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Deputy IGG Questions Lira City Council Over Delays in USMID-AF Projects

What you need to know:

  • A monitoring report from the Inspector General’s office indicates that work on the beautification of Numa grounds (tipper stage) and the repair of streetlights has yet to start, even though the USMID-AF program for the city is expected to conclude in two weeks.
  • Okiria gave the contractor until Tuesday next week to submit a detailed report on the project’s status and plans to meet the deadline, warning that actions would be based on the report’s content.

The Deputy Inspector General of Government has scrutinized Lira City Council over the slow progress of the Uganda Support to Municipal Infrastructural Development – Additional Financing (USMID-AF) projects.

Under cluster 2, Apac, Lira, and Moroto districts hired a single contractor to carry out the works. Lira City entered into a contract with the joint venture of M/S Al Nuaimi Group and Abubakar Technical Services to execute the construction of six roads and two parks, Coronation and Children’s Park, costing Shs. 35bn, from May 10, 2021, to August 9, 2022.

The project deadlines were extended from August 2022 to May 2023, and then a special dispensation was granted from November 2023 to the present. Despite these extensions, the project remains incomplete.

A monitoring report from the Inspector General’s office indicates that work on the beautification of Numa grounds (tipper stage) and the repair of streetlights has yet to start, even though the USMID-AF program for the city is expected to conclude in two weeks. Other projects, like the Children’s Park, are reportedly 95% complete, but landscaping, planting grass, and fixing the lake sand are still pending.

During a USMID evaluation meeting on Friday, Dr. Patricia Achan Okiria, the Deputy IGG, demanded an explanation from city leaders for the delays, questioning why funds should be returned to the treasury with incomplete work. As of June 12, 2024, Lira City Council had a balance of over Shs. 11bn for infrastructure in their USMID-AF MDG account.

Dr. Okiria gave the contractor until Tuesday next week to submit a detailed report on the project’s status and plans to meet the deadline, warning that actions would be based on the report’s content.

Project Manager Freddie Owiny attributed the delays to COVID-19, delayed release of contractual documents, and relocation of utility infrastructures such as UMEME and water pipes. He also blamed contractor incompetence and a weak contractual agreement that hinders contract termination.

Lira City Mayor Sam Atul expressed concerns about the competence of local contractors, calling for the government to engage capable individuals to design and implement projects for proper accountability.

USMID-AF is a five-year World Bank-funded program launched in the 2018/2019 financial year to enhance the capacity of selected municipalities and cities in local governments to improve urban service delivery.

Lira City Council received a total of UGX 61,572,708,829 from FY 2019/2020 to FY 2023/2024 for USMID-AF. However, some funds were returned to the consolidated fund at the end of each financial year, with not all of it returning in the subsequent year. For instance, Shs. 36bn was sent back to the Treasury, leaving the city with Shs. 35.9bn available for USMID-AF after some funds were returned.

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