THE Kampala City Council (KCC) yesterday handed over management of St. Balikuddembe (former Owino) and Nakasero markets to two companies owned by city tycoon Hassan Basajabalaba.
By Catherine Ntabadde And David Muwanga THE Kampala City Council (KCC) yesterday handed over management of St. Balikuddembe (former Owino) and Nakasero markets to two companies owned by city tycoon Hassan Basajabalaba.
Victoria International Trading Company and Sheila Investments won tenders to manage Owino and Nakasero markets respectively.
Local government minister Jaberi Bidandi Ssali had opposed the awarding of the tenders to the two companies, saying the vendors should have a stake in the markets’ management. The long-awaited signing of the contracts took place yesterday at the City Hall.
John Ssebaana Kizito, Kampala mayor and James Ssegane, acting town clerk, signed on behalf of KCC.
Asuman Irungu Victoria International chief signed on behalf of Victoria while Eric Bwarare signed on behalf of Sheila Investments.
There has been controversy over the markets award to Basajjabalaba. Ssebaana said, “We in KCC do not award tenders. We have an independent tender board which goes through many steps before awarding the tender. KCC does not have anything at all to do with the awards.â€
Ssebaana said at the function attended by city secretaries, division chairmen and district councillors, that it was very difficult for KCC to turn down a decision made by the Kampala District tender board.
“It is not a matter of defying the minister but explaining the matter and status of KCC. The status is that there is a contract between KCC and the winning companies. We cannot break the contract. We are not prepared to suffer the consequences. When there is a breach of contract, there are always consequences. KCC does not have the money to pay for losses incurred by the two companies,†the mayor said amid heavy clapping. Ssegane said KCC was not selling or leasing the two markets but divesting the management of services in Kampala to private entrepreneurs.
“The contract especially for Owino shall honour all long-term agreements made between KCC and owners of lock-up shops, this take care of the interests of the lock-up shop owners.†Ends