UGANDA, Mbale | Real Muloodi News | Mbale City Council has taken the significant step of suspending the local revenue collection related to street parking, loading and offloading, and advertising due to suspected corruption among officials.
The decision was announced by Mr James Kutosi, the spokesperson of Mbale City, citing the failure of contractors to remit monthly local revenue collections to the council account.
“This suspension is necessary as those responsible for collecting money from utilities, such as markets and parks, are not ensuring the funds reach the city treasury,” explained Mr Kutosi.
He urged the public not to pay these taxes until further notice, cautioning that any local revenue collection attempts for the Mbale City Council during this period would be deemed illegal.
Mbale City had previously introduced plans in 2021 to implement digital revenue collection, leveraging the Integrated Revenue Administration System (IRAS) to minimise leakages and enhance revenue.
However, reports indicate that the IRAS is being manipulated by certain officials, and some contractors, in collaboration with division officials, have continued manual collection methods in defiance of the electronic payment system directive.
Mr Kutosi emphasised that the council expected all revenue collected to be remitted directly to a designated bank account, as seen in other local governments using electronic systems.
He expressed concern over the failure of the system in Mbale City, despite successful implementations elsewhere resulting in doubled revenues.
The suspension also sheds light on irregularities in the manual collection process, where individuals collecting dues issue chits instead of official receipts, potentially contributing to financial mismanagement.
Commenting on the situation, Mr Steven Masiga, the director of Makerere University, Mbale branch, pointed to the council’s internal issues, alleging the awarding of contracts to close relatives and friends.
He stressed the need for the city to streamline its operations to avoid financial strain and potential disasters resulting from mishandling core sources of local revenue.
Mbale City Deputy Speaker Abdullah Magambo blamed the chaos in revenue collection on city technical authorities and expressed concerns that the suspension could lead to further financial losses, impacting operational expenses.
Ms. Harriet Mutonyi, a retired accountant, called for a streamlined revenue collection process to prevent ongoing fights and corruption, emphasising the importance of development.
The city’s mayor, Mr Cassim Namugali, revealed that the council had only collected USh320m in the last quarter out of the projected USh1.5b, indicating a significant shortfall. This recent suspension follows a similar move in the previous year, highlighting ongoing challenges within Mbale City’s revenue collection system.
In 2021, the former Minister of State for Economic Monitoring, Mr Peter Ogwang, ordered a forensic audit of local revenue management in Mbale City, responding to accusations of mismanagement in the central market and under declaration of revenue.
The current suspension underscores the persistent issues facing revenue collection in Mbale City, signalling the need for comprehensive reforms.
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