Madinah Tebajjukira
29 March 2009
Kampala — THE files of companies involved in irregular transactions with Kampala City Council (KCC), cannot be traced at the company registry, MPs heard on Friday.
The assistant registrar of companies, Humphrey Mugoya, told MPs on the local government accounts committee that some of the companies were not in their records.
According to the Auditor General's report on KCC land and revenue for the financial years 2000 to 2007, former mayor, John Ssebaana Kizito, allocated land adjacent to Kamwokya Mosque to Busunju Coffee Dealers, which Mugoya said was not in their records.
"I think you can see a possibility of this company not being in existence," said committee chairman Abdu Katuntu.
Mugoya also revealed that the original file for Sheila Investments, a company owned by businessman Hassan Basajjabalaba, was missing.
Sheila Investments was contracted by KCC to manage Nakasero Market.
By the time of the investigation, the company owed KCC sh817m in revenue arrears and sh174m to Uganda Revenue Authority.
Mugoya said another file for Bon Appetit Restaurant, which manages the KCC canteen, was also missing.
The restaurant owes KCC sh43m in rent arrears.
The file for Daks Uganda, which owes KCC sh96.37m in premium, could also not be traced, he said.
In the report, the Auditor General highlighted political influence in KCC land matters.
On the land adjacent to Kamwokya Mosque, the report said Ssebaana endorsed Busunju Coffee Dealers, whom the land was subsequently allocated to, instead of Health Management Consult.
The report observed that Ssebaana allowed Busunju to survey the land.
"The mayor endorsed Busunju Coffee Dealers on June 25, 2002, with instructions to the chief town planner to handle the matter and report to him," the Auditor General said.
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