provide information on suspected and irregular movements of persons in their locations. The key officers involved at Local Government level include District Internal Security Officer (DISO), Community Development Officer (CDO), Labour Officers and Resident District Commissioner (RDC). CIID and Interpol CIID and Interpol investigate any suspected criminal and derogatory acts by agencies and trafficking in persons. Recruitment companies/agencies Recruitment companies/agencies provide Government with information on the global market demand for skills for migrant work and job orders; access to decent job opportunities by migrant workers abroad; advertising actual job vacancies; mobilizing and recruiting migrant workers; provision of comprehensive and accurate information to the migrant workers on the country of destination before recruitment and departure; assisting selected migrant workers in the procurement of passports and visas; managing and supervising the workers throughout the subsistence of the contract in the destination country; submission of documents on the employment contracts for verification to the Uganda Missions in the destination country; and regularly reporting on their activities. Private recruitment companies /agencies are also to form associations that share information and improve cooperation amongst themselves, develop a binding code of conduct and ethics and sensitise members; and collect information on high-risk agencies through regular screenings of their members, as well as new membership applications. Migrant workers Migrant workers provide the recruitment company /agency or employer with correct and true statements or certifications regarding their background information, skills, experience and qualifications; maintain a high level of productivity and abide by company rules as well as regulations; observe and respect the contract of employment, laws, customs, morals, traditions and practices of the country in which they work; refrain from committing acts, which are detrimental to national, employer or recruitment company interests during recruitment and employment; and uphold the requirements on remittance of earnings and to provide material support to their families. 3.2 PROCESS DESCRIPTION Licensing of recruitment companies/ agencies An organization intending to operate as a recruitment company/agency should pay a nonrefundable fee of UGX 100,000 and apply for a license from MoGLSD. The prospective private recruitment company/ agency in their application are required to demonstrate both human and financial capacity, and marketing capability to handle migrant labour. The applicants should then be trained and are required to pass two modules of the Certificate for Employment Agencies (CEA) test conducted by MoGLSD. The successful private 11

24 employment company/agency should then pay a bank guarantee of UGX 50 million before they are issued a biennial license. MoGLSD is supposed to assess the performance of the agencies using an agency rating system and this is supposed to provide a basis for evaluating applications for renewals of licenses. The Department should also maintain and disseminate to key stakeholders a list of recruitment companies/agencies that are licensed and authorized to send Ugandans overseas for work and those that have been de-listed, suspended, revoked, cancelled, banned or have been refused a renewal of license with full details of the agency s official representatives. This enables one to verify whether the private recruitment company/ agency they wish to consult is legitimate. Figure 1 below shows the process of licensing: Figure 1: Showing the process of licensing recruitment agencies Source: OAG analysis of guidelines on recruitment and placement of Uganda migrant workers abroad, 2015 Accreditation of Foreign Principal/Employer A foreign principal (employer) may be granted authority to recruit and hire Ugandan workers through a licensed agency for overseas employment. For the foreign principal/employer to be accredited, they should submit an application for accreditation to the Department of Employment Services, MoGLSD through a Ugandan licensed agency together with proof that she/he is in a sound financial position; has human resource policies of high standard; has a demonstrable commitment to training and employing Ugandans; and has good workplace practices including a history of compliance with all immigration and employment laws and policies in the country of employment. The principal/employer should submit a service agreement with the licensed agency; a master 12

25 employment contract of the direct employer or foreign placement agency containing the minimum requirements for contracts of employment of migrant workers; manpower request indicating the position and salary of the workers to be hired, a valid business license, registration certificate or equivalent document or proof of existence of project validated or certified by the issuing authority in the host country; and visa assurance or any equivalent document validated by the issuing authority for evaluation and accreditation. The Department of Employment Services, MoGLSD, through the Uganda Mission in the destination country is required to review, evaluate and verify the documents submitted by foreign principals. This is done to establish the existence of the employing person, company or project, its capability to hire workers at the acceptable rates, and with desirable conditions. The result of this review should be used by the Department to grant or decline accreditation to foreign principal/ employer. The ministry should then issue an accreditation certificate to the approved foreign principals. Inspection of private recruitment agencies The Officers from the Department of Employment Services are required to conduct inspections of the premises and facilities including pertinent documents before issuance of a license or in case of transfer of office to verify availability (lease or ownership) of office space of at least one hundred (100) square metres. Routine/regular inspections of offices and inspection of pre-departure orientation seminars conducted by recruitment agencies are also carried out to determine compliance with existing rules and regulations. The Department should also conduct spot inspections upon receipt of a complaint or report of violation of existing rules and regulations for migrant workers abroad. Selection of migrant workers The private recruitment company /agency should use its officials to advertise job openings, mobilize and recruit migrant workers within the local governments. The adverts may be for actual job vacancies or for manpower pooling. For manpower pooling, the advert should indicate in bold letters that it is for manpower pooling only and that no fees are collected from the applicants. The advertisements should clearly indicate the name, address and license number of the agency; work site of prospective principal/project; skill categories and qualification standards; and number of available positions. The agency is required to provide names of the districts where recruitment is to take place and the job adverts for approval by the Department of Employment Services. A copy of the authorisation to recruit should be copied to the Chief Administrative officers within the respective local governments. The agency should shortlist qualified candidates according to job qualifications required by the employer. All selected migrant workers should upon successful medical examination and vaccination in accordance with the requirements of job order and host country receive a written employment contract. The contract should describe the terms of employment in accordance with MoGLSD standards and guidelines. The migrant worker after signing and obtaining a copy of their own contract then sign a placement agreement that specifies the roles of the recruitment agency and obligations of the worker to the recruitment agency. Departure of migrant workers All the newly recruited migrant workers are required to fill the EE4 form before departure and submit it to the recruitment agency. The agency then compiles and submits all the filled forms, names, dates of departure, routes and points of exit of the migrant workers to the Department of Employment Services, MoGLSD copied to the chairperson JIC not later than a week after departure. MoGLSD then compiles and forwards the lists of migrant workers 13

