Kampala Capital City Authority (KCCA) lost Ugx25Billion to dubious companies according to a report for the year ending 2013, the parliament’s Public Accounts Committee was told.
KCCA Executive Director Jennifer Musisi is now requesting to write off the money because the Authority she heads could not trace the companies to enforce payments. The plea was tabled during a meeting between PAC and KCCA.
KCCA Director of Treasury Julius Kabugo explained that some of the untraceable companies had entered into agreement with the previous city managers-Kampala city council (KCC). As such, KCCA lacks the legal mandate to take action against any of the companies, Kabugo added.
“These contracts were awarded to companies for instance to manage markets or taxi parks, we found however that the management was done by a number companies. It became hard to recover the money without a legal instrument,” Kabugo said.
Some of the debtors mentioned include Kara- Owino Ugx3bn, Container village Ugx8m, Mumbejja Contract Ugx15m, Multiplex Ugx9m, and Public convenience Ugx123m. Others are Green boat Ugx49m, Mr Kiyimba Ugx14m, Cenco Africa Ugx79m, Nakawa Market Ugx103m and Nakawa Vendors Association Ugx449m, Bugolobi Market Ugx43m, Bugolobi Market Hak Ugx51, Bugolobi Market- Bugolobi Traders Ugx58m, Kiswa vendors Ugx2m, Jonantit Agen Ugx12m.
He said it has since become difficult to enforce because several of them cannot be traced even with the registrar of companies. Kabugo was responding to concerns by the committee lead counsel Gerald Karuhanga who tasked the KCCA boss to explain how they arrived to the conclusion that they would not recover the money.
Budadiri West MP Nathan Mafabi accused the KCCA officials of connivance with companies in question so as to share the money.
He said the laxity was evident that KCCA was looking forward to writing off the debts although the contacts of the company directors are known to them. Committee chairperson Alice Alaso told the KCCA team that writing off the debt wouldn’t be acceptable.
Meanwhile, KCCA also failed to ascertain money owed to it through property rates, ground rent, Local Hotel tax, Local service tax and Advertisement. The Authority initially stated that the money due to it stood at Ugx21bn but parliament ruled that due to poor financial systems, it is not verifiable.
It was pointed out that KCCA didn’t keep a ledger in regards to revenues accrued from property taxes. Musisi acknowledge not keeping ledgers but said a new electronic system was being put in place to cure the problem.
“We are sorry that we didn’t keep the ledger, because we didn’t have systems to support it, but we are putting up an electronic tax compliance system which will make it easier for us,” Musisi said.
The committee ordered Musisi to work at ensuring the recovery of the money because the explanation of system failure wasn’t satisfactory. The committee also grilled Musisi for advancing Ugx190m to her staff through their personal account to undertake direct procurements and other activities such as civil works, parties, collection of street children and games of the Authority.
Among the beneficiaries, is Joyce Nabosa Ssebugwawo, the Rubaga division mayor, who KCCA officials said received Ugx 5m to facilitate Christmas celebrations at her division headquarters.
Others are; Dr Daniel Okello, who is in charge of Kiteezi dumping site. He received Ugx 2.5m, Josephine Kitaka, Kiteezi landing field Ugx 750,000 , Robert Kalumba, deputy KCCA spokesperson Ugx18m to facilitate Iddi celebrations and Proscovia Nakate, cashed Ugx 5m.
The committee ordered Musisi to ensure the recovery of the money.