GULU: Gulu City is choking on unpaid debt of Shs3.8 billion. The money is meant for the payment of utility bills like electricity and water supplies for the various offices, allowances for elected leaders, and fuel, among others.
Alfred Okwonga, the Gulu City Lord Mayor, says that the unpaid bills accumulated over the last five months following the failure by the Ministry of Finance to remit the city’s operation funds within the specified periods.
Okwonga added that the problem relates to the Ministry of Finance’s cutting of the budget allocation for Gulu City for the financial years 2021–2022 from 3.8 billion to 491 million schillings to be shared between the two divisions.
Patrick Oola Lumumba, the Bardege-Layibi Division Mayor, says that the failure to remit funds to them has also greatly affected garbage management, road construction work, hygiene and security, and grounded field operations due to the lack of allowances.
Moses Otimong, the Gulu City Clerk, admitted on Wednesday that the crisis is hampering service deliveries, paying of service providers, sitting allowances for councilors, purchasing of vehicles for new departments, road works, payment of lost court cases, and inspections of public facilities, among others.
Otimong, however, explains that on Tuesday, the Gulu City leaders met with the Ministry of Finance and requested a supplementary budget of Sh3.8 billion to address the challenges since the money is in the Bank of Uganda account but cannot be spent by the city.
In response, the minister of finance said that within one month, they would present Gulu City’s request to parliament for approval. Otimong said that they will also revise their budget to 3.8 billion shillings.
By the close of December last year, Gulu City collected revenue worth 1.4 billion Shillings, and as of January this year, it had collected 1.6 billion.