CAA faces $50m loan crisis
Oct 12, 2005
THE Civil Aviation Authority (CAA) is in a crisis following the $50m (sh93b) loan the authority inherited when it became an autonomous body, Parliament’s works and transport committee vice-chairperson, John Byabagambe, has said.
By Patrick Jaramogi and Wilfred Sanya
THE Civil Aviation Authority (CAA) is in a crisis following the $50m (sh93b) loan the authority inherited when it became an autonomous body, Parliament’s works and transport committee vice-chairperson, John Byabagambe, has said.
“This loan has been on for the last three years. Each year it’s brought in Parliament, it’s referred to the next financial year,†he said at the second transport sector review meeting at Speke Resort Munyonyo in Kampala on Tuesday.
The three-day meeting that was attended by development partners and officials from the finance ministry was aimed at evaluating the transport sector’s performance.
Byabagambe said the loan prevents CAA from accessing other loans from any bank.
Works, transport and communication minister, Eng John Nasasira, promised to handle the matter with the finance ministry.
Ignie Igundura, CAA’s spokesman, said the loans accumulated after the Government got a loan from Spain and a grant from Denmark in 1994 for the airport infrastructure and terminal facelift.
“The Government got the money before handing over to CAA and the interest which was at 5% has now accumulated to $50m,†he said.
Igundura said CAA is also owed $8m by the United Nations peacekeeping Mission in DR Congo, (Monuc), as costs accumulated over the last three years for utilising the airport facilities.
“As per international civil aviation standards, there are charges levied for navigation, landing and parking but the UN has never paid us. The amount has accumulated to $8m (sh14.8b),†he told the gathering.
THE Civil Aviation Authority (CAA) is in a crisis following the $50m (sh93b) loan the authority inherited when it became an autonomous body, Parliament’s works and transport committee vice-chairperson, John Byabagambe, has said.
“This loan has been on for the last three years. Each year it’s brought in Parliament, it’s referred to the next financial year,†he said at the second transport sector review meeting at Speke Resort Munyonyo in Kampala on Tuesday.
The three-day meeting that was attended by development partners and officials from the finance ministry was aimed at evaluating the transport sector’s performance.
Byabagambe said the loan prevents CAA from accessing other loans from any bank.
Works, transport and communication minister, Eng John Nasasira, promised to handle the matter with the finance ministry.
Ignie Igundura, CAA’s spokesman, said the loans accumulated after the Government got a loan from Spain and a grant from Denmark in 1994 for the airport infrastructure and terminal facelift.
“The Government got the money before handing over to CAA and the interest which was at 5% has now accumulated to $50m,†he said.
Igundura said CAA is also owed $8m by the United Nations peacekeeping Mission in DR Congo, (Monuc), as costs accumulated over the last three years for utilising the airport facilities.
“As per international civil aviation standards, there are charges levied for navigation, landing and parking but the UN has never paid us. The amount has accumulated to $8m (sh14.8b),†he told the gathering.