26 to the Ministry of Foreign Affairs to distribute to the relevant Uganda Missions with a copy to the Director General External Security Organisation. Management of Ugandan Migrant workers abroad The private recruitment company/ agency are required to continue to manage and supervise the workers throughout the duration of the contract in the destination country. The agency should keep in touch with the workers they deploy through regular communication by s and telephone; having leaders among the migrant workers who act as a first point of reference; direct contact with migrant workers when they return to Uganda on vacation; and at least one physical visit per year. The agency is required to ensure that the workers have decent accommodation, transport to and from work sites, and that their gender needs are attended to. Foreign missions in the labour-receiving countries are to ensure that information on the Ugandan migrant workers relating to addresses of their employers, duration of stay, locations or work sites, residence and the respective recruiting agencies is documented and kept for appropriate supervision. The missions, in collaboration with the Department of Employment Services, MoGLSD establish resource centres or registers for migrant workers in each of the major labour receiving countries to monitor the migrant workers and also verify the employers and job orders. Migrant workers are also encouraged to form associations in their destination countries to ease coordination and integration. Grievance and complaints handling Any person dissatisfied with a decision or action of a recruitment agency or employer shall file a complaint in writing or by telephone against the agency or employer with the Department of Employment Services (MoGLSD) or the nearest Ugandan mission. The complainant shall carry evidence in support of the claim and complaint. Where money issues are involved, the complainant shall attach copies of receipts. On receipt of the complaint, the Department of Employment Services or Ugandan mission records the complaints in a register and an acknowledgement receipt is issued to the complainant. The department or Ugandan Mission shall mediate between parties but where it fails, the Mission shall forward the complaints to the respective government authorities/ministries responsible for labour. Grievances are then followed up by the respective mission and a grievance report is shared with the department. Upon resolution of the grievance, a grievance closure form is used to document action taken and consent of the complainant that the issue has been satisfactorily resolved. Reporting All recruitment companies/agencies are required to report to MoGLSD on the 5th day of the subsequent month on their activities by providing administrative records of their operations. The information is supposed to be processed and included in the Annual Migration Report as well as the Labour Report and used to gain a better picture of Uganda s performance on the global labour market. The reports are shared with the JIC (DGISO) and Deputy Director CIID in charge of Crime Intelligence, CMI and DGESO. A database on migrant workers abroad should be developed and established for the purposes of dissemination of information to the various stakeholders. The Ministries of Foreign Affairs, Internal Affairs, MoGLSD and the Uganda Bureau of Statistics are to carry out studies and surveys, respectively, on specific migration themes. 14

27 4 CHAPTER FOUR CHAPTER FOUR 15

28 CHAPTER FOUR 4 FINDINGS, CONCLUSIONS AND RECOMMENDATIONS Considerable achievements were noted under the Labour Externalization Program. The Ministry of Gender, Labour and Social Development had licensed 79 private recruitment agencies as of November, The Ministry, through the licensed agencies, had facilitated recruitment of an estimated 70,000 Ugandan migrant workers to jobs in UAE, Saudi Arabia, Jordan, Bahrain, Oman, Qatar, Iraq, Somalia, Afghanistan and Mali. The Uganda migrant workers have accessed a variety of jobs, such as: security guards, cleaners, drivers, hospitality workers, construction workers, domestic workers and sales persons. This has enabled them to acquire new skills and trainings and also contributed to the foreign exchange earnings for the country. MoGLSD had negotiated and signed bilateral labour agreements with the Kingdom of Saudi Arabia and Government of Jordan at the time of Audit (November 2017). In spite of these achievements the Audit identified areas for improvement as detailed below: 4.1 SENSITISATION AND AWARENESS ON THE EXTERNALIZATION OF LABOUR PROGRAM Guideline on recruitment and placement of Ugandan migrant workers abroad mandates MoGLSD to raise awareness of all Ugandans on matters relating to Labour Externalization such as the governing statutory instruments and laws, appropriate recruitment processes, and issues of trafficking related to employment, among others. Through a review of the MoGLSD ministerial policy statements for the FYs 2014/15, 2015/16 and 2016/17, the audit team observed that the Ministry had planned to revise The Employment (Recruitment of Ugandan Migrant Workers Abroad) Regulations, 2005 during the FY 2014/15 and disseminate 1,000 copies in each of the financial years 2014/15, 2015/16 and 2016/17 as part of awareness and sensitisation on matters relating to externalisation of labour. During the FY 2016/17, the Ministry had also planned to print and disseminate 200 copies of Guidelines on recruitment and placement of Ugandan migrant workers abroad, In addition, the Ministry had planned to periodically disseminate information on the Programme on externalisation of labour through the media such as radio/television talk shows, and print media. The Audit team established that regulations and Guidelines had not been disseminated as planned. There were also no scheduled activities for community awareness and sensitisation such as regional radio/television talk shows in the Ministry s plans. Furthermore, through interviews with District Internal Security Officers (DISOs), Resident 16 REGULATION OF LABOUR EXTERNALIZATION BY MINISTRY OF GENDER, LABOUR AND SOCIAL DEVELOPMENT (MoGLSD) A REPORT BY THE AUDITOR GENERAL

