Uganda:
Uganda: Parliament Cited in Sh229 Million KCCA Debt
Parliament and police make the list of Kampala City Council Authority's (KCCA) top debtors. The two institutions haven't paid Shs 321m in ground rent and the Lord Mayor Erias Lukwago has asked the Executive Director Jennifer Musisi to crack the whip, The Observer has learnt.
An investigation by The Observer indicates that Parliament has not paid Shs 229m in ground rent to KCCA for occupying the Parliamentary Building. And the police has not paid Shs 92m in ground rent for using the Central Police Station (CPS) building in Kampala.
A source at City hall told The Observer that KCCA now plans to move on these two defaulting institutions to force them to pay. KCCA's budget is largely financed from government grants, donor contributions and local revenue. However, local revenues, which account for 40% of the council's budget, are generated mainly from property taxes, ground rent, market fees, licences and vehicle parking fees.
When contacted, the Lord Mayor, Erias Lukwago said; "Yes, we demand over Shs 200m in ground rent from Parliament, and it is money that we expect them to pay as soon as possible so that we can also operate smoothly," Lukwago said.
"The Executive Director [Jennifer Musisi] should demand that money," he added.
Asked about the Shs 92m police debt, Lukwago said Musisi should start by demanding for this money from the law enforcers. In response, parliamentary spokesperson Helen Kawesa said the ground rent would be paid as soon as possible. Kawesa also advised KCCA officials to get in touch with the office of the clerk to Parliament and harmonise the issues.
"Clerk to Parliament will sort it out. If there is [overdue] rent, let KCCA come to Parliament and we sort it out. They should not shame us in public because these are matters we can solve amicably. Why is KCCA shaming us?" she asked.
Police was not aware of the ground rent arrears when contacted yesterday. Judith Nabakooba, the police spokesperson, said: "I have not heard about it [ground rent]."
She, however, promised to look into it. The debts have accumulated over five years. According to the KCCA director of legal affairs, Mike Okua, when a rent payer doesn't pay after receiving notification of what is payable, then a formal demand is lodged in or a publication of what is due in the newspapers. The other alternative, Okua singles out is the harmonisation in the evaluation courts.
Okua added that if all those stages are exhausted without registering compliance: "The law [Local Government Rating Act, 2005] allows us [KCCA] to bring an action in the court of law, and also get interest on the rent."
Uganda: Parliament Cited in Sh229 Million KCCA Debt
Parliament and police make the list of Kampala City Council Authority's (KCCA) top debtors. The two institutions haven't paid Shs 321m in ground rent and the Lord Mayor Erias Lukwago has asked the Executive Director Jennifer Musisi to crack the whip, The Observer has learnt.
An investigation by The Observer indicates that Parliament has not paid Shs 229m in ground rent to KCCA for occupying the Parliamentary Building. And the police has not paid Shs 92m in ground rent for using the Central Police Station (CPS) building in Kampala.
A source at City hall told The Observer that KCCA now plans to move on these two defaulting institutions to force them to pay. KCCA's budget is largely financed from government grants, donor contributions and local revenue. However, local revenues, which account for 40% of the council's budget, are generated mainly from property taxes, ground rent, market fees, licences and vehicle parking fees.
When contacted, the Lord Mayor, Erias Lukwago said; "Yes, we demand over Shs 200m in ground rent from Parliament, and it is money that we expect them to pay as soon as possible so that we can also operate smoothly," Lukwago said.
"The Executive Director [Jennifer Musisi] should demand that money," he added.
Asked about the Shs 92m police debt, Lukwago said Musisi should start by demanding for this money from the law enforcers. In response, parliamentary spokesperson Helen Kawesa said the ground rent would be paid as soon as possible. Kawesa also advised KCCA officials to get in touch with the office of the clerk to Parliament and harmonise the issues.
"Clerk to Parliament will sort it out. If there is [overdue] rent, let KCCA come to Parliament and we sort it out. They should not shame us in public because these are matters we can solve amicably. Why is KCCA shaming us?" she asked.
Police was not aware of the ground rent arrears when contacted yesterday. Judith Nabakooba, the police spokesperson, said: "I have not heard about it [ground rent]."
She, however, promised to look into it. The debts have accumulated over five years. According to the KCCA director of legal affairs, Mike Okua, when a rent payer doesn't pay after receiving notification of what is payable, then a formal demand is lodged in or a publication of what is due in the newspapers. The other alternative, Okua singles out is the harmonisation in the evaluation courts.
Okua added that if all those stages are exhausted without registering compliance: "The law [Local Government Rating Act, 2005] allows us [KCCA] to bring an action in the court of law, and also get interest on the rent."
