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Kampala City Council probes accounts

By Vision Reporter

Added 13th September 2006 03:00 AM

KAMPALA City Council (KCC) has set up a five-person committee to investigate how billions of shillings disappeared from its Stanbic Bank accounts between 1999 and 2005.

KAMPALA City Council (KCC) has set up a five-person committee to investigate how billions of shillings disappeared from its Stanbic Bank accounts between 1999 and 2005.

By Geresom Musamali
and Florence Nakaayi

KAMPALA City Council (KCC) has set up a five-person committee to investigate how billions of shillings disappeared from its Stanbic Bank accounts between 1999 and 2005.

This follows the Uganda Revenue Authority (URA) freezing KCC accounts, which left the institution in a financial crisis.

The Government also recently suspended financial disbursements to KCC, which left it with no money to pay workers and deliver services. URA wants sh3.2b in unremitted Pay As You Earn on teachers’ salaries.

During a stormy extraordinary meeting on Tuesday evening, the council resolved to give its debtors seven days to pay up. About sh1.8b is needed to clear August and September salaries for teachers, medical workers and other local government staff.

Town clerk James sseggane and Prossy Ssebina, the director of finance, were interdicted last week.

Mayor Nasser Sebaggala said city businessman Hassan Basajjabalaba, through his companies managing Nakasero and St. Balikuddembe markets, owes KCC over sh5b.

Some councillors, however, said there was a dispute over the exact amount Basajjabalaba owes KCC, because he claims he undertook renovations on the markets.

Uganda Taxi Operators and Drivers Association (UTODA) also owes KCC over sh1b but Sebaggala, said they had paid sh350m on Tuesday morning.

Members of the probe are councillors Bernard Beiga, Yona Musinguzi, Joyce Achan, Caesar Tokoma and Dr. Kiwanuka Mayambala.

The council rejected co-opting a lawyer and a chartered accountant to assist them in the probe, saying they could not pay them.

Sebaggala said council work had been paralysed because they did not have fuel and spare parts for their vehicles, including garbage collection trucks.

Alice Muwanguzi said even if the money was available, there were no signatories but acting town clerk Muwonge Kewaza, who has since been suspended, said he would take up the matter with Sebaggala and the local government ministry.

Kampala City Council probes accounts

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