The Independent Uganda: You get the Truth we Pay the Price
Gulu, Uganda | THE INDEPENDENT | A report by the Auditor General has revealed how Gulu University forked out Shillings 527.5 million to pay accumulated interest to Chinese firm Chongqing International Construction Corporation (CICO) over delayed contract payments.
The University management entered a contract with Chongqing International Construction Corporation (CICO) on June 19, 2019, at a contract sum of 30.12 billion Shillings for the construction of the Gulu University Business and Development Centre.
According to the audit report released by the Auditor General Edward Akol for the financial Year 2023/24, two interim payment certificates totaling 2.3 billion shillings were submitted by the Company for payment. The report however revealed that the University had a one-year delay to pay the contractor, prompting an accrued interest of 527.5 million shillings the University had to pay.
Construction of the multibillion business complex commenced in 2019 and was meant to end by July 2023. The project sought to address the limited learning space and accommodate up to 6,000 students. Gulu University Public Relations Officer James Ojok Onono told Uganda Radio Network in an interview Monday that the University had enormous difficulties in paying the contractor due to delayed remittance of money from the government.
Onono noted that the government has been remitting money in phases adding that in some financial years, money was not remitted leaving the University unable to pay the contractor. According to Onono, the interests on the contract accrued between the financial years 2021/22 and 2022/23 when the University failed to get the money from the government forcing the contractor to abandon site.
“Our plea to the government of Uganda is that if the money can be sent at once, it would be better. The contractor can’t reliably work when payments are not being remitted,” he said.
Onono further revealed that the contractor has again threatened to leave site nearly a year after returning due to the delayed payments. Construction works at the site according to the site engineer stood at only 30 percent while only 20 percent (6 billion shillings) of the 30 billion shillings has been paid to the contractors.
Other issues raised by the auditor general included the payment of 18.9 million shillings by the University to suppliers who had supplier numbers, contrary to E-Cash payment guidelines while a total of 14.7 million Shillings advanced to employees during the financial year 2023/24 were not recovered contrary to the human resource manual.
In the Financial Year 2022/23, Gulu University failed to implement several key projects due to a budget shortfall of about 4 billion shillings. The University Council that financial year passed a draft budget of 53.7 billion shillings down from 57.7 billion Shillings passed in the financial year 2021/22.
In the Financial Year 2023/24, the University had an approved budget of 68.65 billion shillings out of which 68.52 billion shillings was warranted, resulting in a shortfall of 130 million shillings.
