By; Francis Lubega
The Chairman of the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) Abdu Katuntu has identified the concession agreement by government with UMEME as defective and unreasonable.
The legislators on the committee have today criticized the UMEME concession for having a clause permitting the power distributor to withhold payments to Uganda Electricity Transmission Company Limited (UETCL) in case any government institution had a debt covering at least 60 days.
The matter came to light after UETCL told MPs yesterday that it was unable to pay its 5% transmission levy to the Rural Electrification Agency (REA) to a tune of 54bnshs due to the actions by UMEME.
The Corporate and Regulatory Management at UMEME, Blessing Nishaho while briefing the committee on the controversial agreement clause said that UMEME has since September 2016 withheld 153bnshs from UETCL
Katuntu however, notes that such an agreement promotes financial indiscipline and a loss to Ugandans taken by reckless government lawyers.
MPs also inquired as to why government institutions were responsible for the rising debt to UMEME that currently stands at 35bnshs and according to Nishaho, 84 government institutions like hospitals, Universities and Ministries are the ones holding UMEME funds.
The secretary to the treasury Keith Muhakanizi suggested that all government institutions must resort to YAKA.
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