Kampala Capital City Authority (KCCA) is facing closure over a Shs27m debt, a new financial report indicates.
The report from finance directorate tabled on Wednesday indicates that Uganda Revenue Authority (URA), National Water and Sewerage Corporation (NWSC), National Social Security Fund (NSSF) and UMEME, are piling pressure on KCCA to pay the money it owes them.
According to the report, URA for instance wants KCCA to Shs8b in pay as you earn for its employees and NWSC is threatening to stop supplying its services.
Responding to the report, Lord Mayor Erias Lukwago and opposition city councillors blamed the huge debts on President Yoweri Museveni who halted taxes on some businesses.
“We are facing problems because of Mr. Museveni’s politics. He told taxi drivers not to pay monthly fees and yet KCCA was getting a lot of revenue from this business,” explained Moses Katambu, councillor representing Central division.
Lobbying for more funds
Last week,over 200 city councillors from five divisions met President Museveni, trying to lobby for more funds for KCCA.
The councillors accompanied by Kampala minister Beti Kamya met the President at his farm in Kisozi, Gomba district.
The councillors want KCCA to get Shs1trilion next budget up from Shs337 billion, the city receive this financial year.
Kamya recently told PML Daily that the city contributes 70 percent to the GDP, adding that in order t improve on social services, KCCA budget should increase.
Bruhan Byaruhanga, Kyambogo University councillor, also said once more funds are injected in the different projects, it reduce unrest especially among the youth