KCCA Commits Self To Pay Ex-Workers

2821 Views Kampala, Uganda

In short
Kampala Capital City Authority (KCCA) says it is ready to pay off all the remaining terminal benefits to its ex-employees. Last week court ordered the freezing of two KCCA bank accounts to force the Authority to explain why it has not fully paid the ex-employees’ terminal benefits amounting to Shs 6.7 billion although a partial payment had been made and it was left with a balance of Shs 1.5 billion.

Kampala Capital City Authority (KCCA) says it is ready to pay off all the remaining terminal benefits to its ex-employees.
The authority is however, quick to say that it needs to first carry out an exercise to verify the claimants.

KCCA commitment was contained in a written affidavit in reply by Senior Principal State Attorney Josephine Karugonjo, who was on Thursday responding to last week’s court order that froze its two main accounts held in DFCU and Stanbic banks.

Last week’s freezing of the two main accounts by court was projected to have KCCA explain why it has not fully paid the ex-employees’ terminal benefits amounting to Shs 6.7 billion although a partial payment had been made and it was left with a balance of Shs 1.5 billion.

Court in one of its orders gave KCCA seven days to seek a settlement agreement with the former workers or else court proceeds to order the transfer of the Shs 1.5 billion from their frozen accounts to that of the workers.

When the two parties met in court on yesterday before the Assistant Registrar in-charge of executions Isaac Muwata, Godwin Mulungi, the lawyer representing the ex-workers informed court that he was not ready to argue the case.

Mulungi explained that he had just been handed an affidavit in reply by KCCA lawyers and that he needed time to answer some of the issues there in.

Subsequently, court adjourned the matter to June 8 but the two KCCA accounts remain frozen.

The case arose in 1995 when at least 226 former KCC workers went to court over unpaid terminal benefits and they were awarded Shs 6.7 billion after being retrenched following a government policy. KCC made partial payment in 2001 but never paid the balance until the first court order was issued to that effect in 2005.

The responsibility to pay the balance was passed on from KCC to the new management of the city under Kampala Capital City Authority (KCCA).