MBARARA CITY, February 24, 2025 – Mbarara City Council is at risk of losing Shs 240 million in revenue due to a memorandum of understanding [MoU] signed between the Council and Kawaida Investments Limited.
During a recent council meeting, councillors claimed that the former Town Clerk, Assy Abirebe Tumwesigire, along with other technocrats, signed a blanket MoU allowing Kawaida Investments Limited to permit MTN Uganda to paint the central market as part of its advertising and marketing strategy. However, the MoU did not specify any financial details.
Ben Twahirwa, the councillor representing workers in Mbarara, stated that members were concerned about the insufficient information provided by the Southern Division Town Clerk, particularly regarding the bank statements related to the central market’s design and painting.
“Procedurally, the council passed the resolution, and as Speaker, you gave us the terms of reference, one of which was for the Southern Division Town Clerk to provide us with information about the MoU in a joint committee. Since then, no sufficient information has been provided. So, what can we do?” Twahirwa said.
Betty Tigefera, the councillor for Kakoba ward, questioned the Town Clerk about why the MoU was signed in 2023, but councillors were only notified in 2025.
“They were not even ashamed. The MoU was signed in 2023, the market was painted with MTN logos and designs by the end of 2024, and yet no councillor was notified about this deal until we discovered this fraud in 2025. Why?” Tigefera asked.
She further criticised the MoU for being signed without specifying any monetary amount.
“Town Clerk, you say everything is okay when there is an MoU signed with no money. An MoU is supposed to be signed between Client A and the City Council at a cost, yet you bring it here and say everything is fine. I have never seen such an MoU since I joined this council in 1996. This shows the level of fraud and mismanagement the Town Clerk has exhibited, and we must fight hard against it,” Tigefera added.
She pointed out that the money outlined in the MoU had not been deposited into any of the city council’s accounts, demanding that Town Clerk Justine Barekye present the bank statements in the next committee meeting for scrutiny.
“We insist that we want those bank statements in the coming committee meeting, and if you refuse to provide them, we will demand a forensic audit to fully establish how much money is being stolen through this MoU,” Tigefera said.
Eunice Asiimwe, a councillor representing female persons with disabilities [PWDs], also questioned why the Town Clerk was preventing councillors from accessing the bank statements.
“If we can see the bank statements for the property rates of this city, how special are the central market statements with Kawaida Investments that you won’t show them to us? If people trusted us with leadership, who are you to deny us access to the bank statements of this central market painting deal?” Asiimwe asked.
The Speaker, Bonny Tashobya, also requested that the Town Clerk provide the statements to the councillors for further examination.
“This council has powers, as outlined in the Local Government Act and the rules of procedure, to receive any documents they request. Therefore, I fully support the councillors’ demand. They should be given those bank statements for accountability purposes,” Tashobya said. “We want to know if the central market was painted by MTN, where is the MoU? How much money was paid? Is it renewable? And if so, for how long?”
Javira Muhangi, the Operations Manager for MTN Western Region, confirmed that MTN Uganda is branding all markets across the country, not just in Mbarara.
“While I can’t comment in detail, I can confirm that MTN Uganda is branding markets across the country, not just Mbarara. The MoU was legally signed between Kawaida Investments Limited and MTN, so we don’t have any dealings with Mbarara City Council. Next week, on Tuesday, the top executives who approved the budget for the market branding will be at the central market for a physical check,” Muhangi explained.
The MoU signed between Mbarara City Council and Kawaida Investments Limited is for a period of 5 years, with Kawaida Investments remitting Shs 20 million per month. Over the 5-year period, the total payment amounts to Shs 1.2 billion. However, this money has not been deposited into any of the city council’s accounts, and councillors are questioning who the sole beneficiary of the MoU is.
On her part, Justine Barekye, Town Clerk of Mbarara City, directed the principal internal auditor to conduct a special audit report regarding the alleged matter.
“Let me engage the principal internal auditor so that he can produce a special audit report, which will be presented to this honourable house for further follow-up and management,” Barekye said.
She also clarified that all other departmental technocrats are answerable to the Town Clerk, urging councillors not to pressure them.
“All division staff, as well as my staff here, are answerable to me. I request that when there is a problem, you compel me to conduct a special investigation, as I have a fully-fledged audit unit to investigate issues where there is discomfort or mistrust. Please utilise my office, and do not compel the division town clerks to answer to the city council,” Barekye stressed.
Meanwhile, Sam Muganda, Assistant RCC for Mbarara City North, vowed to re-arrest the Mbarara City Commercial Officers who had stolen Emyooga funds.
“I hear you want to reinstate some of your staff members who were interdicted because the law compels you to reinstate them after completing their 6 months of interdiction. Please do so, but be assured that, as security, we will re-arrest them for stealing Shs 30 million for boda-bodas and Shs 50 million for the leaders. We still have the exhibits with us at the police,” Muganda noted.
https://thecooperator.news/mbarara-city-saves-shs-3-billion-on-two-road-projects/
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