29 District Commissioners (RDCs), Labour Officers, Community Development Officers (CDOs), and Immigration Officers in the 16 Local Governments visited, the audit team noted that despite these officers being central to the recruitment of migrant workers in their respective districts, none of the officers interviewed had a copy of the Employment (Recruitment of Ugandan migrant workers abroad) Regulations, 2005 or the Guidelines on Recruitment and Placement of Uganda Migrant Workers Abroad, There was limited information relating to the governing laws and processes for recruitment and management of migrant workers, and as such the officers could not adequately provide the necessary guidance to the intending migrant workers. The Ministry had not built the capacity of district labour officers to aid in sensitisation and creating awareness on Externalisation of Labour in local governments even when they had planned and budgeted to sensitise the same officers in FY 2016/17. Through interviews with management and document review, audit established that the planned dissemination of the revised regulations did not take place because they were still in draft form and were yet to be approved by top management at the Ministry. As a result of limited sensitisation and awareness, many intending Ugandan migrant workers have been left susceptible to exploitation by traffickers and unlicensed recruitment agencies. Results from interviews with migrant workers in UAE and Saudi Arabia and analysis of online survey A CASE IN POINT: results conducted A number of females continued to pay to work as through housemaids abroad even when the labour this was supposed to be free under liaison licensed recruitment agencies. For example, officer the audit team interviewed fifteen (15) girls at the in Saudi boarder points of Busia and Malaba who had been Arabia intercepted from traffickers while in transit to work show as housemaids in Oman, and found that each of that 129 the girls had paid between UGX 400,000 and of the 384 UGX 1,400,000 to the traffickers. respondents had gone through unlicensed recruiters. Of the 129 respondents, sixteen (16) had paid between UGX 150,000 to UGX 5,000,000 to unlicensed recruiters and these were working as housemaids. REGULATION OF LABOUR EXTERNALIZATION BY MINISTRY OF GENDER, LABOUR AND SOCIAL DEVELOPMENT (MoGLSD) A REPORT BY THE AUDITOR GENERAL 17

30 Management Response i) The Ministry is a member of the Anti-Human Trafficking Taskforce. The Ministry has therefore worked hand in hand with the Office of the Coordinator for Anti Human Trafficking based at the Ministry of Internal Affairs to create awareness on the dangers of illicit labour export. ii) The Ministry has also in collaboration with the Uganda Association of External Recruitment Agencies undertaken a number of sensitization and awareness measures which include radio and TV talk shows, press conferences as well as press releases in the print media. iii) Training of Labour Officers on externalisation of labour will be undertaken as recommended. iv) The Employment (Recruitment of Ugandan Migrant Workers Abroad) Regulations, 2005 are accessible by Public Officers from the Ministry and ILO websites. v) The proposed Revised Employment (Recruitment of Ugandan Migrant Workers Abroad) Regulations, 2005 are under consideration by Top Policy Management. Audit Comment Whereas the ministry indicated that they had conducted sensitization and awareness campaigns in collaboration with UAERA, there was no evidence availed by the ministry to confirm this. Recommendations The Ministry should make a deliberate effort to ensure that planned and budgeted awareness and sensitisation activities for FY 2017/18 are undertaken. This should be done in the various local languages in the different regions. MoGLSD should train and sensitise the district labour officers and use them as channels for creating public awareness in their localities through the free airtime 20 given for government programmes at the local media stations. MoGLSD should fast track the finalisation of the review process for The Employment (Recruitment of Ugandan Migrant Workers Abroad) Regulations and also put in place mechanisms for dissemination of all statutory instruments relating to Externalisation of Labour. 4.2 LICENSING OF RECRUITMENT AGENCIES AND ACCREDITATION OF FOREIGN PRINCIPALS Licencing of recruitment agencies Regulation 4 of the Employment (Recruitment of Ugandan Migrant Workers Abroad) Regulations, 2005 states that a person shall not transact business in Uganda as a recruitment agency without a valid license. Guideline (ii) requires MoGLSD to license private recruitment companies/ agencies with the objective of promoting ethical conduct in their operations. For purposes of licensing, the requirements are specified under Guideline 7.1 and 7.2 which include, among others, Bank guarantee of UGX 50 million, passing a test of two modules for the Certificate for Employment Agencies (CEA) conducted by MoGLSD, and specific professional experience in management of worker issues. Through a review of recruitment agency files kept at the MoGLSD, the audit team established that the Ministry had licensed 79 recruitment agencies by November, There was, however, no evidence that the Ministry was sharing updated lists of licensed agencies authorised to recruit migrant labour (with information on licensed agencies, their addresses 20 Directive by the Minister for Information and National Guidance, during the National Broadcasters Forum, March 18,

31 and possibly the expiration date of the license) with key stakeholders such as line ministries, social partners, Civil Society Organizations and local governments. Out of 79 licensed agencies, 30 agency files were reviewed, and the audit team noted that 15 companies had been issued with recruitment licenses before they presented valid bank guarantees (Appendix V). In addition, the Ministry continued to process and approve documents such as job orders and vetting lists for 7 recruitment companies during periods when their Bank guarantees had expired (Appendix VI). The audit team attributed the continued processing of documents for agencies with expired bank guarantees to absence of an efficient system for tracking the validity of bank guarantees and the licenses on files. Licensing and conducting business with companies with no bank guarantees implies that the Ministry would not have any fallback position should there be unsettled financial claims against the private recruitment agencies. Further still, through interviews with migrant workers in UAE and online survey in Saudi Arabia, there was indications of agencies operating without licenses. For example, 209 out of the 383 respondents were recruited by unlicensed companies and individuals since these agencies were not on the list of agencies recognised by MoGLSD. The audit team noted that the penalty for operating without a valid license is 3 months imprisonment which is not punitive enough to deter illegal recruitment. As such, many Ugandan migrant workers have continued to be recruited by unlicensed agencies and individuals thereby exposing them to all forms of exploitation. In addition, interviews with Ministry staff and review of agency files revealed that the Ministry was neither training nor subjecting the applicants for licenses to the two module test for Certification of Employment Agencies. For the period under review, the Ministry had not planned and budgeted for this activity. Without such training, the capacity and knowledge of the applicants to manage and operate private recruitment agencies is not enhanced. Management Response i) There is no formal training conducted where directors of companies receive certificates. However, the directors are taken through the regulations and guidelines highlighting their obligations and what are expected of them. The directors also submit an undertaking to that effect. ii) Currently, all submissions from recruitment companies for job order approval or vetting of candidates must indicate the expiry date of the bank guarantee. The Ministry is therefore able to track the expiry dates of bank guarantees. Furthermore, an online document processing is being developed. This will make tracking of the validity of bank guarantees more robust. Recommendations The Ministry should develop an efficient system to track compliance with licensing requirements and also validity of licenses and bank guarantees. Development of the online document processing system is a step in the right direction. As the guideline requires, the Ministry should plan and budget for training of applicants for licensing with the aim of enhancing their capacity and knowledge in managing the operations of private recruitment agencies. The Ministry should revise the existing laws governing Labour Externalization and make it more punitive to deter illegal recruitment of Ugandan migrant workers Accreditation of foreign principals All foreign principals/employers recruiting Ugandan migrant workers through a Uganda licenced 19

