Breaking

Uganda Management Institute Struggling With Bad Debts

According to Uganda Management Institute, only 2.4 billion Shillings is recoverable, out of the outstanding receivables balance of 7.8 billion Shillings from student debtors recommended by institutions.

Audio 2

The Public Accounts Committee of Parliament has faulted Uganda Management institute over laxity in recovering debts amounting to 4.5 billion Shillings. The institute instead proposed to write-off the debts, arising out of non-payment by several institutions sponsoring students for training.

According to Uganda Management Institute, only 2.4 billion Shillings is recoverable, out of the outstanding receivables balance of 7.8 billion Shillings from student debtor's recommended by institutions.

The debtors include United Nations, Kampala Capital City Authority, Ernest and Young, Bank of Tanzania, Norwegian Fund, Ministry of Local Governments, British High Commission, Umeme, Ministry of Finance, GIZ and University of Cape Town among others.

UMI Director General James Nkata says that the institute is struggling to recover the money from the debtors adding that they have recruited an officer specifically to recover the debts and are considering the services of a private firm for the same task.

//Cue in: "We have done…

Cue out:.. them to court"//

Nkata was leading a team from UMI to respond to queries embedded in an audit report for the year ending June 2015.

However, Gerald Karuhanga, the Vice Chairperson of the Public Accounts Committee questioned why UMI was writing off the debts yet the companies listed are financially able. Karuhanga calls for fresh efforts to recover the money.

//Cue in: "So do you realize…

Cue out:…be written off"//

The committee however tasked UMI management to provide evidence that the institutions have not paid and that this money is not lying elsewhere. Jessica Ababiku, a member of the committee also queried whether UMI is not using a lot of money to recover the debt in vain.