The Uganda National Road Authority (UNRA), which is a government entity under the Ministry of Works and Transport is clearly not fit for purpose. The whole government is showing how it’s failing it’s governance, by not being solid and considering the costs of it’s operations. The Republic and their financial muscles are clearly not aligned. That’s why the State Budget isn’t only filled with deficit financing, but other parts of the state is run by it too.
UNRA director Allen Kagina is to blame her, but we know she has been directed and told to follow up on agreements in letters from the President. Presidential Directives are intervening and stopping a fair judgment of the tenders and the contracts signed. That’s why the whole blame cannot be put on her. As we have seen that the President has directed and told who is getting the bid. Therefore, the Ministry and UNRA has less powers.
That’s why the report published on the 6th September 2022 called: “REPORT OF THE COMMITTEE ON PHYSICAL INFRASTRUCTURE ON THE DELAYED PAYMENT TO CONTRACTORS, BY GOVERNMENT OF UGANDA, LEADING TO UNBEARABLE INTERESTS” is very important. That signals what is missing and how the reoccurring debt is appearing. The UNRA and Ministry of Works and Transport cannot compete. No matter how Gen. Edward Wamala structures or do his job, or even tries to configure within his means. The Presidential Directives and the current leadership structure is eating his ministry up alive. That’s why this report is earth shattering and shows how badly this is run.
The UNRA is becoming a loss-loss operation and the contractors are now losing money. They are losing money in such a way that the state has to pay with interests and add more costs. As they are already run on deficits. This is practically eating the roads and the supposed “integration” to markets, which the President always promises during campaign rallies.
Just read the quotes here… it is really tragic…
“On 4th May 2022, Hon. Richard Sebamala, MP, Bukoto Central in Masaka District raised a Matter of National Importance regarding budget suppression particularly in the Road Sector with its attendant accumulation liquidated damages to a tune of UGX. 334,000,000 per day in the case of debts accumulated by Uganda National Roads Authority(UNRA). The Rt. Hon. Speaker directed the Committee on Physical Infrastructure to investigate the matter” (Report, P: 2, 2022).
“The Sky Rocketing Interest Rates arising from Government’s non-fulfillment of its obligations to Contractors amounts to foreseen trivial costs to Government. It is improper for the Country to incur foreseen trivial costs to a tune of UGX. 235.6 million per day in interest charges” (Report P: 9, 2022).
“Failure to pay the arrears will continue to cause Government to incur trivial expenditures including interest expenses, idle equipment and reduction in the works by Contractors” (Report, P: 9, 2022).
“The Committee considers that MDAs, specifically Ministry of Works and UNRA are the main contributors to the deficit of the UGX 573.5 billion with accruing interest rate of 15% per annum, and the resulting interest charges amounting UGX 235.6 billion per day. The non-payment of Certificates arose due to the shortfall in funding and the 40% budget cuts across the board” (Report, P: 11, 2022).
You can really see the key aspects of report by just reading these few quotes. That says it all. It shows what the state does and how the UNRA is run. The Government have failed the Ministry of Works and Transport, and in-connection to that the UNRA as well. This is from the top-down who haven’t acted righteous. It isn’t the direct fault of UNRA director or UNRA itself. The Ministry of Finance and the State House should answer for their faults too. They haven’t looked into the numbers and what things has cost. The President has directed and ordered certain projects and taken out loans to build them too. That’s why the UNRA only trying to cope with the work. While the MoWT only has to follow up and do it’s bidding too.
That’s why the new debt and added interests is only making every project more expensive. The state is only adding more debt. While it should have ensured and finance the projects it already has. This shows the the failure of the state and how badly it is run. The UNRA is bankrupting itself. The state cannot afford it and doesn’t have fiscal funds to cover debts. That’s why it’s gaining even more debt as the time goes. The daily interests and costs should worry the state… because this is just bad or going to worse even. Peace.