Don’t sign roadworks contracts outside govt budget, Ggoobi tells contractors
Ggoobi assured the contractors that the Government is in the process of mobilising the money owed to them, which will be paid in the course of this financial year.
Ggoobi also said the cause of these accumulated arrears was poor planning and budgeting, which is now being addressed. (Credit: X/@mofpedU)
Umar Kashaka
Journalist @New Vision
By Umaru Kashaka
KAMPALA - Finance ministry permanent secretary Ramathan Ggoobi has urged contractors to desist from signing contracts for roadworks when there is no money in the national budget.
He made the call on February 27), 2025, while meeting works ministry contractors that the Government owes about shillings 500 billion in accumulated arrears.
Ggoobi assured the contractors that the Government is in the process of mobilising the money owed to them, which will be paid in the course of this financial year.
“He asked the contractors to waive penalties and charges to enable the Government pay all pending certificates, adding that they should also desist from signing contracts when there is no money in the budget,” the finance ministry said in a statement.
He also said the cause of these accumulated arrears was poor planning and budgeting, which is now being addressed.
Ggoobi, who is also the country’s Secretary to the Treasury, said this will not re-occur effective next financial year 2025/26.
He also noted that in some cases, contracting was not done well and that the Government was committed without money in the budget. He also stated that multi-year commitments were not being protected.
The Uganda National Association of Builders, Suppliers and Engineering Contractors in a joint statement to Ggoobi said delayed payments negatively affects the construction business in the country.
The statement signed by their president, Kiara Binta Nkuranga, urged the Government to fast-track the payments so that contractors can meet their obligations to financial institutions and suppliers.
Works ministry permanent secretary Waiswa Bageya attended the meeting and said the functions of the former Uganda National Roads Authority, which contracted them, are now fully under his ministry.
He thanked the contractors for their work and patience, the statement said.
Last year, Deputy Speaker of Parliament Thomas Tayebwa revealed that the Government loses shillings 295 million daily as interest and penalties paid to UNRA contractors because of failure to pay them on time.
He was speaking during an evening fireplace conversation with the youth at Ndere Centre in Kampala city on August 14, 2024.