Jinja, Kakira Sugar in row over rent
May 16, 2009
JINJA district administration and Kakira Sugar Works are in a disagreement over unpaid ground rent.
By Frederick Kiwanuka
JINJA district administration and Kakira Sugar Works are in a disagreement over unpaid ground rent.
The Kakira sub-county chairman, John Kamau, said the sugar factory agreed to renovate the Jinja children’s hospital and the district was to meet 50% of the cost.
“Kakira then deducted the cost from the ground rent up to 2006, which the district opposed, since the agreement was between Kakira and the LC5 chairman, not the district,†Kamau said.
Grace Adong, the Jinja deputy chief administrative officer, noted that Kakira owed the district sh171m by the end of 2007.
A district council meeting in August, 2007 resolved that the sugar factory pays sh39m per year, effective 2003. In a subsequent meeting of district executives on September 14, 2007, it was discovered that the district did not have any documentation regarding the agreement.
Onemsmus Tuyiringire, a lawyer advising the council, said Kakira disregarded the local governments’ laws to evade payment.
Kakira’s company secretary, S.K. Ayengar, said they had agreed with Kamau and Basakana to avoid conflicts with their partners.
He argued that the functions of the district executive as in section 17 of the Local Government Act do not include renovation of a government or Madhvani hospital.
JINJA district administration and Kakira Sugar Works are in a disagreement over unpaid ground rent.
The Kakira sub-county chairman, John Kamau, said the sugar factory agreed to renovate the Jinja children’s hospital and the district was to meet 50% of the cost.
“Kakira then deducted the cost from the ground rent up to 2006, which the district opposed, since the agreement was between Kakira and the LC5 chairman, not the district,†Kamau said.
Grace Adong, the Jinja deputy chief administrative officer, noted that Kakira owed the district sh171m by the end of 2007.
A district council meeting in August, 2007 resolved that the sugar factory pays sh39m per year, effective 2003. In a subsequent meeting of district executives on September 14, 2007, it was discovered that the district did not have any documentation regarding the agreement.
Onemsmus Tuyiringire, a lawyer advising the council, said Kakira disregarded the local governments’ laws to evade payment.
Kakira’s company secretary, S.K. Ayengar, said they had agreed with Kamau and Basakana to avoid conflicts with their partners.
He argued that the functions of the district executive as in section 17 of the Local Government Act do not include renovation of a government or Madhvani hospital.