February 28, 2014

Mbarara Municipality Broke

mbarara bullWith only three months left to the end of 2013/2014 financial year, Mbarara municipal council has suspended funding of key department activities following shortfalls in local revenue collection. The revenue short fall was majorly caused by the failure to manage Mbarara main taxi park and boda boda fee collection, which are major sources of local revenue for the municipality.

Council had previously planned to collect 647,907,905 from local service tax, occupation permits and park fees but only 482,676,581 has been realized  causing a shortage of 166,271,119. Wilson Tumwine, the Mayor Mbarara municipality says as a result of the revenue short fall they have decided to make adjustments on the expenditure estimates for all departments.

He identifies the affected departments as town clerk’s office, enforcement, human resource, finance and accounting, council, committees and commissions. Others are production and commercial services, Engineers office, community development department and roads.

In the executive committee report presented to full council meeting on Wednesday, Tumwine said the revenue short fall will affect beneficiaries of the monthly pensions, staff and senior personnel’s night allowances, property valuation, taxi park drainage works, road designing costs, vehicle repairs and construction of community center among others.

Mayor Tumwine says council needs to rise over 250million shillings in order to cover the revenue shortfall before the financial year’s budgets expires in July 2014 yet a lot of their activities have not been implemented.

Johnson Baryantuma Munono, the Town clerk Mbarara municipality says the revenue short fall should not affect the implementation of vital projects. He recommended to council to pass a supplementary budget of 250million shillings. But this has not gone down well with the 22 councilors, who claim that the municipality has a lot of an accounted for funds either collected locally or from central Government releases.

Kate Nakalema, the representative of Kakoba division reasoned that a lot of money collected from the sale of Muchomo and other revenue sources has not been included in the budgets. Nakalema demands an explanation from the town clerk as to why council has a short fall yet 500million shillings collected from the disposal of plot 32 40 Mbaguta Street remains unaccounted for.

Jessica Byaruhanga, the councilor representing Nyamityobora ward says the executive has failed to implement approved projects as per the 2013/2014 budget and is shifting blame on local revenue short fall.

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