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KCC does not owe city divisions

By Vision Reporter

Added 25th July 2007 03:00 AM

IN the recent past, city division chairmen have been complaining that Kampala City Council (KCC) is stifling their work by failing to remit funds that are due to them. They are, therefore, advocating autonomy from KCC and want to become municipalities or districts.

IN the recent past, city division chairmen have been complaining that Kampala City Council (KCC) is stifling their work by failing to remit funds that are due to them. They are, therefore, advocating autonomy from KCC and want to become municipalities or districts.

By Apollo Mugume

IN the recent past, city division chairmen have been complaining that Kampala City Council (KCC) is stifling their work by failing to remit funds that are due to them. They are, therefore, advocating autonomy from KCC and want to become municipalities or districts.

However, KCC does not owe divisions any money. During the last financial year, KCC disbursed about sh4.b to the five divisions. The amount of money paid to each division includes 30% transfer of taxes collected, Graduated Tax compensation, Uganda Taxi Operators and Drivers Association (UTODA) and parking fees, chairpersons salary and local government development funds. All accounts have been paid, except UTODA funds, where KCC is in six months arrears.

The disbursements are broken down per division as follows; central division received about sh979m, Nakawa sh741m, Makindye sh804m, Rubaga sh721m and Kawempe sh839m.

Thirty percent transfers are taxes collected by the divisions. They collect taxes from markets; for example, they transfer these funds to the headquarters, which in return send 30% of the funds back to them.

From the funds that were transferred between October 2006 and May 2007, a total of about sh5m was sent to the five divisions. Kawempe received about sh110m, Rubaga sh108m, Makindye sh147m, Nakawa sh91 and Kampala Central sh78m.

Graduated Tax compensation was set up by the Government to compensate local governments after the tax was scrapped. Kampala, like other local governments, has been receiving a share of these funds.

Once received, KCC promptly distributes what is due to each of the divisions. In the last financial year, a total of about sh888m was transferred to the divisions. Of these, Kawempe received about sh141m, Rubaga sh116m, Makindye sh1m, Nakawa sh107m and Kampala Central sh391m.

KCC claims UTODA and park fees were also disbursed to the divisions. Kawempe received about sh138m, Rubaga sh127m, Makindye sh127m, Nakawa sh127m and Kampala Central received sh286m. These funds were disbursed in seven batches between August 2006 and June 2007.

Division chairpersons and their executives’ salaries are disbursed by KCC. Each of the divisions received sh5m in December 2006, sh4m in February 2007 and sh3m in June 2007. Overall, a total of sh60m was disbursed between December 2006 and June 2007.

In the last financial year, a total of sh1.6b was disbursed to the local governments in the five divisions in three batches (January 2007, March 2007 and May 2007). Kawempe received about sh420m, Rubaga about sh339m, Makindye about sh392m, Nakawa sh361m and Central sh141m.

KCC is planning to visit each of the divisions to find out how the funds have been spent.

The writer is the chairman Finance and Economics Affairs Committee, LC5 Councillor, Kampala

KCC does not owe city divisions

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