Kampala City Council warned yesterday that work "will come to a standstill unless its accounts are allowed to operate soon." In a press statement issued by Principal Public Relations Officer Simon Muhumuza, the City Council warned that the current standoff between City Mayor Nasser Sebaggala and Town Clerk Ruth Kijjambu would halt all activities by Friday.

The feud has resulted in the freezing of five KCC accounts and Mr Muhumuza said the lack of cash is already hurting service delivery.

He said among others, services like collection of gabbage, transportation of dead bodies, payments to mortuary workers, have been affected. In the two page statement Mr Muhumuza said all council departments and divisions were idle over lack of operational funds despite a recent council resolution directing Mayor Sebaggala to reopen the accounts.

"Division town clerks have warned that their operations will come to a halt by Friday if no money is paid. They are not able to pay casual workers, they lack fuel and are unable to pay their contractors," Mr Muhumuza said at City Hall yesterday.

Source of trouble

He added, "This situation has arisen as a result of the banks' refusal to honour payments authorised by the council giving reasons that the ministry of Local Government has not cleared them".

Sources inside KCC said payments worth Shs2 billion have not been effected and creditors were threatening to sue the institution over non-payment. "Five bank accounts were frozen three weeks ago by the mayor. Management and KCC workers have resolved to petition the Minister of Local Government separately on the question of not being able to access council accounts," Mr Muhumuza said.

He said the education directorate can't do any inspection due to lack of funds despite the reopening of schools for third term.

Legal interpretation

Meanwhile, the wrangle over management of the institution's bank accounts between Mr Sebaggala and Ms Kijjambu has prompted the Local Government Ministry to seek guidance from the Attorney General's office. Local government commissioner in charge of local councils' development Mr Patrick Mutabwire said the legal arm of the government must guide the two offices to ensure smooth running of the city.

"We have written to the Attorney General's office seeking the interpretation of the High Court's decision to block the redeployment of the Kampala Town Clerk," Mr Mutabwire also the acting Permanent Secretary said yesterday.

Last week, police blocked mayor Sebaggala's attempt to forcefully evict Ms Kijjambu from office.