Shs1.5b city abattoir cash stolen monthly, says report

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Shs1.5b city abattoir cash stolen monthly, says report
Shs1.5b city abattoir cash stolen monthly, says report

Africa-Press – Uganda. A detailed intelligence brief to President Yoweri Museveni has indicated that the monthly Shs1.5 billion revenue which is collected from the city abattoir (Lufura) every month is not remitted to the coffers of the Kampala Capital City Authority (KCCA).

The brief states that the said money ends up in the pockets of some top officials in the Ministry of Kampala Capital City and Metropolitan Affairs and others from the directorate of the Internal Security Organisation (ISO).

The abattoir, which is located in the Industrial area, is one of the biggest animal slaughter premises in Uganda, used by more than 3,000 people daily, including people with butchery section, restaurant, mobile money section, vendors, and stationery.

Between 380 and 420 cows and 300 goats are slaughtered from this abattoir, according to both the report and traders who spoke to the Monitor.

Ms Dorothy Kisaka, the Executive Director of Kampala Capital City Authority (KCCA) agreed with the investigators’ findings, saying KCCA has never received a penny as revenue from that market.

Ms Kisaka told this newspaper that “we are finalising the process of implementing the presidential directive and taking over these markets. We have sat in various meetings where we have agreed with our ministry on the same.”

This publication understands that the chairperson of the Kampala District Land Board, Mr David Balondemu, and his board have intervened in the matter in accordance with the Presidential directive on city markets. Last year, the President instructed KCCA to takeover city markets. Mr Museveni based his decision on the legal guidance from Mr Balondemu, a city lawyer.

When contacted yesterday, Mr Balondemu said he was aware of the problems at the City Abattoir including the leadership crisis and accountability concerns.

He promised to study the matter and liaise with the KCCA boss to have all the issues resolved. “The people managing the abattoir must account for all the revenue collected from the vendors we resolve all the sticking issues in that facility,” Mr Balondemu said

“We are handling those issues. We also received information that some people have been collecting billions of shillings and not remitting a single coin to the government coffers,” Ms Balondemu said. “We are going to resolve all the ownership wrangles the same way we have issues at Owino Market.”

Last year, Mr Museveni ordered the cancellation of the land title of St Balikuddembe (Owino) market in Kampala. In a July 4 letter to the Minister of Lands, Ms Judith Nabakooba, Mr Museveni argued that market land is communal and cannot be claimed by individuals.

“Markets are a nursery to our low-income business beginners. They should operate there cheaply and when they are richer, they move out to more expensive operational bases. When you privatize it to the current traders what happens to future generations?’’ the President wrote.

The President’s directive came nearly a year after Mr Balondemu wrote to him seeking his direction after the Commissioner of Land Registration refused to cancel the market’s land title on the board’s orders.

“There is no viable explanation why the title in the name of SSLOA (Stalls, Space and Lock up Owner’s Association) has not been cancelled,’’ Mr Balondemu wrote in the October 21, 2021 letter.

The land title was issued on October 14, 2014. He added that the board had resolved that the land title would be reverted to KCCA as part of the President’s October 2018 order that all public markets be managed by the government as opposed to vendors.

The entire fraud is bred from the mismanagement of the abattoir leadership which is led by a committee that was instituted by Ms Minsa Kabanda, the Minister for Kampala Capital City and Metropolitan Affairs .

In the brief, investigators pointed out that some individuals are reportedly managing the fees collection but are unknown to KCCA.

The authorities, according to the brief, are charging Shs15,000 on each cow and Shs3,000 from the goat as opposed to Shs10,000 and Shs2,000 that is supposed to be charged respectively.

The dues collectors are also monthly obligations from each mobile money vendors, restaurant owners, Canteen owners, Meat butchers, cloth vendors, food vendors, and stationery owners to mention. “The total collection from the above categories is approximately Shs1.5 billion……..This money is collected by people who are not legally known and recognized by KCCA,” they said.

Source at the abattoir who preferred anonymity for his security told the Monitor that these issues have been going on as alleged in the report.

“We have never received any receipt from those people purporting to collect the market dues on behalf of KCCA. They have silenced each and every one, because whoever asks about it is threatened with arrests,” a source said adding: “[A clique of eight individuals] were charging us Shs15000 per cow until we fought for his overthrow two months ago, we are now paying Shs10,000, but for a goat, we are paying Shs3,000. They could use their fake company called Seven Hills and whoever questioned their leadership would be arrested.”

