KCCA loses billions in projects

Kampala Capital City Authority (KCCA) is likely to have lost sh140b between 2016/17 and 2017/18 financial years, according to a report by the capital city public accounts committee (PAC).

The report indicates that a leakage of at least sh66b could have resulted from road construction contracts undertaken in August 2015 (lot 1-6).

According to the report, the road works that were initially estimated to cost sh92b were later varied to sh158b, which PAC says led to leakage of KCCA funds, through the issuance of overpriced contracts. "Up to sh65b was lost as it was never anticipated expenditure," the report states.

While presenting the report at a press conference held at the Lord Mayor's Palour in Kampala, the committee, chaired Bob Kabaziguruka, said a lot of funds, especially in the road sector, were misallocated, something he said may affect service delivery.

The report also indicates that KCCA lost billions of shillings as a result of payment for the procurement of some private property for the contractor, China Railway Seventh Group, who were contracted to improve some junctions in the city.

DOUBLE PAYMENT
PAC also noted incidents of double payment in some contracts and that one such project under Lot 2 involved Energo Project, when the directorate of engineering and technical services failed to provide the necessary guidance and technical services during the procurement process for design update and construction of roads.

In the process, says the report, KCCA paid for the cost of designing roads while the same item had been catered for in the main contracts.

PAC observed that contrary to the rules under the Public Procurement and Disposal of Public Assets Act provision, there were persistent imprudent contract variations under which KCCA does not obtain value for money.

The report cites the road works on Bakuli market lane to Lungujja, where the cost for the extra works of 0.6km "was un- explainably hiked to an exorbitant rate, attracting a payment variation of an extra
sh11b". The report says sh550m was lost on Kiziri road in Nakawa Division, under similar circumstances, while sh928m was lost on Kasaalita road in Banda.

YOUTH FUND
Out of the sh3.3b government disbursed to KCCA for the Youth Fund revolving facility in 2011, sh200m remains accounted for to date, according to the report.

Kabaziguruka called upon Parliament to intervene in the matters arising from the report. The Lord Mayor, Erias Lukwago, said his office would follow up the matter.

CONTRACTORS SPEAK OUT
When contacted, an official from Sterling, who worked on Kiziri road, said they signed a bidding contract with KCCA and there is no way they could go against what was signed.

A receptionist at the Energo Project told New Vision that the managing director was not in office at the time.

KCCA RESPONSE
The KCCA spokesperson Daniel Muhumuza NuweAbine, said the executive director, Dorothy Kisaka, has contacted the Auditor General to have a special audit so that the institution can ascertain whether the contractors exaggerated the prices.