The Kampala Capital City Authority (KCCA) is choking on a Shs 65.3 billion debt, arising out of accumulated domestic arrears and unpaid taxes.
According to the newly released auditor general's report for the year ended December 2018, KCCA accumulated domestic arrears to a tune of Shs 43.88 billion as at June 30, 2018 and failed to remit Shs 20.74 billion of Pay as You Earn (PAYE) and Shs 676.6 million in Value Added Tax (VAT) to Uganda Revenue Authority.
The report however shows that the institution had a budget shortfall of Shs 44.2 billion (15 per cent) in the year under review.
But the auditor general faulted KCCA over outstanding trade and other receivables amounting to Shs 44 billion and failure to collect Shs 433.8 million from city parking managers, Multiplex Uganda, as well as non-compliance of the contractor to contract terms.
The auditors also queried a payment of Shs 19.4 billion in legal costs on various cases filed against the institution..
The audit report also reveals that taxpayers risk paying Shs 714.3 million due to non-compliance of a contractor to contract terms leading to a nugatory expenditure in the form of interest on delayed payments
The report findings are awaiting scrutiny by the parliament's committee on Commissions, Statutory Authorities and State Enterprises (Cosase).