Lord Mayor speaks out

Lord Mayor Erias Lukwago yesterday blamed the entire confusion on President Museveni whom he said has declined to sign the Markets Bill, 2021, which was aimed at streamlining the markets and abattoirs inclusive.

“We wanted to put the management of the abattoirs under KCCA long time ago, but the previous executive director of KCCA, Ms Jennifer Musisi, frustrated us when she said that the abattoir is not among the entities under KCCA and left it in the hands of businessman man Hassan Basajabalaba. When we tried enacting an Ordinance recently, we were stopped and advised to wait for the law that will streamline the markets, a law which the Parliament passed but President Museveni declined to sign,” he said.

Mr Lukwago said the confusion is spearheaded by a clique that collects money and shares it with people he doesn’t know. “These people are using the loopholes of the law to do whatever they are doing. Right now, we are seeing groups masquerading and taking over after one another. Right now it’s the community imposed by the minister managing the abattoir,” he added.

Minister in the mix

In February 24 letter to the commandant of Kampala metropolitan police, Ms Kabanda said she had chaired a meeting which agreed on the transition of the abattoir management.

“The meeting also noted that this transition had been grossly mismanaged leading to an increase in unpaid utility bills. The meeting resolved to form a Special Committee to oversee the transition and to ensure efficient management until KCCA takes full control of the City Abattoir,” reads part of the letter.

The meeting further appointed a 10- man-committee which would manage the abattoir until ful transition.

The committee was led by Ms Grace Akullo, the director human resource and administration, Dr Sarah Zalwango, the assistant director medical services, Mr David Musunga, the deputy director gender and community services, Mr Kenneth Ruhweju, the manager security enforcement, and Mr Hannington Katumba, the veterinary officer.

Others are Mr Lindo Musoke, a market master, Ms Joan Nabakoza, the market administrator, Mr Ian Gumisiriza, the supervisor, Mr Isma Mubiru, and Hajji Muhamad Sekwayama who are both traders. None of the committee members was available for comment and the minister who put them in the leadership of the abattoir didn’t pick calls.

“The traders should be immediately informed of the following; that the status quo on rates (Cattle 10,000/-, goat 2,000/=) is maintained until the new rates are approved by Cabinet, traders are also required to pay for utilities such as water and electricity in per consumption. Ms Nabakooza Joan (the Market Administrator) will be the accounting officer for all the finances and shall maintain the essential staff until KCCA deploys the required personnel, that the deduction of 2,000/” as contribution to the vendors’ Sacco is hereby halted and that all vendors’ meetings should get clearance from your office. The purpose of this letter, therefore, is to ask you to pass the above information to the traders and to provide the necessary security to maintain law and order in the abattoir,” the letter added.

Some of the names in the committee are implicated in the intelligence brief to the President.

“According to our clear information, the supervisor of KCCA markets is Mr Moses Musimire,’’ the brief said.

“…all the money collected from Lufura abattoir is not known by KCCA and even the people who pay it, don’t know where it goes and what it does. We kindly call for your urgent assistance in this matter Your Excellency so that the above Lufura Vendors can fulfil their expectations,” the brief further reads in part.

Ms Kisaka said KCCA is the rightful manager of the all markets in Kampala, with the abattoir inclusive.

Background

On March 1, 2000, Mr Hassan Basajjabalaba had secured a 49 year lease from KCCA which mandated him to collect taxes on behalf of KCCA. On June 4, 2001, KCCA offered a 49-year lease to Mr Basajjabalaba at a fee of Shs600 million, according to media reports. He was supposed to be remitting a ground rent of Shs2.7m annually which was payable by two equal half yearly instalments in advance on the first day of January, and the first day of July in every year.

He was also to remit a monthly fee of Shs290 million to KCC which has since been changed to KCCA. In 2011, a section of meat traders under their association City Abattoir Traders Development Association evicted the managers that Basajjabala had hired to run the premises, whom they accused the management and hiking the dues. In November 2018, the Members of Parliament sitting on the presidential election, asked KCCA to compensate Mr Basajjabalaba and repossess the abattoir following outcry by the traders. Following this recommendation, the Cabinet, which was chaired by the President in November 2019, approved Shs80 billion for Mr Basajjabalaba’s compensation.

Mr Museveni in November last year issued guidelines directing KCCA to fully repossess the management of the city abattoir.

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