Irregulaties mar new multi-billion shilling markets project

All is not well at the $158m (sh568b) markets revamping programme. Funds were diverted, making the project miss its mark. This has led to an escalation of costs and under budgeting.

Seven markets in the districts of Mbale, Jinja, Kabarole (Fort Portal), Hoima, Gulu, Lira and Kampala were re-constructed in the first phase that started in 2010 at a cost of $74m (sh266b). 

The second phase, which includes 11 markets in as many districts, at a cost of $84m (sh302b), is ongoing. The markets in this phase are in Arua, Mbarara, Busia, Tororo, Soroti, Entebbe-Kitooro, Kasese, Moroto, Masaka, Kitgum and Lugazi towns. 

The funds for the markets were borrowed from the African Development Bank ($74m), the Arab Bank for Economic Development in Africa ($57m), while $7m is counter-funding from the Government of Uganda. 

A review of the first phase of the project by the AG reveals that sh1.97b, which was meant to clear value-added tax (VAT) arrears, was diverted to unplanned activities despite having VAT liability of sh13.5b.

A report by the Auditor General states that in the Jinja market, his inspection revealed shoddy plumbing works with leaking sewage pipes. In the same market, some stalls like those selling chicken and matooke (plantain) were left exposed to the elements. 

When the New Vision visited the Mbale market, Ayoub Madoi, the Mbale market chairperson, said that the structure is unfavourable for vendors and customers. 

People do not want to go upstairs and everybody yearns for vantage lock-ups downstairs. As a result, rent for these strategic spaces shot up from sh250,000 annually to sh1.11m, which is a 344% hike. 

This, aggravated by the high cost of electricity, has seen the market's occupancy at only about 30%, Madoi said. 

He explained that the power bill for the market is sh12m per month, of which the municipal council pays only sh3m, leaving the rest to the vendors. 

"Although the market is a public utility, with the majority of the vendors' low-income earners, our power bill unit cost remains high... we have tried to plead for a discount on the cost of the power units, without much success," Madoi said. 

Facilities and safety 

According to Ismail Wambedde, 30, a butcher, the market lacked freezing facilities to preserve meat. And Nicholas Masongo, a produce dealer, complained of lack of order in the market. He said that although the architectural plans intended to separate vendors of by trade, you often find produce dealers operating alongside fruit and vegetable sellers. 

Traders in Mbale Central Market have abandoned the building for the streets.

Some people blamed the lack of order on the vendors themselves and non-enforcement of rules. Because of the confusion, scores of vendors have chosen to operate on the roads outside the market, which leaves those inside the market at a disadvantage. 

Also, they said, the lack of clear rules saw two fire outbreaks, where at least 1,200 vendors lost stock and bowed out of business. 

Complaints were also aired elsewhere. 

Wandegeya Market 

In Kampala city, hundreds of kilometres from Mbale, Wandegeya Market vendors complain of failure to attract customers. Justine Namakula and other fishmongers here said that their merchandise sometimes rots away, despite the extended operating hours of up to 9:00 pm. 

"We do not understand why people do not come to this market. Either people do not know that this is a market, or our leaders have failed to advertise it," she lamented. On a good day, she takes home only sh30,000, which is not enough for her family. 

Tomatoes, avocado, onions, cabbage and green vegetable traders also cry over a similar fate in the market that was commissioned in April 2014. The traders, who operate from the extreme end of the market, complain that when it rains, the market floods, and when it shines, the sun goes directly to their produce, making it ripen and rot away faster than it normally would. 

Derrick Kulubya, the market secretary, said that although the Kampala Capital City Authority (KCCA) recently reduced rent charges on stalls by 40%, the numbers of vendors in the market are still few. 

A trader, who only identified herself as Sarah, said customers do not want to go upstairs where some of the traders operate, forcing traders to go to the streets. 

Kulubya said that KCCA pays the power and water bills, but it gets the money from the traders who have to pay fortnightly. 

Entebbe Market 

In the Entebbe Market that is yet to be reconstructed, the story is more intriguing. Ghost traders have crept in already.

The market in Kitooro, Entebbe is one of the 11 new ones to be developed in the second phase of the MATIP that was approved in 2014. Here, middlemen, commonly known as "landlords", seeking to rip off traders, are selling their stalls to other interested parties at high prices, said Entebbe municipal mayor De-Paul Kayanja. 

Some of these have also smuggled in the names of people who were never vendors in the market to position themselves as beneficiaries in the reconstructed market. 

According to Martin Isabirye, the chairperson of Entebbe Kitooro Market Vendors Association, at least 133 strange names appear on the list now. He says these ghost traders were mainly sent by influential people and children of traders. 

Ghosts are not the only complaints here; traders are worried that the authorities have failed to give them a place to relocate temporarily as they wait for the reconstruction of the market. 

Kayanja had promised that they would be relocated by the end of April this year. But by press time, 400 out of the 900 registered vendors in the association had been relocated and the rest are still in the old stalls at the site. 

Kayanja said they are still negotiating with owners of three places, where they hope to relocate them. 

According to Isabirye, the local government ministry has given the Entebbe authorities until August 31, 2017, to relocate the vendors for the construction of the market to begin in September. 

"We have not reached anywhere so far in terms of relocating the vendors. We hope that by the end of this month, the vendors will have relocated to a new temporary site," Isabirye said. 

Government responds 

Geoffrey Ettedu, the national MATIP programme facilitator at the local government ministry, said that ghosts had been avoided in the already constructed markets through the creation of a committee to vet the vendors. 

The committee comprised existing vendors, technical officers from the municipal council, and officers from the local government ministry. 

"To ensure transparency, vendor registers were displayed on all the market noticeboards to ensure that each vendor gets to know who has been allocated which facility. It is after the display exercise that vendors were allowed back into the new market," he said. 

Ettedu noted that all issues of illegal occupancy should be addressed by the municipal councils together with the vendors. On the design issues, Ettedu says for all the markets, the design was preceded by a comprehensive needs assessment after wide consultations with stakeholders, including vendors. 

On crowding in certain places, low occupancy and vendors pouring onto the streets, Ettedu blamed the respective municipal councils for failure to enforce market regulation, which were issued before occupancy. 

He also said that all markets were fitted with fire-fighting equipment, which should minimise the effects of fire outbreaks. 

On fees, Ettedu said that the local government ministry has only regularly provided guidance on the most appropriate charges to be applied so as to balance between the need for revenue by the councils and sustainability of the vendors' businesses.