32 agency should be granted authority by MoGLSD. 21 MoGLSD, through the Ugandan mission in the respective country is required to review and verify the documents submitted by foreign principals, including the employment contract of Uganda nationals, so as to establish the existence of the employing person, company or project; its capability to hire workers at the acceptable rates, and with desirable conditions, in conformity with the minimum standards prescribed by the Statutory Instrument on Externalisation of Labour taking into account the labour laws and legislation of the host country. 22 The interviews held with officers in the Ugandan missions of UAE and Saudi Arabia and MoGLSD, and the review of recruitment agency files at MoGLSD revealed that, the ministry had not accredited any foreign principal/ employer at the time of Audit (November 2017). The ministry was approving manpower requests from foreign principals that had not been accredited. In addition, the ministry was not verifying details of foreign employers to establish the existence of the employing person, company or project; its capability to hire workers at the acceptable rates, and at desirable conditions prior to approval of manpower requests. From the analysis done on the deployment data for fifteen (15) licensed recruitment agencies submitted by the agencies to MoGLSD, the audit team noted that their total deployments were spread across 195 foreign companies who were not accredited. MoGLSD, in partnership with Uganda Association of External Recruitment Agencies (UAERA), was in the process of engaging labour liaison services at the Ugandan mission in Saudi Arabia to verify information provided by foreign principals for purposes of accreditation and approval of job orders from agencies under the jurisdiction of the Mission. The audit team attributed the non-accreditation of foreign principals/employers to failure by MoGLSD to enforce compliance and ensure that adequate due diligence is done in the destination countries. Failure to accredit foreign principals/ employers has exposed Ugandan migrant workers to harsh working and living conditions, such as low and non-payment of their salaries, differing tasks and terms (food, medical, working hours) from those specified in the contracts approved by MoGLSD. For instance, through interviews with migrant workers in the United Arab Emirates who had gone through licensed agencies, audit team found that 36 out of 66 respondents were working under employment terms different from the ones approved and signed in Uganda. Management Response i) Verification of companies in the receiving countries by our Missions abroad started in November 2017 with countries of Jordan and Saudi Arabia with which Uganda has concluded bilateral labour Agreements. ii) Currently no employer from Saudi Arabia and Jordan who has not been accredited and verified can recruit workers from Uganda. Verification of job orders by missions will be extended subsequently to other foreign missions. Audit Response Extending this intervention to other labour receiving countries would be a step in the right direction. Recommendation The Ministry should only approve manpower request from accredited foreign principals and also work closely with the Ministry of Foreign Affairs and Uganda missions to verify, validate 21 Guideline 8 on recruitment and placement of Ugandan migrant workers abroad, Guideline (v) on recruitment and placement of Ugandan migrant workers abroad,

33 information provided by foreign principals, and accredit the foreign principals in all labour receiving countries for all job categories. 4.3 MONITORING AND SUPERVISION OF RECRUITMENT AGENCY ACTIVITIES The ministry is required to monitor and oversee the operations and activities of private recruitment companies/ agencies 23 to ensure compliance with the terms and conditions of the license. Through document review and interviews with Ministry staff, the audit team noted that although the Ministry was supposed to conduct routine/regular inspection, spot inspections, and inspections before issuance of license or in case of transfer of office 24 ; the Ministry was only conducting inspections before issuance of license and on transfer of office. Whereas the Ministry planned and budgeted (Table 1 below refers) to monitor activities of 30 private recruitment and employment agencies in each of the three years under review and also indicated in their annual budget performance report FY 2016/17 to have inspected 35 agencies to enhance compliance with regulations, there was no evidence on file in the form of routine or spot inspection/ monitoring reports. In addition, despite the numerous complaints received at the Ministry from migrant workers ranging from unauthorized manpower pooling, confiscation of travel documents, refusal to refund paid fees, and un-authorized job changes, among others, there was no record of any spot inspections done. Table 1: Showing Planned Monitoring Activities for FYs 2014/ /17 FY Planned Output as per Approved Budget Approved Budget UGX ( 000) 2014/ / /17 30 Private Recruitment and Employment agencies activities monitored and 4 follow-up visits to monitor working conditions of Ugandan migrant workers 30 Private Recruitment and Employment agencies activities monitored and 4 follow-up visits to monitor working conditions of Ugandan migrant workers 30 Private Recruitment and Employment agencies activities monitored and 4 follow-up visits to monitor working conditions of Ugandan migrant workers 227, , ,770 Total 683,330 Source: OAG analysis of MPS for MoGLSD The audit team also noted that the Ministry did not have adequate representation in Local Governments to aid in monitoring the activities of the licensed private recruitment agencies. Part III of the Employment Act, 2006 limits the jurisdiction and powers of carrying out labour inspections in local governments to the substantive District Labour Officers. Information obtained from the Ministry however reveals that only thirty six (36) out of the 111 districts 23 Guideline ix on recruitment and placement of Ugandan migrant workers abroad, Guideline 11.2 on recruitment and placement of Ugandan migrant workers abroad,

