Kampala, Uganda | THE INDEPENDENT | Mandela National Stadium is seeking 15 billion Shillings for acquisition of security equipment and to erect a fence.
The budget is revealed in documents submitted to Parliament’s Public Accounts Committee (PAC) –Central Government by the Stadium Managing Director Jamil Sewanyana.
The documents were demanded by PAC Chairperson Nathan Nandala following a revelation in the June 2018 Auditor General’s report that the Stadium had accumulated domestic arrears of 875.3 million Shillings.
PAC’s inquiry into the financial standing of the Stadium was also informed by the Director Privatization Unit in the Finance Ministry, Moses Mwase, who said that the Stadium had not declared dividends due to capitalization issues and had not been making profits.
He told PAC last month that consultations to bring a private developer on board have kicked off and that this would require funds to be availed by government for the Privatization Unit to carry out an analysis. Mwase said that they are looking at partnering with the Private Sector since there are no plans to sell the Stadium.
Sewanyana decries insufficient financial support from the Stadium shareholders including Ministry of Education and Sports and the Ministry of Finance.
Namboole Stadium is owned by a government company Mandela National Stadium Limited with two shareholders including the Minister of Education and Sports who owns 99% shares and the Minister of Finance with 1% Shares.
Sewanyana says that the Stadium is faced with financial hardships requiring funding of 15 billion Shillings.
Part of the funds required is 2.5 billion to erect a fence to protect the stadium’s land from encroachers.
According Sewanyana, Mandela National Stadium Limited is not able to generate these funds internally hence pushing for financial support from the shareholders.
The stadium also requires an allocation of 1.5 billion Shillings for renovations and regular maintenance of the stadium for a period of five years after which it shall have developed its internal capacity and be able to sustain itself.
“While the stadium has slowly improved it operations and able to meet its recurrent expenditure, it is not in position to generate sufficient funds to meet regular maintenance, insurance, high utility costs, refurbish and equip the conference halls,” reads part of the document.
The stadium management cites another requirement of 4 billion Shillings for acquisition and installation of safety and security equipment and spectator seats. MNSL cites lack of internal surveillance cameras, electronic ticketing system and robust fire fighting equipment and seats for spectators.
Another 3.53 billion shillings is required to pay National Social Security Fund –NSSF ( 604 million) and Uganda Revenue Authority- URA ( 2.93 billion) and others.
PAC is set to interface with the stadium management, Board of Directors and the Privatization Unit in the Ministry of Finance next week in regard to the financial standing of the stadium.