Unpaid Contractor Threatens To Auction Three Kabale Local Gov’t Vehicles
The Kabale District Local Government risks losing three vehicles to an auction after it failed to pay a contractor a sum of 60 million shillings for services.
The vehicles in question include three Toyota Hilux Double Cabin pickup trucks belonging to different departments in the district.
The dispute began in the 2004/2005 financial year when Kabale District Local Government contracted Ibumba KB Services to construct footbridges in Rwamucucu and Kashambya Sub-counties, to improve the mobility of local residents.
Three Pickup trucks belonging to the office of the Kabale District Chairman, the office of the District Education Officer, and the office of the District Chief Finance Officer, may soon be sold off after the district failed to pay a longstanding debt to a contractor.
The dispute dates back to the 2004/2005 financial year when Kabale District Local Government contracted Ibumba KB Services to construct two footbridges in Rwamucucu and Kashambya sub-counties, to improve the mobility of local residents.
However, these sub-counties now fall under the Rukiga district, which was carved out of Kabale in July 2017.
One of the footbridges connecting the Habweera-Ntaraga market to Kitunga-Kabira and Ngoma in Kasyambya Sub-county cost 36 million shillings. The other footbridge connecting Rushebeya to Rwanjura, Burime, Kirundwe, Kihorezo, and Nyakagabagaba in Rwamucucu Sub-county, cost 45 million shillings.
On completion, the footbridges were commissioned by Adison Kakuru, the then Kabale District Chairman, and Sam Katehangwa, the Chief Administrative Officer at the time. However, Benon Kabagambe, the director of Ibumba KB Services, the contractor, claims that Kabale district only paid for the footbridge in Rwamucucu Sub-county and did not pay for the one in Kasyambya. Due to the district's failure to settle the outstanding debt despite his repeated requests, Kabagambe petitioned the court in 2013.
Richard Muhanguzi from Murambi Auctioneers and Court Bailiffs said that a Grade One magistrate's Court ruled in favor of Kabagambe in October 2021, ordering the district to pay the outstanding amount but the district authorities defied the court ruling.
The bailiffs obtained an order from the Kabale Chief Magistrate's court, ordering that the three vehicles be impounded and auctioned to recover the money if the district fails to pay its debts by 9th July 2023.
Fred Kalyesubula, the Kabale Chief Administrative Officer that they had received the court order and were studying it.
According to the court order, the vehicle attached to the office of the LC5 Chairman should be auctioned for a minimum of 18.2 million shillings, while the vehicle attached to the District Education Officer should start at 21.2 million shillings. On the other hand, the vehicle attached to the Chief Finance Officer is to be auctioned with a starting bid of 21.3 million shillings.
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