MPs order Masaka chiefs to refund sh900m

May 13, 2007

Interdicted Masaka municipality officials have to repay over sh900m.

By Paul Kiwuuwa and Apollo Mubiru

Interdicted Masaka municipality officials have to repay over sh900m.

The parliamentary local government accounts committee chaired by Mugarra Kabagambe ordered the officials to refund the money within one month.

The deputy town clerk, Gwavu Kiwanuka and the principal engineer, Hatim Mugenyi, appeared before the committee on Friday to answer queries raised in the Auditor General’s report for the financial years 2000/01 to 2001/02.

Kiwanuka and Mugenyi were interdicted last February over the alleged financial mismanagement and abuse of office by the district chief administrative officer, Joseph Mukwaya.

“The committee has directed the two to recover the funds advanced to them.

“If they fail, the funds will be deducted from their monthly salaries or their property attached.”
According to the report, Kiwanuka failed to account for a revenue shortfall of sh649m, while Mugenyi failed to account for sh362m for rehabilitating roads.

The report implicated Kiwanuka in advancing sh91m to the councillors, contrary to the regulations.

“Councillors do not earn salaries, it is contrary to the law to advance allowances to them. You must recover this money from their earnings,” John Otekat (Serere County) said.

“Although Mugenyi was given money to rehabilitate the roads under the Poverty Alleviation Fund, when the auditing was done, 90% of the road network was in a sorry state with potholes and gullies,” Kabagambe said.

“We have observed incompetence, negligence of duty, poor revenue collection and financial mismanagement.

“The committee is disappointed with their performance,” Kalungu West MP Anthony Yiga said.

The MPs rejected Kiwanuka’s defence for the sh648m shortfall in revenue collections, which he attributed to political intervention.

Kiwanuka said the scrapping of graduated tax caused the shortfall.

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