The board of trustees of Nakivubo War Memorial Stadium has asked government for a bailout to pay tax arrears they owe Uganda Revenue Authority (URA).
State minister of sports Charles Bakabulindi told parliament on Tuesday that the stadium cannot raise sh484 million in unpaid taxes. Nakivubo Stadium was closed on July 19 2016 over unpaid taxes accumulated since 2013, and is currently being run by URA in order to analyse its revenue flow
Presenting a statement on the closure of Nakivubo before the house presided over by the deputy speaker Jacob Oulanya, Bakabulindi said that while the board and URA had agreed they deposit sh100m so they can continue managing the facility, they have no source of funds to raise the amount.
Bakabulindi explained that before 2009, the board was able to raise revenue from development partners following the signing of a series of Public/Private partnerships arrangements with potential developers which is no longer the case.
“The stadium management had committed to pay URA sh21,500,000 per month which was being collected from park yard market before it was gutted by fire but this is no longer forthcoming, which resulted into management failure to remit funds to URA,” said Bakabulindi.
He stated that that the major source of income at the time when the memorandum of understanding was reached with URA was the park yard market which was gutted by fire several times thus denying a definitive revenue source earmarked for servicing of the tax obligations.
He blamed KCCA for the delay in approving redevelopment plans submitted by Nakivubo stadium and their partners, which has stalled an expected new source of revenue. Without the approvals, Nakivubo cannot engange the partners to help resolve the tax issue.
Bakabulindi said that is why the stadium is appealing for a bail out from the government so that URA writes off a the current tax arrears.
However, this was opposed by the Member of Parliament for Kumi Municipality Silas Aogon who said that the administrators of national institutions and facilities have made it a habit to mismanage them and in turn ask for bail outs.
A new board of trustees that manages Nakivubo has been appointed by Bakabulindi and will work for two year tenure 2016 to 2018.
The chairman of the board is Godfrey Mabirizi, the vice chairman is Charles Egou with Fred Kateregga, Hajjat Minsa Kabanda, Ahmed Bogere Masembe, Junior Sembatya, Boniface Oryema, Fariday Mayanja and Yusuf Mukoka as board members.