KCC financial woes are self-inflicted
THE Commission of Inquiry into the Financial and Administrative Irregularities in Kampala Central Division has released its findings, which among other things, show that the city authorities have lost over sh40b over the past few years through mismanagement.
THE Commission of Inquiry into the Financial and Administrative Irregularities in Kampala Central Division has released its findings, which among other things, show that the city authorities have lost over sh40b over the past few years through mismanagement.
Kampala City Council (KCC) lost over sh13b in botched leases, tenders and contracts in the past one year. This was on top of the sh28b that was lost between 2000 and 2005 and reported in the Auditor General’s reports, according to the findings.
The Commission, no doubt, has highlighted the underlying causes of the financial woos of the Kampala city administration. Too often, the city authorities claim that they are unable to deliver services because they are financially incapacitated. They claim that cannot generate adequate revenue and that Central Government’s funding is insufficient.
The fact, though, is that Kampala’s financial woes are self-inflicted. The city authorities have grossly mismanaged the revenue collection. This is quite clear from the Commission’s report, which in part states: “Audited Accounts availed to us from 2000 to 2005 indicate continued failure by the City Council to adhere to the Auditor General’s recommendations on accounting systems and reports. Over sh28b revenue was lost between 2001 and 1006. Causes identified were non-review of contracts, failure to terminate bad contracts even after breach and poor revenue collection.â€
The report adds: “Many unauthorised persons are collecting monies illegally in the name of KCC, sometimes with chits of authority from KCC elected officials at headquarters, or division level (public convenience, outdoor advertising, payphones, washing bays) without KCC or Central Division enforcing the law to stop themâ€
The Commission, however, did not go far enough in its recommendations. We would have expected the Commission, for example, to recommend for the immediate termination of the UTODA contract which has already caused a sh1.9b loss to the City Council.
Furthermore, if the Commission of Inquiry’s investigations are to be taken seriously, then the Local Government Minister Maj Gen Kahinda Otafiire must ask the Police to investigate and prosecute all individuals, within and outside the council implicated in the theft and embezzlement of the city council revenues or in causing financial losses to KCC.
Kampala City Council (KCC) lost over sh13b in botched leases, tenders and contracts in the past one year. This was on top of the sh28b that was lost between 2000 and 2005 and reported in the Auditor General’s reports, according to the findings.
The Commission, no doubt, has highlighted the underlying causes of the financial woos of the Kampala city administration. Too often, the city authorities claim that they are unable to deliver services because they are financially incapacitated. They claim that cannot generate adequate revenue and that Central Government’s funding is insufficient.
The fact, though, is that Kampala’s financial woes are self-inflicted. The city authorities have grossly mismanaged the revenue collection. This is quite clear from the Commission’s report, which in part states: “Audited Accounts availed to us from 2000 to 2005 indicate continued failure by the City Council to adhere to the Auditor General’s recommendations on accounting systems and reports. Over sh28b revenue was lost between 2001 and 1006. Causes identified were non-review of contracts, failure to terminate bad contracts even after breach and poor revenue collection.â€
The report adds: “Many unauthorised persons are collecting monies illegally in the name of KCC, sometimes with chits of authority from KCC elected officials at headquarters, or division level (public convenience, outdoor advertising, payphones, washing bays) without KCC or Central Division enforcing the law to stop themâ€
The Commission, however, did not go far enough in its recommendations. We would have expected the Commission, for example, to recommend for the immediate termination of the UTODA contract which has already caused a sh1.9b loss to the City Council.
Furthermore, if the Commission of Inquiry’s investigations are to be taken seriously, then the Local Government Minister Maj Gen Kahinda Otafiire must ask the Police to investigate and prosecute all individuals, within and outside the council implicated in the theft and embezzlement of the city council revenues or in causing financial losses to KCC.