UNRA Executive Director, Allen Kagina
Uganda National Roads Authority (UNRA) has revealed that Ugandan taxpayers are incurring interest of Shs250 Million daily on unpaid works and services carried out by contractors and suppliers, but this interest keeps on changing depending on the availability to clear up these debts.
UNRA Executive Director, Allen Kagina made the revelation while appearing before Parliament’s National Economy Committee, during the consideration of the loan request to borrow Shs324.922Bn for the construction of Laropi-Moyo-Katuna- Kamuganguzi Road Project.
This is after Denis Oguzu (Maracha County) asked Kagina to explain reasons behind the continued abandonment of road projects in Uganda and the interest accrued to the contractors.
Oguzu remarked, “UNRA continues to accrue interest because they aren’t doing something. How do these costs arise on Government? Is it because the Ministry of Finance is failing to meet their obligations? Because every day, costs are accruing, contractors are moblised, even that road Koboko-Yumbe that the Minister talked about, you took the contractor there, you deceived the West Nile people, the contractor has escaped, there is no one on ground. What is happening to this project, let us get real about this country. We can’t continue being in deceit and incur costs on Ugandans.”
In response, Kagina explained: “The interest comes as a result of the debt we have, the outstanding IPCs to contractors and suppliers. It changes because when we got first quarter, we paid off a little bit of the debt, but of course we accrue new debt. It is currently growing, but that also changes daily, but it is currently growing at Shs250M per day.”