34 country wide had substantive Labour Officers. This means that there is no one who monitors the operations of recruitment agencies in the remaining 75 districts. The inadequate monitoring and inspection was attributed to the fact that the MoGLSD had not allocated adequate resources in terms of manpower to conduct inspections of recruitment agencies. As at 30th October, 2017, the Ministry had designated only two (2) technical officers to handle monitoring and inspections of licensed agencies (79 at the time); conduct awareness and sensitization activities; handle complaints of migrant workers; and process licensing of recruitment agencies and accreditation of foreign principals. The inability of the Ministry to conduct the necessary monitoring and supervision of private recruitment agencies and their operations has led to the following;- Failure to develop an agency rating system The Ministry had not developed an agency rating system as required under guideline which would provide a guide for assessing performance since renewal of licenses was supposed to have been based on performance. Publication of unapproved job adverts Most of the adverts were run prior to approval by MoGLSD. Consequently, a number of job adverts seen and heard in the media during the period of audit (May to November 2017) did not fully comply with set parameters in the regulations; for example, they did not specify the number of available positions, prospective work site, name and accreditation number of Foreign Principal among other requirements as stipulated in the Regulations. Inadequate orientation of Ugandan migrant workers MoGLSD did not have a standard pre-departure orientation manual for all categories of workers during the period under review. However, in the FY 2017/18, the ministry developed a manual for training of housemaids and approved 15 firms to conduct the trainings; the trainings were ongoing by the time of audit. Results of an online survey conducted by the labour liaison office at the mission in Saudi Arabia and interviews with migrant workers in UAE, the audit team found that 116 of the 187 respondents who had been recruited by licensed agencies did not receive any orientation prior to departure. The other 71 respondents who had received pre-departure orientation indicated that it had only lasted for a maximum of one day. For the period under review, there were no copies of certificates on file as evidence for pre-departure orientation training for the different job categories for all the 30 agencies reviewed. Unauthorized manpower pooling Recruitment agencies have continuously registered prospective migrant workers (manpower pooling) without prior approval from the Ministry. In addition, the agencies were collecting fees from the applicants contrary to the Guidelines. Nine (9) of the twelve (12) private recruitment agencies visited were carrying out manpower pooling even though there were no approvals from the MoGLSD on their files. The audit team scrutinized the recruitment database for one of the nine (9) agencies and found that 6,542 prospective migrant workers had been registered without readily available jobs and a minimum of 50,000 shillings had been collected from each applicant. Agencies charging unauthorized/ illegal fees Regulation 29 states that recruitment agencies shall only charge fees prescribed by the Ministry. Through interviews with migrant workers in UAE, the audit team noted that of the 22

35 81 respondents, 78 respondents had paid fees in excess of the 50,000 shillings prescribed in the regulations. There was no evidence on file to show that the excess fees were approved by the Ministry. The Figure 2 below shows the range and distribution of amounts paid by the respondents; Figure 2: Showing ranges of fees (UGX) charged from 78 migrant workers interviewed Source: OAG analysis of fees paid by respondents in UAE From the figure above, majority (67%) of the migrant workers had been charged between UGX 2.5 million and UGX 5 million. It was further noted that workers were paying differing amounts for similar jobs through the same recruitment agency. For instance nine (9) cleaners interviewed who were recruited by the same agency in Uganda and were working for the same foreign employer in UAE had paid differing amounts ranging from UGX 3.5 million to UGX 5 million. Irregular reporting Recruitment agencies were not regularly preparing and submitting all the required reports by the 5th day of the subsequent month as required under guideline 30. Twenty six (26) out of the thirty (30) agencies reviewed had no monthly reports on file while the four (4) had some reports filed. The Ministry therefore could not ably prepare the Annual Migration Report as well as the Labour Report and as such the actual number of Ugandan migrant workers and their foreign exchange earnings could not be established. Irregular deployment of Ugandan migrant workers in destination countries A number of Ugandan migrant workers were deployed to jobs, destination countries and employers; and also subjected to terms different from what they signed for before departure. Through interviews with 81 migrant workers in UAE, the following was noted: - 27 were deployed to jobs different from those they applied for and approved by MoGLSD were receiving less salary than what they had signed up for prior to departure were not receiving meals from their employers contrary to the approved terms of their employment were not receiving free medical services contrary to the approved terms of their employment. Using deployment data provided by recruitment agencies to the Ministry, audit validated deployments in UAE (preferred destination for Ugandan migrant workers) using online migrant worker registration system by the Ministry of Human Resources and Emiratisation (UAE). Through the validation, the audit team found that of the 6,800 migrant workers recorded 23

