Jennifer Musisi, the Kampala Capital City Authority (KCCA), Executive Director was on Wednesday morning grilled over the US$2.75m about9.9bn) contract signed with an international to manage street lights.
Musisi and other KCCA officials were appearing before the Parliament Committee of Statutory Authorities and State Enterprises (COSASE) to answer queries raised in the Auditor General’s report of 2013/14 regarding the said contract.
The report reveals that KCCA committed itself to pay 6% amounting to US$133,255 of withholding tax, on behalf of the contractor which is contrary to the provisions of Income Tax Act.
MPs demanded to know why KCCA revised the percentage of withholding tax paid by an international firm from 15% to 6%.
In defense, Musisi said KCCA’s actions were guided by the World Bank that dictated on the Procurement guidelines.
She revealed that the contractor was hired to provide software to be used for revenue payment of taxi operators, collection of market dues, which software code, the Authority is in possession.
However, MPs wondered whether the special contract was above the laws of Uganda.
It is worth noting that after the Auditor General’s report, KCCA revised the contract by issuing an addendum.
In the revised addendum, KCCA demanded the contractor to provide a system to manage public transport at a cost.
However, the revision in computation of the contract by KCCA angered the contractor, who opted to refer the dispute for arbitration (TUCKSEE VS KCCA) who filed a claim for an aggregate sum of US$ 291,753 in Arbitrations Tribunal.
The report prepared by John Muwanga, the Auditor General found more rot at KCCA, with Shs74.54m s advanced to a supervisor, Prisca Asiimwe on October 4th 2013 for the Kampala City Festival, but she disappeared with the money. KCCA acknowledged the theft before MPs revealing that Asiimwe’s investigations were instituted by CIID and the suspect arraigned before the Anti-Corruption Court for trial.
She was convicted and sentenced to a fine of Shs4m or a two year imprisonment. She was ordered to pay Shs72.5m to KCCA, but to date, she only deposited Shs1.5m to KCCA Festival Account.
KCCA officials added that they have withheld Shs22m from her gratuity entitlement as part of the recovery.
