Last week, the State Minister of Economic Monitoring, Peter Ogwang ordered a forensic audit in the Mbale City revenue collections for the last four financial years. The Minister attributed the poor revenue collection to corrupt officials.
Mbale City leaders have introduced new measures of collecting
In the previous financial year, the council suffered a shortfall
of more than two billion Shillings. It collected 900 Million Shillings out of the projected 3.5 Billion
Shillings. In the 2017/2018 financial year, only 2 Billion Shillings was
collected instead of the 3.9 Billion Shillings.
The failure by the city to raise the revenue has been attributed
to some taxpayers who evade taxes.
Last week, the State Minister of Economic Monitoring, Peter Ogwang
ordered a forensic audit in the Mbale City revenue collections for the last
four financial years. The Minister attributed the poor revenue collection
to corrupt officials.
Some of the initiatives that the City leaders plan to put in place
include awarding open tenders, issuing demand notes to all the companies and
organizations that operate within the city reminding them to pay local service
tax and attaching council staff to all the hotels and guest houses around the
city to ensure hotel fee is remitted.
The city council has also replaced the Mbale Central Market Master Fred
Mwambu with Annet Nandutu after he was allegedly accused of swindling money collected from the vendors.
On Tuesday, the city authorities awarded tenders openly to
successful tenderers who will manage revenue collections from the markets.
David Kyansanku, the Mbale City Clerk says that committees will be
put in place to monitor and evaluate all the payments made.
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According to Kyansanku, the Covid-19 outbreak affected businesses
in the city. He is however optimistic that they will achieve the projection which
will boost delivery of services.
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The Mbale City Mayor Kassim Namugali says that the failure by the
city council to raise local revenue as projected in the budgeting process has
impacted greatly on the service delivery of the city. He cited frequent power and
water outages in the market.
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Ali Madoi, a market vendor in Mbale Central Market says that the vendors
have been hesitant in remitting the revenues because of the failure of the city
authorities to offer services.
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Yusuf Nsubuga, the General Secretary of the Mbale Central Market promised
to mobilize the vendors to pay the local revenue.
Kirinya Ayubu is the URN Bureau Chief of Elgon/Bukedi Sub Regions . He holds a Bachelors Degree in Mass Communication from Islamic University in Uganda and a Diploma in Computer Science and Information Technology from the same University.