Mukono settles sh800m debt for adminsitrative block
Jun 27, 2007
MUKONO district council has cleared a sh798m debt it owed Excel Construction Company, the former contractors of the sh4.2b new administrative block.
By Joel Ogwang
MUKONO district council has cleared a sh798m debt it owed Excel Construction Company, the former contractors of the sh4.2b new administrative block.
Harriet Nankabirwa, the finance secretary, said the debt was inherited by the former council, chaired by Godfrey Ddamulira.
“We have also paid Zebra Associates 99% (of the sh216m) for roofing the block,†she told a council meeting recently.
The debt arose out of a contract that Excel won for the partial completion of the block in 2001.
Ddamulira terminated the contract in 2005. Nankabirwa said the district received a sh370m donation from the Iceland government through the Icelandic International Development Agency .
Nankabirwa said: “Very soon, all civil servants will shift their offices to the block.â€
She also revealed that sh93m was paid to settle civil servants’ salary arrears in the last financial year.
The district council recently endorsed a sh33b budget for the 2007/08 fiscal year.
“We are still studying the national budget before we can select taxable areas,†Nankabirwa said.
Mukono earned sh1.3b in from graduated tax compensation last year.
MUKONO district council has cleared a sh798m debt it owed Excel Construction Company, the former contractors of the sh4.2b new administrative block.
Harriet Nankabirwa, the finance secretary, said the debt was inherited by the former council, chaired by Godfrey Ddamulira.
“We have also paid Zebra Associates 99% (of the sh216m) for roofing the block,†she told a council meeting recently.
The debt arose out of a contract that Excel won for the partial completion of the block in 2001.
Ddamulira terminated the contract in 2005. Nankabirwa said the district received a sh370m donation from the Iceland government through the Icelandic International Development Agency .
Nankabirwa said: “Very soon, all civil servants will shift their offices to the block.â€
She also revealed that sh93m was paid to settle civil servants’ salary arrears in the last financial year.
The district council recently endorsed a sh33b budget for the 2007/08 fiscal year.
“We are still studying the national budget before we can select taxable areas,†Nankabirwa said.
Mukono earned sh1.3b in from graduated tax compensation last year.