36 as deployed and working in UAE, only 4,668 were registered in UAE immigration system. This implies that the remaining 2,133 were either deployed in other countries without prior approval by MoGLSD or were working in UAE illegally. The audit team further analysed job orders and powers of attorney for nine (9) recruitment agencies and noted that while the agencies had deployments spread across 166 foreign companies, the Ministry had only approved job orders and powers of attorney of 83 foreign companies. Confiscation of travel documents. All the migrant workers interviewed in UAE and Saudi Arabia had their passports confiscated from them by their employers at the time of arrival. This is a violation of the workers rights as it restricts the movement of workers within and out of the destination country. Trade of Housemaids. Through interviews with 17 former housemaids in Saudi Arabia and UAE, audit team noted that the girls were bought by their employers from housemaid markets. Upon purchase the girls are then treated as property by the buyers and can be sold to another party as and when the employer wishes without consent from the girls. This practice is a reflection of modern day slavery. Through analysis of the results of the online survey, the audit team also noted that 189 (62.6%) of 302 respondents were hired out by their employers or taken for extra work at the employers relatives without their consent and at no extra pay. Physical & sexual abuse. Of the 91 migrant workers who submitted complaints to the Ugandan mission in UAE, 40 had been physically abused by their employers or members of their households and 3 of these had been sexually abused. Results of the online survey indicated that 29 of the 133 house maids who responded to the question about physical abuse had been physically assaulted. It was further noted that three (3) out of the 17 housemaids interviewed were victims of sexual abuse. Management Response i) Limited monitoring and supervision of recruitment agencies is caused by inadequate resources both human and financial. ii) The Externalization Unit has only two officers. Besides, the structure of the Department does not provide for a Data Entry Clerk. This makes collection and analysis of data a challenge. iii) Promotion and protection of the rights of migrant workers abroad requires the cooperation of the Government of the recipient country. With the signing of the Bilateral Labour Agreements with Jordan and Saudi Arabia, and intensive pre-departure orientation and training all the issues raised above should be addressed. The two Bilateral Labour Agreements have clear provisions of promotion of rights of Ugandan migrant workers. The agreements also establish a joint monitoring mechanism. Negotiations with Qatar were finalized and the agreement will be signed soon. iv) The integrated online Document processing system which is planned for final deployment in January 2018 will provide a quick platform for real time data capture and analysis. The issue of data collection and analysis will therefore be a problem of the past. v) The Ministry is going to come up with the rating criteria by March vi) On the fees charged by recruitment agencies, there are some engagements going on to streamline the fees structure. 24

37 Recommendations MoGLSD should: Review the staff establishment of the External Employment Services Unit and allocate additional manpower and other resources to enable it effectively undertake planned activities. Fast track the development of the Integrated Management Information System to facilitate proper monitoring. The system should ease the coordination and sharing information on migrant workers with foreign missions to facilitate monitoring of workers welfare. Liaise with Ministry of Foreign Affairs and strengthen the capacity of respective missions abroad in terms of manpower (labour attaches) and financial resources to facilitate monitoring of workers welfare. Ensure that negotiations take place for all labour receiving countries and bilateral agreements for migrant labour are signed and also start accreditation of foreign employers to get their goodwill in safeguarding welfare of Ugandan migrant workers. Enforce penalties for nonadherence to the terms of licensing. Emphasize and undertake routine and spot inspections as required. 4.4 GRIEVANCE AND COMPLAINTS HANDLING Any person dissatisfied with the recruitment agency or foreign employer is required to file a complaint in writing or by telephone against the agency or employer with MoGLSD or the nearest Ugandan Mission. The procedure requires the Ministry or Ugandan mission to conduct investigation, mediate between the parties and where necessary forward the case to relevant government authorities. 25 It was observed that while there were a number of complaints at both the Ministry and the Missions, there was no proper documentation and tracking of complaints from the time they are raised to conclusion and feedback. Both the Ministry and the missions visited did not have complaints registers, designated desk to handle/receive migrant workers complaints, case files for investigation done, an established filing system, and a record of resolutions made on the cases reported. All the 81 migrant workers interviewed in UAE and Saudi Arabia had not been provided with contacts for MoGLSD and their respective Ugandan missions to register their complaints when necessary. The missions informed the audit team that they had on several occasions due to budgetary constraints, failed to rescue Ugandan migrant workers who had called them for help after escaping from their employers and instead referred them to the nearest police station for safe custody. There were also no reception centres and shelters for run-away migrant workers at both missions visited. The mission in Saudi Arabia had received and accommodated 264 run-away housemaids at the embassy premises between November, 2015 and November, During the FY 2016/17, the embassies of Saudi Arabia and UAE had each spent over USD 50,000 on food, medicine and emergency air tickets for run-away housemaids. The missions had to mobilise these funds from staff contributions and diversion of funds from other activities. Through interviews with officers at the mission in Saudi Arabia and MoGLSD staff, the audit team noted that the Ministry together with UAERA were in advanced stages of setting up labour liaison services at the Ugandan mission in Saudi Arabia, among other things, to assist in registering migrant workers complaints, carry out investigations, mediate, report on the resolutions reached and where necessary assist in the rescue and repatriation process. 25 Regulation 84 of the Recruitment of Ugandan Migrant workers abroad, 2005 and guideline 25 of the Recruitment and placement of Ugandan migrant workers,

38 Grievances and complaints of migrant workers were not satisfactorily handled due to limited allocation of resources in terms of personnel and finances at both the ministry and the missions responsible. The Ministry has also not prioritized setting up a desk and systems for handling and tracking migrant workers complaints at its premises despite the growing number of migrant workers and their complaints. This has resulted in disgruntled workers airing out their grievances through social media thereby portraying lack of interest from government agencies in resolving their matters. Without gazetted desks, resources and a well-defined functioning system for handling migrant workers complaints both at MoGLSD and missions in Labour receiving countries, government cannot ably track all complaints raised, carry out investigations for resolution and addressing the causes. Management Response i) An officer responsible for handling complaints is going to be identified and assigned; ii) The Uganda Association of External Recruitment Agencies has established a Monitoring and Complaints handling Office in Saudi Arabia. Offices will be gradually rolled out in other countries. This Office has successfully handled several complaints of Ugandan migrant workers. iii) Furthermore, the Uganda Association of External Recruitment Agencies has established a Reception Centre at Entebbe on the advice of the Ministry of Gender and Social Development. Other Reception Centres will be established in Riyadh, Jeddah and Dammam in Saudi Arabia. iv) The Reception Centres in Saudi Arabia will be used for receiving and offering temporary accommodation to workers under distress. In addition the Centres will offer appropriate psychological and social support to workers as and when required. Audit Comment: While the Uganda Association of External Recruitment Agencies has established a Monitoring and Complaints handling Office in Saudi Arabia, the Ministry should regularize this arrangement bearing in mind the independence of the established office. Recommendations MoGLSD should: Fast track the establishment of officers responsible for handling complaints both at the Ministry and in all labour receiving countries. Set up a tracking system that monitors the recording, coding, investigation and resolution of all complaints raised by migrant workers. OVERALL AUDIT CONCLUSION In order to facilitate the recruitment of Ugandan migrant workers to decent employment opportunities, the Ministry of Gender, Labour and Social Development was expected to conduct sensitization and awareness activities; license recruitment agencies; accredit foreign principals; supervise and monitor operations of recruitment agencies; and put in place a mechanism to handle grievances arising out of inhumane treatment and exploitation of the workers. This responsibility is still hampered by lack of prioritization resulting in weaknesses in licensing, supervision and monitoring of activities of the current agencies. These weaknesses need to be addressed in order to promote the interests and well-being of the workers deployed overseas. 26

