KCCA on Spot for Alleged Misallocation of Shs12bn Roads Loan

The Committee on National Economy is dissatisfied with Kampala Capital City Authority’s decision to utilise a Shs12 billion roads loan for staff capacity enhancement and retooling and community mobilization. 

As officials from the authorities within the Kampala Metropolitan area appeared before the committee chaired by Hon. John Bosco Ikojo on Tuesday, 04 July 2023, concerns were raised over the consistent allocation of borrowed funds for non-road related purposes, prompting a call for a review of the financial decisions made by KCCA.

According to the programme for nine local governments of Greater Kampala Metropolitan Area, Kira, Mukono, Nansana, Entebbe, Makindye-Ssabagabo, Wakiso and Mpigi, US$608.66 million will be used for urban development meant for roads, drainages and, urban planning services among others.k6gf lol

However, for KMP’s allocation of US$130 million, over Shs800 million will be used for retooling, Shs400 million for community mobilization,  shs920 million for staff capacity building, Shs300 million to undertake a citizens satisfaction survey , Shs750 million for governance which involves  setting up a KCCA legal library,  project oversight by the council and  procuring a Hansard for the authority and Shs 250 million for grievance management among others.

The move by KCCA drew criticism from Members of Parliament who questioned the necessity and appropriateness of using the funds meant for road development for capacity building and training.

Bugabula South Representative, Hon. Maurice Kibalya, expressed his disappointment with the repeated allocation of significant funds for retooling activities. 

He argued that such expenditures appeared to be excessive and called for a more prudent approach to financial management.

Buliisa County MP, Hon. Allan Atugonza, raised the issue of the lack of consistency and planning within the city’s authorities.

Referring to a previous meeting with KCCA officials, he pointed out that a sum of Shs12 billion allocated for capacity building, required reconsideration.

“If we are telling people that we do not have money for compensation and here we are building the capacity of staff to increase productivity, the same staff that managed the different projects, I find it a wastage,” he said.

Bukooli North County Member of Parliament, Hon. Stephen Mugabi Baka highlighted the recurring pattern of allocating borrowed funds for capacity building in each financial year.

The KCCA Executive Director, Dorothy Kisaka, said that although roads are critical, in order for the authority to perform well and get other road projects and funding, there is need to enhance capacity of staff. 

“We are not diverting funds from road maintenance to capacity building but the entity needs staff whose strength is boosted.  We would like to see the loans performing even better,” she said.