Kampala City Council has started paying primary and secondary school teachers' salary arrears for the month of September.
About two thousand teachers employed at Government-aided schools in Kampala threatened to go on strike if their salaries were not paid by the end of last week.
KCC Public Relations Officer, Simon Muhumuza, said the teachers are victims of a financial crisis resulting from the disappearance of 1.8 billion shillings from the Council's coffers.
Three top KCC officials, including the Town Clerk, James Segane and his deputy, Kewaza Muwonge, were implicated in the financial scandal and suspended from office for their alleged role in misappropriating the funds. Government froze the affected KCC accounts from which the money was reportedly embezzled, pending the conclusion of investigations into the matter.
Muhumuza says some of the money to pay the teachers' salaries has been received. He says the payment will be carried out in phases because the Council has insufficient funds to clear the 1 billion shillings owed.
Teachers' salaries are remitted by the Central Government and channeled through KCC to teachers in the 90 Schools in Kampala district. Muhumuza says KCC is relying on the Central Government to release the October salaries on time to avoid another standoff with the teachers.