Legislators sitting on parliament’s committee on Commissions, Statutory Authorities and State Enterprises (COSASE) have called for a value-for-money audit of the e-Citie system employed by Kampala Capital City Authority (KCCA).
The city authority contracted a foreign company TUCKSEE to provide the e-Citie system for 2.7 million dollars. The system is employed to electronically to manage city revenues.
COSASE has however criticised the fact that KCCA failed to collect withholding tax from the vendor of the system.
The Auditor General John Muwanga, in his report for financial year ending 2014, noted that KCCA was according to the contract compelled to pay withholding tax of 6% amounting to 130,000 dollars on behalf of the contractor contrary to the law.
When KCCA tried to amend the contract, the contractor lodged a complaint in the court of arbitration and on the 8th of June 2017 was awarded 211,000 dollars’ worth of withholding tax certificates and late payment costs of 23,000 dollars.
MPs on the committee reprimanded city officials led by the executive director Jennifer Musisi for negligently flouting local tax laws leading to loss of funds.
The deputy KCCA executive director, Sam Serunkuma, attributed the computation on a special bilateral agreement signed between Uganda and South Africa and the World Bank guidelines on procurement.
However, the MPs led by COSASE deputy chairperson Anita Among refused to acknowledge this response noting that national laws take precedence over trade rules and guidelines.
Musisi tried to argue that there was no loss of funds but was shot down by Among and Kasilo county MP Elijah Okupa, who insisted that any breach of the law leads to loss of money.
Written by URN