Mbale council accounts frozen over Shs156m debt

The High Court in Mbale District has frozen the municipal council’s bank accounts in a bid to recover Shs156m the local government owes its former contractor, Buharera Investments Limited.
It is alleged that the municipal authorities contracted the company to collect garbage and compound maintaince at the composite site on August 1, 2015, but failed to pay.
Daily Monitor has learnt that two years ago, the municipal officials agreed to pay the money in instalments but failed to honour their promise.
This prompted the contractor to sue the council, and on November 6, the company secured a court order to attach the accounts.
“The garnishee order granted on November 6, and is hereby made absolute. All money amounting to Shs146m plus Shs10m for the costs of this application due to the judgment debtor from garnishee, Housing Finance Bank account and KCB Bank of the said judgment debtor, shall be paid to the decree holder/judgment creditor directly on Buharera Investments (U) Limited’s bank account,” the order, signed by the court’s deputy registrar, Ms Lilian Mwandha, reads in part.
Mr Paul Batanda, the town clerk, confirmed the development on Friday, but declined to divulge details.
Mr Yasin Wabomba Kawanguzi, the council’s deputy speaker, said they have petitioned the Resident Judge to overturn the decision because the council is in financial crisis.

Cash crisis
“The registrar errored in issuing the order without putting a number of factors into consideration,” he said.
Mr Wabomba said in the Housing Finance account, government had deposited more than Shs50m to run government activities.
However, he added that efforts to ensure that the debt is fully paid are underway.
According to a civil servant, who preferred anonymity to speak freely, said they do not have money to pay for utility bills, garbage collection, court costs and damages, among other expenses.
Mr Kassim Madagi, a youth councillor, blamed the council leaders for the mess.
He said the council did not have money to pay the contractors because local revenue collection is mismanaged.
However, Mr James Kutosi, the council spokesperson, said the court’s decision was based on wrong facts.