Kagadi leaders irked by govt's persistent delays in remitting funds

By Alan Mwesigwa | Wednesday, July 17, 2024
Kagadi leaders irked by govt's persistent delays in remitting funds
Geoffrey Mugisa, the Kagadi town council Town clerk showing our reporter the budget figures in his office in Kagadi | Alan Mwesigwa

District and town council leaders in Kagadi have slammed the central government for persistent delays  in remitting funds collected as local revenues.

The leaders say the delays, some taking a month, frustrate the local government effort to fulfill budgets and obligations.

Currently, a number of services providers such as garbage collectors, hotels for conferences, fuel stations have refused to work for Kagadi citing delays to get paid for services rendered.

Mr Geoffrey Mugisa, the Kagadi Town Council clerk, said since the new financial year began, they have not received any funds from central government.

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"These monies are collected by us using a digital system and it goes to Bank of Uganda, but year in year out, we continue having delaying to remit funds to us to enable us carry out our duties," he said.

"Since the new year started, we have not received any money, you see money on the account but you have no access until government sends back, so now garbage collectors, fuel stations and other services providers are hesitant to providing services to us."

The Nile Post can confirm that the government only this week started remitting monies for the current quarter.

Part of the delays was due to the President's refusal to assent to the Appropriation Bill that had to be returned to Parliament for re-allocation of up to Shs745 billion.

"People come to our offices asking what we are still doing in the offices, if we can't put their money to good use, garbage, road maintenance are the biggest issues we have," Geoffrey Businge, the Kagadi town council mayor, said

Yosiya Ndibwami, the district chairman, said locally-raised revenue that should serve the very people who pay it should not be taking long to remit.

Mr Mugisa said he was also at pains to understand why government allocates certain funds as conditional and others as non-conditional grants but only half or less than half is sent to the local governments.

"For instance, now we have Shs17 million as conditional grant and Shs60 million as non-conditional grant, but until the end of final year you realise only half is sent," he said.

"Where does the other money go>? It affects planning, because once it's allocated we budget for it, but actualization is not met."

The district adopted the digital system Elogrev where funds collected as local revenues is paid directly to the center and there after at their convenience government remits funds back.

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