Authorities in Mbale City have taken the drastic step of suspending the collection of fees related to street parking, loading and offloading, and advertising, citing alleged corruption among officials. The decision comes in response to contractors consistently failing to remit monthly local revenue collections to the city council account. James Kutosi, the spokesperson of Mbale City, urged the public not to pay taxes until further notice, emphasizing that those collecting dues during this period are doing so illegally.
Efforts to implement digital revenue collection through the Integrated Revenue Administration System (IRAS) faced challenges, with authorities claiming manipulation of the online and mobile application platform. Some contractors, in collaboration with division officials, reportedly ignored directives to use the electronic payment system, opting for manual receipts instead. The suspension aims to address these irregularities and streamline the revenue collection process.
Mbale City’s move follows a pattern of recurring issues in local revenue management. Despite the implementation of electronic systems, some individuals continued to collect cash payments, raising concerns about transparency and accountability. The council is supposed to have all collected funds remitted directly to a single bank account in the Bank of Uganda.
The decision to halt local revenue collection has sparked debates about the financial implications for the city. Critics argue that the city’s operational expenses may face strain, while others emphasize the need for a forensic audit to address the root causes of corruption and irregularities. Mbale City Mayor Cassim Namugali highlighted the shortfall in revenue collection, with only Shs320 million collected in the last quarter out of the projected Shs1.5 billion.
This isn’t the first time Mbale City Council has suspended revenue collection due to corruption concerns. Last year, street parking fees were suspended amid ongoing conflicts between contractors. The city has faced challenges in achieving its revenue projections, prompting calls for better management and oversight.
