Fort portal municipality has increased its parking fees collection from Shillings 3.3 million in the last five months to Shillings 17 million each month.
The Secretary Fort portal Municipal Finance Committee, Eunice Habomugisha, says they registered the increment in parking fees collection after expelling Globe World Engineers Uganda Limited, which had been contracted to do the job and replaced it with municipal staff.
The Fort Portal Mayor, Rev Willy Kintu Muhanga, says they decided to kick out the contractor after realizing he was cheating them in addition to non-remittance of funds. URN spoke to Muhanga on how they have been to increase the parking fees collections.
//Cue in: "Reasons ziri nkaisatu
Cue out… council kali kataito."//
Fort Portal municipality contracted Globe World Engineers Uganda Limited last year to manage parking fees collections. However, towards the end of the financial year in June, the municipality discovered that the contractor was using unauthorized receipts on grounds that he had paid the council Shillings 3.3 million.
For instance, between January and February this year, Joseph Kizza, the Director Globe World Engineers Uganda Limited presented receipts indicating that he had paid Shillings 5.4 million to the municipal account in Housing Finance Bank.
But Clovis Kalenzi, the Senior Assistant Town Clerk South Division, says the money was not reflected on the division bank statement. This forced the Town Clerk Fort Portal Municipality, Deo Ndimo to terminate the services of the company for breach of contract and forgery.
Also, it was indicated that by June this year, the company owed the municipality Shillings 12 million, which the director declined to pay insisted that he had already cleared. After realizing that his contract wouldn't be renewed, Kizza sued the municipal council for none remittance of the Value Added Tax to Uganda Revenue Authority - URA for over five months in line with the
Court then stopped the municipal council from awarding the contract of street parking to any other contractor until the matter is resolved. But Muhanga says as they battle the contractor in court, they deemed it lawful to continue collecting the parking fees, adding that they have seen benefits from doing the job themselves. He also observes that there is no law that stops them from collecting revenue as the municipal council.