The government plans to pay 500 billion shillings it owes to construction companies that work for the Ministry of Works and Transport.
Ramathan Ggoobi, who serves as Permanent Secretary and Secretary to the Treasury, met with these construction companies. He promised the money would be paid before this budget year ends.
He admitted the payment delays were caused by bad planning and budgeting. The government wants to fix these problems to prevent similar delays next year.
"The issue of accumulated arrears arose due to poor financial planning and unprotected multi-year commitments. However, we are putting measures in place to ensure that such delays do not happen again," Ggoobi said.
Waiswa Bageya, the Permanent Secretary of the Ministry of Works and Transport, attended the meeting. He told the contractors that everything previously handled by the Uganda National Roads Authority had been moved to the Ministry and thanked them for staying patient despite money troubles.
Ggoobi asked contractors not to charge extra penalties on late payments to make the process easier. He warned them not to sign contracts unless they check that money exists in the budget first.
The Uganda National Association of Builders, Suppliers, and Engineering Contractors expressed concern about the impact of late payments on construction businesses. Their president, Kiara Binta Nkuranga, signed a statement asking the government to speed up payments, which would help contractors pay banks and suppliers.
Contractors hope the government keeps its promise. This would ease their money problems and help build more infrastructure across Uganda.
Ramathan Ggoobi, who serves as Permanent Secretary and Secretary to the Treasury, met with these construction companies. He promised the money would be paid before this budget year ends.
He admitted the payment delays were caused by bad planning and budgeting. The government wants to fix these problems to prevent similar delays next year.
"The issue of accumulated arrears arose due to poor financial planning and unprotected multi-year commitments. However, we are putting measures in place to ensure that such delays do not happen again," Ggoobi said.
Waiswa Bageya, the Permanent Secretary of the Ministry of Works and Transport, attended the meeting. He told the contractors that everything previously handled by the Uganda National Roads Authority had been moved to the Ministry and thanked them for staying patient despite money troubles.
Ggoobi asked contractors not to charge extra penalties on late payments to make the process easier. He warned them not to sign contracts unless they check that money exists in the budget first.
The Uganda National Association of Builders, Suppliers, and Engineering Contractors expressed concern about the impact of late payments on construction businesses. Their president, Kiara Binta Nkuranga, signed a statement asking the government to speed up payments, which would help contractors pay banks and suppliers.
Contractors hope the government keeps its promise. This would ease their money problems and help build more infrastructure across Uganda.
