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Shs 13bn withdrawn from KCCA on court orders

A total of Shs 13 billion has been withdrawn from the bank accounts of Kampala Capital City Authority (KCCA) on court orders.
 
KCCA acting treasury director, Julius Kabugo, says the money was withdrawn from the institution's account in 2017 after the issuance of garnishee orders. A garnishee order is a legal notice the court issues that allows the creditor to collect the amount from the debtor's bank account.

KCCA headquarters

Kabugo says the money was part of the compensations that the institution is supposed to pay as result of lost litigations. He says a huge volume of legal cases is one of the challenges that the institution is facing. Kabugo says creditors usually target the KCCA's revenue account where taxes are deposited.

"Ultimately, this affects implementation of various planned activities at the beginning of the financial year," he says.    

Kabugo says KCCA has many litigations in courts which are costly. For instance, during the 2018/19 financial year, Kabugo says the legal directorate has requested for Shs 40 billion shillings to be spent on litigations.

"The cost of litigation is very high due to inherited legal cases. Every day we have more cases coming up," he says.
When Kabugo made the disclosure during a council meeting on Friday, he was tasked by the Lord Mayor Erias Lukwago to furnish councillors with details of when the garnishee orders were issued, when the money was withdrawn and who are the creditors.

The council was discussing the institution's budget for financial year 2018/19. The council resumes today to continue scrutinising the budget.

Comments

+2 #1 JonSs 2018-04-09 15:25
I can’t believe what I’ve just read. How did KCCA get into litigation battles in the first place. Isn’t it because of failure to follow legislation and due process?

If there are gaps in process, then management and the executive have to work round the clock to formulate policy to cover those gaps in order to protect taxpayers money.
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+1 #2 Robert Atuhairwe 2018-04-09 15:55
Officials must be earning big from the ring
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+2 #3 mungu 2018-04-09 20:29
Check those court orders. majority if not all might be forgeries made with complicit from KCCA operatives.

This is Kampala, this is NRM. this is no age limit Paka last
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0 #4 Lakwena 2018-04-10 10:43
In other words, this is enjawulo (kickback and sidekick) syndicate!
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