Audit report faults KCCA on management of Usafi market

KAMPALA. A Statutory Internal Audit report for the second quarter of FY 2017/18 has punched holes in the Kampala Capital City Authority’s (KCCA) management of Usafi market, calling for urgent intervention to avoid loss of revenue.

The report dated January 31, 2018, a copy of which Daily Monitor has seen, was compiled by Mr Canon Moses Bwire, the KCCA director of Internal Audit upon request by the executive director, Ms Jennifer Musisi.

The Audit sought to establish whether the current tenants in Usafi market are on the list taken over by KCCA, whether or not the vendors have KCCA allocation letters and whether or not the current tenants pay the KCCA monthly rent.

Usafi market was bought by government through KCCA in 2014 from Safinet (U) Ltd at a staggering Shs39b. All property in the market including shops reverted to KCCA.
However, the report shows that four years down the road, there are still inconsistences in the numbers of Lock Up shops, stalls and tenants.

According to the report, there is absence of both allocation letters and tenancy agreement, non-payment of monthly rent by several tenants, absence of a market master, subletting without approval and absence of some working tools for staff in the facility.

Although the market register from the KCCA director of gender, community services and production, Ms Harriet Mudondo as at May 31 2017 indicated that there were a total of 33 vacant Lock Up shops, the report found out that only 10 were found vacant during the field visit by the team from the internal audit directorate.

“…some Lock Ups/shops changed hands with and without KCCA’s involvement,” reads in part the report.
The report adds: “we noted that some Lock Ups have been closed for over a year and others being sublet, but no action is being taken”.

On November 17, 2016, Ms Mudondo appointed an allocation committee composed of six members to streamline activities in Usafi market for purposes of stimulating business growth.
The team, was among others supposed to; take stock of the current position in the market, reviewing all new application and ensuring all information is captured and matching applications with available stalls and Lock Ups.

Others were; allocation of stalls/lock Ups to qualifying applicants, publishing final allocations, handling complaints from vendors and publishing the list of entire market allocation.
However, the report notes that the committee had not yet published a list of final allocations and a list of the entire allocation.

The report further states that the allocation committee that was appointed by the director of gender was slow in carrying out the mandate entrusted to it.

In the report, Mr Bwire notes that some unscrupulous people are tarnishing KCCA’s image by charging exorbitant rental fees through sub-leases and denying the genuine traders the desired working space hence increasing the number of street vendors in the city.

Section 29 (1) of the KCCA Market Ordinance, 2006 stipulates that a person to whom a pitch, stall or shop has been allocated within a market shall not without permission of council, sublet that pitch, stall or shop.

Mr Bwire further stresses that the lack of key working tools like computers, a printer and the internet for KCCA staff in the market makes it difficult for them to access mails and other information technology related services and preparation of relevant data and reports.

According to information from KCCA’s directorate of revenue, Lock Ups in Usafi vary in rental fees according to their size. For instance, there are Lock Ups for Shs 360000, Shs288000, Shs188000, Shs90, 000 and Sh13000 per month while stalls go for only Shs 65000 per month.

The report recommends KCCA’s director of gender to take stringent measures against subletting, appoint a market master, strengthen enforcement measures for collection of monthly rent and recovery of previous arrears and issue tenancy agreements to all tenants.

Mr Henry Mutibwa, the chairperson of Usafi market acknowledged the fact that there are no tenancy agreements but he revealed that KCCA’s allocation committee is processing them.

“All these problems will be no more because KCCA wants all operations in Usafi to be streamlined. For instance, although there are still some manipulative middlemen, subletting has reduced. We are hopeful that when all operations are streamlined, business will move on normally,” he said.

But Mr Erias Lukwago, the Kampala Lord Mayor, said that the problems plaguing Usafi market needs a comprehensive audit, arguing that there is more than the eye meets.

“I have received a number of complaints about the operations of that market. My team has come up with a bill which will be presented to council when we resume so that we can handle the issue of city markets since there is no legal framework governing them,” he said.

Mr Lukwago further revealed that he has received reports of fresh ownership wrangles over Usafi market by city businessmen, but he didn’t disclose their names.

Mr Peter Kaujju, the KCCA director of communication couldn’t be reached for a comment.
But Ms Beti Kamya, the Kampala Minister, acknowledged receipt of the report and she said that she would take action on the queries raised.
Usafi Market sits on 22 plots of land, which make 6.11 acres of land at Kalitunsi, Mengo-Kisenyi in Kampala.

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