39 GLOSSARY Accreditation: Refers to the grant of authority to a foreign principal to recruit and hire Ugandan workers through a licensed agency for overseas employment. Decent Work: Decent work entails certain basic conditions at work: a decent wage, working hours compensation for injury arising out of work, social security annual leave, accommodation, medical treatment and food. It refrains from exploitation, treatment of migrant workers as commodities and accord them greater human dignity and protection. Destination country: A country where the migrant worker is to be engaged, is engaged or has been engaged in a remunerated activity at the contractor s facility. Domestic worker: An individual whose nationality or country of origin is the same as that of the country in which the employer s facility is located. Foreign principal: Refers to the employer in the destination country or foreign placement agency hiring or engaging Ugandan workers for overseas employment through a licensed private recruitment agency. Migrant worker: A person who is to be engaged, is engaged, or has been engaged in a remunerated activity in a state of which he or she is not a citizen. Recruitment: Refers to the process of attracting, screening, selecting, and on boarding a qualified person for a job, provided by an employer in another territory and the preparation for their departure. Recruitment agencies: Partnerships or companies that are duly licensed to recruit and deploy Ugandan migrant workers for employment abroad. 27

40 APPENDIX 1: ORGANOGRAM Permanent Secretary, MGLSD Director, Gender & Community Development Director, Labour, Employment, Occupational Finance and Administration Director, Social Protection Commissioner, Occupational Safety and Health Commissioner, Employment Services Commissioner, Labour Industrial Relations & Assistant Commissioner, Employment Services Principal Labour Officer, Employment Services Principal Labour Officer, Counselling &Guidance Support Staff: Personal Secretary, Steno-Secretary, Driver, Office Attendant Principal Labour Officer, Research & Statistics Senior Labour Officer Senior Labour Officer 28

41 APPENDIX II: DOCUMENTS REVIEWED Document Reviewed Implementing Agency Purpose Employment (Recruitment of Ugandan Migrant Workers Abroad) Regulations 2005 Guidelines on Recruitment and Placement of Uganda Migrant Workers Abroad Ministerial Policy Statement for FY2015/16 for Sector 10 Social Development, April 2015 A Shadow Report to United Nations Committee on Migrant Workers, Human Rights Network-Uganda (HURINET-U) Report of the Parliamentary committee of Gender Labour and Social Development, 2013 International Convention on the Protection of the rights of all Migrant workers and members of their families, 2015, Employment Act 2006 The Prevention of Trafficking in Persons Act Migrant Worker records Ministry of Gender, Labour and Social Development Ministry of Gender, Labour and Social Development Ministry of Gender, Labour and Social Development Ministry of Gender, Labour and Social Development Ministry of Gender, Labour and Social Development Ministry of Gender, Labour and Social Development Ministry of Gender, Labour and Social Development Ministry of Internal Affairs, Immigration Embassy of Uganda in Saudi Arabia, UAE To obtain an understanding of the implementation processes of the Labour externalization program and the key stakeholders/players involved. To obtain an understanding of the implementation processes of the Labour externalization program and the key stakeholders/players involved. To know how much was budgeted for and the planned activities of the Labour externalization program. To obtain an understanding why unemployed youths in Uganda migrate. To establish the risks that were identified by the committee during their investigations in the externalization of Labour To establish the internationally acceptable provisions on protection of migrant workers and to find out if Uganda subscribes to them To establish the provisions contained therein about the protection of Migrant workers. To establish the relevant key players in the protection of migrant workers from illegal migration and the remedies available for the victims of employment related illegal migration. To establish the challenges faced by migrants workers. 29

42 APPENDIX III: SITES VISITED Districts Officers to interact with Purpose Busia, Tororo, Soroti, Lira, Arua, Rakai, Mbarara, Kabale, Kasese, Mubende, Bugiri, Palisa, Mbale, Gulu, Isingiro, Ntungamo. DISO, District CIID, Labour officers, RDCs To establish how the process of vetting is under taken by the District security office To establish the level of awareness these key stakeholders have about the program To establish the role played by the police in preventing of illegal migration of workers. To establish the extent of presence of the licensed recruitment agencies in the area. Boarder points of Busia, Malaba, Mutukula, Katuna BISO, CIID, Joint Boarder Security Team, Immigration officers To establish the role played by the immigration officers in controlling the mode of movement of migrant workers at the boarder points. To establish the number and category of migrants worker using the boarder point. To establish how the process of vetting is under taken by the border security office To establish the level of awareness these key stakeholders have about the program To establish the role played by the police in preventing of illegal migration of workers. Missions in UAE, and Saudi Arabia Labour Camps in Sonapur, Mafraq workers City, Alquoz labour Camp, ICAD residential City in UAE. Embassy staff, Migrant workers, Foreign employers To establish living and workers conditions in UAE and Saudi Arabia To establish how mechanisms in place for safeguarding workers welfare are fairing To establish challenges faced in managing workers welfare issues and possible solutions to the challenges. 30

