UTODA contract to be terminated
Nov 04, 2008
THE Kampala city contracts committee has asked the city council (KCC) to terminate the contract of the Uganda Taxi Operators and Drivers Association (UTODA) for accumulated arrears of sh1.9b.
By Josephine Maseruka
THE Kampala city contracts committee has asked the city council (KCC) to terminate the contract of the Uganda Taxi Operators and Drivers Association (UTODA) for accumulated arrears of sh1.9b.
Josephine Bbosa Karugonjo, a city advocate, yesterday told the commission of inquiry into Makindye and Kawempe divisions, that the UTODA contract had several problems.
She said whenever KCC tries to terminate the UTODA contract, its leaders run to high offices. “We think they have god-fathers.†She did not disclose the names of the god-fathers.
Bbosa said at one time, UTODA arrears had risen to almost sh3b and when KCC tried to terminate the contract, they ran to the local government minister and the then the Permanent Secretary, who made them agree to pay sh4m daily to clear the arrears.
“Due to this intervention, the arrears have reduced from sh3b to sh1.9m, but again, UTODA continues to default on the monthly contracted amount of sh290m.
Karugonjo was responding to Aggrey Awori, a commissioner, who wondered why UTODA’s contract had not been terminated despite accumulating arrears and defaulting on contract terms. Instead it.
Karugonjo said: “KCC staff is scared of UTODA members. We neither have batons nor guns. They have muscle men who can beat you thoroughly.â€
Jacob Oulanyah, the probe chairperson, told Bbosa that in other countries, tax on vehicles is the easiest to collect.
Karugonjo said she had advised KCC to change from using middle-men to collect revenue from taxis and adopt direct banking.
She said under the system, KCC through its finance directorate, would count all taxis and issue them with numbers.
The drivers or owners would be told the amount payable in a given period and they would be served with demand notices. They would then directly pay to banks specified. This, she added, would save KCC a lot of trouble in collecting revenue from taxis.
She, however, said it was difficult to count all taxis, since some operate up-country and many are loaded on the streets.
Bbosa noted that property tax had been one of the main sources of revenue to KCC coffers, but with the recent amendment of the Local Government Act, residences were exempted from this tax.
“It is very difficult to collect property tax from commercial and rental houses because people take cover under residential exemptions.
“In some places, you can see rental houses occupied but the owner would claim that they are residences of his relatives. When you try to enforce the law, they can beat you up.â€
She singled out Kawempe Division, which is dominated by Muslims and some have four wives, each in her own residence.
“Imagine we cannot collect revenue from all these residences and a division spends according to what it collects. There must be a small percentage charged on residences,†Bbosa said.
She said Lubaga Division was also affected by property tax exemption on residences, since most property is owned by former Buganda chiefs or royals, who have invested heavily in rental premises but call them residences.
Oulanyah asked: “Why should KCC want to reap where it does not sow? I have my residence in Kampala and I leave my car half a mile away because of a bad road. Why don’t you also invest in residents?â€
She said unless the Government invested in KCC, there is no way it can impact the city with meagre resources.
THE Kampala city contracts committee has asked the city council (KCC) to terminate the contract of the Uganda Taxi Operators and Drivers Association (UTODA) for accumulated arrears of sh1.9b.
Josephine Bbosa Karugonjo, a city advocate, yesterday told the commission of inquiry into Makindye and Kawempe divisions, that the UTODA contract had several problems.
She said whenever KCC tries to terminate the UTODA contract, its leaders run to high offices. “We think they have god-fathers.†She did not disclose the names of the god-fathers.
Bbosa said at one time, UTODA arrears had risen to almost sh3b and when KCC tried to terminate the contract, they ran to the local government minister and the then the Permanent Secretary, who made them agree to pay sh4m daily to clear the arrears.
“Due to this intervention, the arrears have reduced from sh3b to sh1.9m, but again, UTODA continues to default on the monthly contracted amount of sh290m.
Karugonjo was responding to Aggrey Awori, a commissioner, who wondered why UTODA’s contract had not been terminated despite accumulating arrears and defaulting on contract terms. Instead it.
Karugonjo said: “KCC staff is scared of UTODA members. We neither have batons nor guns. They have muscle men who can beat you thoroughly.â€
Jacob Oulanyah, the probe chairperson, told Bbosa that in other countries, tax on vehicles is the easiest to collect.
Karugonjo said she had advised KCC to change from using middle-men to collect revenue from taxis and adopt direct banking.
She said under the system, KCC through its finance directorate, would count all taxis and issue them with numbers.
The drivers or owners would be told the amount payable in a given period and they would be served with demand notices. They would then directly pay to banks specified. This, she added, would save KCC a lot of trouble in collecting revenue from taxis.
She, however, said it was difficult to count all taxis, since some operate up-country and many are loaded on the streets.
Bbosa noted that property tax had been one of the main sources of revenue to KCC coffers, but with the recent amendment of the Local Government Act, residences were exempted from this tax.
“It is very difficult to collect property tax from commercial and rental houses because people take cover under residential exemptions.
“In some places, you can see rental houses occupied but the owner would claim that they are residences of his relatives. When you try to enforce the law, they can beat you up.â€
She singled out Kawempe Division, which is dominated by Muslims and some have four wives, each in her own residence.
“Imagine we cannot collect revenue from all these residences and a division spends according to what it collects. There must be a small percentage charged on residences,†Bbosa said.
She said Lubaga Division was also affected by property tax exemption on residences, since most property is owned by former Buganda chiefs or royals, who have invested heavily in rental premises but call them residences.
Oulanyah asked: “Why should KCC want to reap where it does not sow? I have my residence in Kampala and I leave my car half a mile away because of a bad road. Why don’t you also invest in residents?â€
She said unless the Government invested in KCC, there is no way it can impact the city with meagre resources.