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Contractors Default UGX 360m Revenue in Fort Portal

A report from the office of the Deputy Town Clerk, Bosco Rusoke, shows that 15 companies have in the past three years defaulted contracted revenue.
21 Oct 2019 13:24
Mayor Muhanga says part of the defaulted revenue would have gone to the completetion of the council chambers where over 1.5billion shillings is needed.

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Companies that were awarded tenders by Fort Portal Municipal Council have failed to remit more than 300 million Shillings.

A report from the office of the Deputy Town Clerk, Bosco Rusoke, shows that 15 companies have in the past three years defaulted contracted revenue.  

These include Dolucks Enterprises Limited which failed to pay 58 million shillings for hotel tax collected in the 2017/2018 financial year while MKRIB Investments Limited has since defaulted 46 million shillings revenue from Kabundaire Market in the same financial year.  

The other is hard Rock Technical Services that was contracted to collect revenue from roadside food vendors but failed to remit 32 million shillings.   

According to Rusoke, most of the defaulters have been served with court sermons while others have only been sent notices asking them to pay.  

Some of the contractors like Lumbert Kabiba of Dolucks Enterprises Limited and Joseph Kiiza of Globe World Engineering Services who failed to pay 10 million from street parking tender, says that since the issues are now in court, they will wait for the legal redress.  

The Fort Portal Mayor, Rev Willy Kintu Muhanga says that due to the defaulted revenue, they are unable to meet the public’s demand on service delivery because they are financially constrained.

He cites the poor state of roads like Maguru-Irata, Kacwamba-Harubaho, among others.   Also, the municipal council is seeking over 1.5 billion shillings for the completion of the municipal council chambers whose construction has dragged on for more than seven years.  

But Muhanga says that he is now going to do everything possible to avoid the recurrence of this situation and ensure that companies always make timely payments.   

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