43 APPENDIX IV: INTERVIEWS CONDUCTED POSITION PURPOSE Director Labour To obtain an understanding of the Labour externalization program To understand the role and responsibilities Labour directorate plays in the implementation of the program To understand the processes and key players To obtain the challenges and achievements of the program and the way forward. Commissioner. Employment Service To obtain an understanding of the Labour externalization program To understand the role and responsibilities Labour directorate plays in the implementation of the program To understand the processes and key players To obtain the challenges and achievements of the program and the way forward. Joint Intelligence Committee To obtain an understanding of the role played by the JIC in the implementation of the program. To understand the process of vetting and other relevant players in the vetting process. To obtain an understanding of the challenges and achievement of the process and a way forward. Director. Rehab Uganda To obtain an understanding of the role the civil society organization play in the protection and safeguard of the rights of Uganda migrant workers. To establish the extent of workers rights violation as told by the victims of Labour related human trafficking. To establish the nature of recruitment many of the Labour related human trafficking victims used. To establish the mode of migrations through which many of the Labour related victims were trafficked To obtain the challenges faced by the civil society in providing support and rehabilitation of victims and a way forward. IOM To obtain an understanding of the role played by IOM in the externalization of Labour. To obtain an understanding of the nature of assistance that the Organization extends to the victims of Labour related victims To obtain the general view of the organization of the safety and safeguard of Ugandan migrant workers given the existing policies and practices To establish the role played by the IOM in the recent bilateral negotiations and eventual signing of agreements with some of the Labour receiving countries. To obtain an understanding of the existing challenges and possible way forward in the overall implementation of the program. 31

44 UAERA To obtain an understanding of the role played by the Umbrella organization in the externalization program. To obtain an understanding how the organization supervises and monitors the activities of the member agencies. To obtain an understanding of how the Organization enforces the regulation on Labour externalization with its member agencies. To obtain an understanding of the challenges faced by the organization in execution of it duties and the possible way forward. Coordinator Prevention of Trafficking in persons Task Force To obtain an understanding of the role played by the Anti Human trafficking taskforce in the protection and promotion of the rights and welfare of Migrant workers. To obtain an understanding of the process of curbing down Labour related trafficking in persons To establish the channels through which migrant workers are trafficked out of the country To obtain an understanding of the relationship that exists between the taskforce and the MGLSD in promoting the rights and safeguard of Ugandan migrant workers. To establish the registered number of Labour related human trafficking cases reported per year, investigated, prosecuted and convicted To establish other key players in the role of prevention of trafficking in persons especially the Labour related cases. Head diaspora Services To obtain an understanding of the role that the diaspora services and foreign mission perform in the implementation of the program. To obtain an understanding of the collaboration the department of diaspora has with MGLSD and other key stake holders in ensuring the welfare, safe guard and protection of rights of the migrant workers. To establish the mechanisms in place in the missions to monitor the welfare and protect the rights of Ugandan migrant workers in the Labour receiving countries To establish the mechanisms put in place to aid the workers abroad that may have complaints against their employers. To establish if there are any provisions made for Ugandans migrant workers in distress, and any funding for such activities. Ambassador to Saudi Arabia, Kuwait, Qatar, Bahrain, Oman, Jordan and Yemen To obtain an understanding of the role that the embassy has played in labour externalization. To understand and establish the mechanisms in place for monitoring the welfare and protecting the rights of Ugandan migrant workers in these countries. General Manager, HOUSEKEEPING CO. Dubai, UAE To get information on plans and survey the infrastructure in place that the Ministry of Labour in UAE is putting place to ensure protection of migrant workers in the UAE. 32

45 Director of Manpower Services, Maharah Human Resources Company in Riyadh, Saudi Arabia Labour Liaison, Riyadh, Saudi Arabia Recruitment officer HR, Western Bainoona Group, Abu Dhabi, UAE To find out how many Ugandan migrant workers were currently employed by that recruitment company and how many Ugandan licensed recruitment companies receive job orders from them. To find out if there are any complaints or grievance policies in place for workers and if there are provisions made for Ugandans migrant workers in distress with their employers. To get information on the steps both governments of Uganda and Saudi Arabia are currently piloting to ensure protection of Ugandans in Saudi Arabia. To find out how many Ugandan migrant workers were currently employed by that recruitment company and how many Ugandan licensed recruitment companies receive job orders from them. To find out if there are any complaints or grievance policies in place for workers and if there are provisions made for Ugandans migrant workers in distress with their employers. Migrant workers APPENDIX V: SHOWING AGENCIES ISSUED LICENSES BOFORE SUBMITTING BANK GUARANTEES Recruitment Agency License Issue date Bank guarantee Issue date Agency 1 22/04/ /10/2013 Agency 2 29/02/2012 none Agency 3 12/08/ /09/2014 Agency 4 18/10/ /09/2010 Agency 5 02/07/2014 none Agency 6 18/09/2015 none Agency 7 30/03/ /01/2016 Agency 8 20/11/ /08/2016 Agency 9 02/11/ /12/2013 Agency 10 02/07/ /10/2015 Agency 11 19/10/ /03/2014 Agency 12 26/04/ /04/2015 Agency 13 30/07/ /03/2016 Agency 14 08/01/ /10/2016 Agency 15 01/07/ /10/

46 APPENDIX VI: SHOWING AGENCIES THAT CONTINUED TRANSACTING WITH MOGLSD DURING THE PERIOD WHEN THEIR BANK GUARANTEES HAD EXPIRED Recruitment Agency Bank Guarantee Expiry date Bank guarantee Renewal date Agency 1 04/08/ /08/2017 Agency 2 31/08/ /10/2017 Agency 3 14/05/ /04/2017 Agency 4 19/03/ /10/2015 Agency 5 19/06/ /10/2016 Agency 6 04/01/ /02/2014 Agency 7 4/01/ /07/

47

48

49 THE REPUBLIC OF UGANDA

50 OFFICE OF THE AUDITOR GENERAL P.O.Box 7083, Kampala, Tel: Fax: