ON SPOT! Mbarara Biharwe Mixed P/S Staff Houses Project Stalls as City Authorities Face Probe Over Missing Sh44M

By Amos Tayebwa

Mbarara –A government-funded staff housing project at Biharwe Mixed Primary School in Mbarara City North Division has stalled for two months, following a payment dispute between the contractor and Mbarara City Council. The suspension has prompted investigations into the alleged diversion of UGX 44 million meant for the project.

The issue came to light on Friday, 31st October 2025, when a team from the Office of the Resident City Commissioner (RCC) led by Deputy RCC Jackline Kankunda visited the school to check on Primary Seven candidates sitting their PLE exams Monday and Tuesday and to assess ongoing government projects.

During the visit, Jerivas Tukwatanise, the headteacher, revealed that the contractor, M/s Ugawood Company Ltd, abandoned the site after the city council allegedly failed to release funds.

“The engineer had reached the stage of painting and tiling when he stopped work, saying the city council had not paid. We request the authorities to intervene so that this project can be completed for our teachers and learners,” said Tukwatanise.

According to project documents, the Ministry of Education and Sports allocated UGX 160,835,457 through Mbarara City Council to construct six staff houses. The three-month contract, awarded to M/s Ugawood Company Ltd on 30th July 2025, has since stalled due to delayed payments.

Sources allege that UGX 44 million, which was released by the city council for the Biharwe staff house project, was instead diverted to another company, Be Camel Company Ltd, which also had ongoing contracts with the council.

Eng. Robert Ninsiima, site engineer for Ugawood Company Ltd, confirmed the company had already invested about UGX 130 million of its own funds before halting work.

“We abandoned the site after discovering that our UGX 44 million payment was mistakenly sent to another contractor. We sought clarification from city officials, but no action was taken. If we are paid, we can complete the remaining work within weeks,” Ninsiima said.

When contacted, Dunat Kamugisha, the then acting Chief Finance Officer at Mbarara City Council, admitted that a payment error had occurred.

“It’s true the UGX 44 million was mistakenly sent to Be Camel Company Ltd, which was also working with the city. Before I left office, we reconciled with them, and they agreed to transfer the money to Ugawood Company Ltd. As far as I know, that issue was resolved,” Kamugisha said.

However, Ugawood Company insists it has not received the funds, while Be Camel has not publicly confirmed any transfer.

Deputy RCC Kankunda has since demanded an official explanation from city authorities, including Town Clerk Justine Barekye, on why the project remains incomplete despite the reported release of funds.

“If UGX 44 million was released but diverted, those responsible must refund it. I want the Town Clerk and the Engineer to explain why this government project is abandoned. We want to see this project completed and handed over to the teachers — no excuses,” Kankunda warned.

She further directed the city council to provide detailed project documents, including the Bills of Quantities (BOQs), and a report on how the project funds were utilized.

The Biharwe staff houses project, intended to improve teacher accommodation and retention, now risks further delays as investigations into the alleged misappropriation continue.