MPs grill Kawempe bosses on cash loss
May 30, 2009
Kawempe division has lost over sh6b in revenue as a result of financial mismanagement, MPs said on Thursday.
By Mary Karugaba
Kawempe division has lost over sh6b in revenue as a result of financial mismanagement, MPs said on Thursday.
While scrutinising the Auditor General’s report, the MPs on the local government accounts committee learnt that some of the contractors hired to collect the revenues in the division did not deposit the money on KCC’s general account and others collected the money without any
formal agreements.
The MPs put the division’s senior principal clerk assistant, Noah Bukenya, to task to explain the mismanagement.
They demanded to know why funds collected by Nicholas Enterprises Limited, a company hired to manage trading licenses and permits were banked on their accounts.
“The division could not monitor the progress of collections by the firm, apart from getting remittances from the contractor.
“There were instances where the firm collected revenue from business and never issued licenses but instead issued its own receipt,†the report reads.
Bukenya explained that after discovering the ‘faults’, Nicholas’ contract was terminated and another company, Crown Contractors Limited, was hired to do the job.
But on scrutiny, the MPs discovered that it took the authority three months to realise that the company had not deposited the initial funds and that it had not remitted the sh30m weekly payments.
“We can’t rule out the possibility of collusion,†Emma Boona, a committee member, said.
Committee chairperson Johnson Malinga said: “That was negligence on your part and you should be held responsible for the losses.â€
Committee member Anthony Yiga proposed that Bukenya refunds all the money.
Kawempe division has lost over sh6b in revenue as a result of financial mismanagement, MPs said on Thursday.
While scrutinising the Auditor General’s report, the MPs on the local government accounts committee learnt that some of the contractors hired to collect the revenues in the division did not deposit the money on KCC’s general account and others collected the money without any
formal agreements.
The MPs put the division’s senior principal clerk assistant, Noah Bukenya, to task to explain the mismanagement.
They demanded to know why funds collected by Nicholas Enterprises Limited, a company hired to manage trading licenses and permits were banked on their accounts.
“The division could not monitor the progress of collections by the firm, apart from getting remittances from the contractor.
“There were instances where the firm collected revenue from business and never issued licenses but instead issued its own receipt,†the report reads.
Bukenya explained that after discovering the ‘faults’, Nicholas’ contract was terminated and another company, Crown Contractors Limited, was hired to do the job.
But on scrutiny, the MPs discovered that it took the authority three months to realise that the company had not deposited the initial funds and that it had not remitted the sh30m weekly payments.
“We can’t rule out the possibility of collusion,†Emma Boona, a committee member, said.
Committee chairperson Johnson Malinga said: “That was negligence on your part and you should be held responsible for the losses.â€
Committee member Anthony Yiga proposed that Bukenya refunds all the money.