The Uganda National Roads Authority (UNRA) Executive Director, Allen Kagina, revealed that taxpayers incur interest of Shs250 million daily on unpaid works and services carried out by contractors and suppliers.
Kagina made this revelation before Parliament’s National Economy Committee during the consideration of a loan request to borrow Shs324.922 billion for the Laropi-Moyo-Katuna-Kamuganguzi Road Project.
Maracha County MP Denis Oguzu asked her to explain the reasons behind the continued abandonment of road projects and why interest to contractors continues to accrue.
In response, Kagina stated that interest changes depending on the Authority’s availability to clear these debts.
“The interest results from our debt and outstanding Interim Payment Certificates (IPCs) to contractors and suppliers. It fluctuates because we paid off some debt in the first quarter, but we also accrued new debt. Although it’s currently growing, the daily growth rate is Shs250 million,” she explained.
This development follows the December 2023 Auditor General’s report, which revealed that Uganda incurred fines totaling Shs2.2 billion through interest charges on delayed payments to project contractors.
The financial statements of both UNRA and the Ministry of Works and Transport recorded an outstanding payment of Shs804.26 billion.
According to the Auditor General, UNRA accounts for the majority of the accrued debt, worth Shs588.77 billion, while the Ministry of Works and Transport’s share stands at Shs215.49 billion.
