Kampala — Government will lose up to Shs294.9 million every day in form of fines from the contractor if the Kampala Flyover Project is not rolled out on time as a result of the land dispute, the Uganda National Roads Authority (Unra) boss has said.
Ms Allen Kagina, the Unra executive director, yesterday appearing before the Parliament's Committee on Commissions, Statutory Authorities and State Enterprises (Cosase), said the dispute over the affected land for the flyover might delay the project.
"The contract is running, we have at the moment given the contractor land to start but we must in the shortest time possible acquire more land to give him, so he has not charged [fine] us yet," she added.
Preliminary works on the Shs224b project started early last month, and is expected to end in 36 months.
Any delays, according to Kagina, will attract $81,000 (Shs294.9 million) daily in form of fines.
"It is anticipated that when a contractor is given commencement he must have access to the land. Every delay means that he won't work and when he doesn't work, the contract requires that he charges us," Ms Kagina said. The committee chaired by Kawempe South MP Mubarak Munyagwa wondered whether prior to the signing of the contract, this was not envisaged, to the extent that the project commenced before actual acquisition of land.
The discussion came after the MPs found that there was unlawful expenditure by Unra amounting to Shs150b, in the financial year of 2015/16. Ms Kagina explained that the internal reallocation expenditure was made to save government from huge losses, despite being a direct breach on the law.
The Public Finance Management Act criminalises the practice as illegal, and punishable by sacking.
The committee tasked Unra officials to present a schedule of expenditure relating to the mischarge.
It was discovered that a number of alterations had been irregularly made in the budget, all relating to huge sums of money.
Ms Kagina said the alterations were occasioned by inadequate budget support. She said in the year under review, Unra was given Shs2.09 trillion out of the Shs2.6 trillion required.
The budget shortfall, Ms Kagina said, caused the alterations especially in the face of priorities.