KCC frustrates road repairs in Ntinda â€" proprietors
Nov 14, 2007
THE law is clear. At least 75% of property rates is supposed to be for road improvement in the areas where it is collected. However, property owners in Ntinda industrial area are unhappy with Kampala City Council (KCC) for failing to repair four roads in the area, even after they contributed sh500m
By Joshua Kato
THE law is clear. At least 75% of property rates is supposed to be for road improvement in the areas where it is collected. However, property owners in Ntinda industrial area are unhappy with Kampala City Council (KCC) for failing to repair four roads in the area, even after they contributed sh500m. KCC valued the cost of repairing the roads at sh1b in 2005.
The area, between Kyambogo and Ntinda trading centre, has over 20 factories including Oscar Industries, GM Tumpeco, Hwan Sung, MTN Assembly Line and Crestfoam. The impassable roads include Factory Close, Kyambogo Link, Factory Lane, Caltex Drive and Factory Drive.
“The roads hinder our businesses. We want our customers to have easy access to our premises, but this cannot happen when the roads are impassable.
City authorities should prohibit trailers from entering the city because they contribute greatly to the destruction of roads,†says Jeung-Bong Ahn, the vice-chairman of Hwan Sung Limited, says.
“Our contribution would be 10-year up-front payment for property rates,†Kiwanuka says.
“In August 2003, we wrote to KCC about the state of the roads. We contributed sh500m which was part of our property rates,†M. Kiwanuka, the proprietor of Oscar Industries, says. According to KCC, properties in this area contribute at least sh60m annually.
According to the Local Government Act, revenue raised from property rates must be used on delivering services to residents of the areas. The requirement is that at least 75% of rates is spent on road construction,†states Section 2.2 of the Local Governments Property Rating handbook.
Property owners also gave KCC powers to cost, design and tender the roads. Proprietors also asked KCC to involve them when signing a contract with the contractors.
In November 2004, after more than a year of correspondences, KCC released the costing of the roads. It was estimated at sh1b.
However, problems started when KCC wanted an account opened up in the names of Nakawa Division, on which the property owners’ contributions would be deposited. But the owners were against it, saying they could not deposit their money on a government account,†Kiwanuka says.
Despite the disagreement, on March 17, KCC appointed M/S Computing Design and Construction Company to work on Factory Close. “We wanted an account controlled by both of us, since we were contributing almost half of the funds,†Kiwanuka adds. Property owners feared that the funds would be misused if they did not have partial control over them.
The Nakawa LC3 Chairman, Protazio Kintu, declined to comment on the issue, but the KCC deputy Spokesperson, Herbert Ssemakula, said the contractor insisted on a guarantee from KCC that they would be paid. “KCC could only give this guarantee if the money was on its account,†said Semakula.
“This money belonged to KCC and by law we are required to account for it. That would not be possible if the money is deposited on a private account. These roads belong to KCC and the contractor therefore wanted a guarantee from KCC rather than the property owners,†he added. However, according to a source in the works ministry, Ntinda Industrial Area will be given priority the next time roads are being repaired.
Additional reporting by John Eremu
THE law is clear. At least 75% of property rates is supposed to be for road improvement in the areas where it is collected. However, property owners in Ntinda industrial area are unhappy with Kampala City Council (KCC) for failing to repair four roads in the area, even after they contributed sh500m. KCC valued the cost of repairing the roads at sh1b in 2005.
The area, between Kyambogo and Ntinda trading centre, has over 20 factories including Oscar Industries, GM Tumpeco, Hwan Sung, MTN Assembly Line and Crestfoam. The impassable roads include Factory Close, Kyambogo Link, Factory Lane, Caltex Drive and Factory Drive.
“The roads hinder our businesses. We want our customers to have easy access to our premises, but this cannot happen when the roads are impassable.
City authorities should prohibit trailers from entering the city because they contribute greatly to the destruction of roads,†says Jeung-Bong Ahn, the vice-chairman of Hwan Sung Limited, says.
“Our contribution would be 10-year up-front payment for property rates,†Kiwanuka says.
“In August 2003, we wrote to KCC about the state of the roads. We contributed sh500m which was part of our property rates,†M. Kiwanuka, the proprietor of Oscar Industries, says. According to KCC, properties in this area contribute at least sh60m annually.
According to the Local Government Act, revenue raised from property rates must be used on delivering services to residents of the areas. The requirement is that at least 75% of rates is spent on road construction,†states Section 2.2 of the Local Governments Property Rating handbook.
Property owners also gave KCC powers to cost, design and tender the roads. Proprietors also asked KCC to involve them when signing a contract with the contractors.
In November 2004, after more than a year of correspondences, KCC released the costing of the roads. It was estimated at sh1b.
However, problems started when KCC wanted an account opened up in the names of Nakawa Division, on which the property owners’ contributions would be deposited. But the owners were against it, saying they could not deposit their money on a government account,†Kiwanuka says.
Despite the disagreement, on March 17, KCC appointed M/S Computing Design and Construction Company to work on Factory Close. “We wanted an account controlled by both of us, since we were contributing almost half of the funds,†Kiwanuka adds. Property owners feared that the funds would be misused if they did not have partial control over them.
The Nakawa LC3 Chairman, Protazio Kintu, declined to comment on the issue, but the KCC deputy Spokesperson, Herbert Ssemakula, said the contractor insisted on a guarantee from KCC that they would be paid. “KCC could only give this guarantee if the money was on its account,†said Semakula.
“This money belonged to KCC and by law we are required to account for it. That would not be possible if the money is deposited on a private account. These roads belong to KCC and the contractor therefore wanted a guarantee from KCC rather than the property owners,†he added. However, according to a source in the works ministry, Ntinda Industrial Area will be given priority the next time roads are being repaired.
Additional reporting by John Eremu