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KCCA choking on Shs 65bn debt

 Eng. Andrew Kitaka, KCCA acting executive director

Eng. Andrew Kitaka, KCCA acting executive director

The Kampala Capital City Authority (KCCA) is choking on a Shs 65.3 billion debt, arising out of accumulated domestic arrears and unpaid taxes. 

According to the newly released auditor general's report for the year ended December 2018, KCCA accumulated domestic arrears to a tune of Shs 43.88 billion as at June 30, 2018 and failed to remit Shs 20.74 billion of Pay as You Earn (PAYE) and Shs 676.6 million in Value Added Tax (VAT) to Uganda Revenue Authority.

The report however shows that the institution had a budget shortfall of Shs 44.2 billion (15 per cent) in the year under review.

But the auditor general faulted KCCA over outstanding trade and other receivables amounting to Shs 44 billion and failure to collect Shs 433.8 million from city parking managers, Multiplex Uganda, as well as non-compliance of the contractor to contract terms.

The auditors also queried a payment of Shs 19.4 billion in legal costs on various cases filed against the institution..

The audit report also reveals that taxpayers risk paying Shs 714.3 million due to non-compliance of a contractor to contract terms leading to a nugatory expenditure in the form of interest on delayed payments

The report findings are awaiting scrutiny by the parliament's committee on Commissions, Statutory Authorities and State Enterprises (Cosase). 

Comments

-1 #1 kabayekka 2019-01-09 06:12
With the recent outbreak of Cholera in the International City of Kampala, how can one blame this heavily indebted city council administrative organization?
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0 #2 Lakwena 2019-01-10 09:57
In other words, how indebted are other urban authorities in this country?

E.g. last night (NTV) reported that: while the Electoral Commission has no money to effect elections in the 6-newly created Districts; Mrs. M7, Janet Katahah was telling her audience in Ruhama that Mr. M7 has ruled this long, because he was chosen and sent by God.

What a pile of crappy BS!

Because of the ineptitude, moral and financial bankruptcy, corruption and impunity under Mr. M7: there is almost nothing to be proud of in this Country called Uganda, where everyday we wake to a depressing news.
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