The Uganda Civil Aviation Authority (UCAA) is but to signal tenancy agreements with cargo dealing with corporations, ENHAS and DAS as they await a choice by the Chief Government Valuer.
The authority’s Director General, Fred Bamwesigye made this revelation whereas assembly Members of Parliament (MPs) on the Committee of Commissions, Statutory Authorities and State Enterprises (COSASE) on Wednesday, 10 July 2024.
The committee is scrutinising the Auditor General’s report of the UCAA for the monetary 12 months 2022/2023.
In the report, the Auditor General famous that whereas the UCAA allotted area on the new cargo terminal to ENHAS and DAS, no tenancy agreements have been signed.
“Without formal tenancy agreements, this denies the authority authorized grounds upon which to invoice and acquire income. I suggested the accounting officer to expedite the formalisation and regularisation of the tenancy of those two corporations to allow the authority implement rents due and different attendant obligations,” learn the report partially.
UCAA’s Finance Director, Hassan Musinguzi defined that the competition is within the new hire determine of US$15 per sq. metre following a valuation by the Chief Government Valuer.
“When they [ENHAS and DAS] occupied in 2022, we gave draft agreements which determine they contested and at that time, we sought steerage from Chief Government Valuer who lowered the worth from US$15 to US$8.
Musinguzi added that, ‘we disputed that as a result of the earlier determine was US$7. We can not have an increment for the brand new amenities of US$1 solely’.
He mentioned that the 2 dealing with corporations additionally disputed the US$15 and appealed.
“However, they’ve concession agreements. We billed the businesses and MENZIS paid on the outdated price of US$7 as we look ahead to additional steerage from the chief authorities valuer,” Musinguzi mentioned.
UCAA’s Director General Fred Bamwesigye justified the increment of hire saying that the brand new cargo centre eases the enterprise of the businesses.
“We requested the Chief Government Valuer to evaluate however when he returned the determine, it was disappointing and we couldn’t settle for. We have a gathering with the Chief Government Valuer and the businesses and we would like the valuer to offer us valuation based mostly on how the brand new amenities eases their companies,” mentioned Bamwesigye.
This prompted Committee Chairperson, Hon. Medard Sseggona to query the parameters utilized by the Government Chief Valuer to cut back the hire quantity.
“Can you share with us the valuation from the Chief Government Valuer and the ultimate returns as a result of it’s actually disturbing. In the meantime, on what phrases are they [ENHAS and DAS] occupying? They mustn’t have moved from the outdated to the brand new with out having agreed on the quantity,” mentioned Sseggona.
He added that after the committee opinions the required paperwork, a choice will likely be taken, which can embrace interfacing with the Chief Government Valuer.
“We will resolve whether or not the Chief Government Valuer comes right here to inform us the way you worth as a result of there may be what we name a margin of error, however a margin of error can not go to US$7,” Sseggona mentioned including that, ’the Chief Government Valuer is an inside authorities officer who guides you if you end up negotiating; nothing stops you from charging even US$30 so long as you aren’t charging beneath what the federal government valuer has returned’.
Hon. Yusuf Nsibambi (FDC, Mawokoto County South) identified that the legislation doesn’t mandate the Chief Government Valuer to repair costs for cargo dealing with providers.
“You can do it independently with the businesses otherwise you exit to hunt additional steerage, which is okay. You can not return to the valuer to evaluate; you can not return to the one that gave a decrease determine,” he mentioned.
The new Cargo terminal is a self-contained facility roughly, 6,700 sq. metres and has capability of 100,000 tonnes with parking apron, landside and airside entry roads and cooling amenities.
According to the allocation, EHNAS and DAS occupy 80 p.c of the cargo terminal constructing.
