KAMPALA – Kazo District Woman Member of Parliament Hon. Molly Nawe Kamukama has called on the Ministry of Finance to prioritise the clearance of outstanding government payments owed to private companies and public corporations, warning that delayed payments are pushing businesses into closure.
Kamukama made the appeal during a parliamentary sitting in Kampala, where she raised concerns over the growing practice of government entities entering into service contracts with private companies and public institutions without settling their financial obligations.
She observed that several companies provide services to government agencies under contractual arrangements but are left struggling financially when payments are delayed for extended periods.
The legislator cited public institutions, including Uganda Broadcasting Corporation (UBC), among entities involved in government-related contractual arrangements, noting that failure to settle outstanding bills has created financial difficulties for service providers.
She warned that the situation has particularly affected private companies, with some being forced to shut down because of accumulated debts owed to them by government entities.
Kamukama urged the Minister of Finance to intervene and ensure that companies are allowed to recover money owed to them for services already delivered, including services provided to the Uganda Printing and Publishing Corporation (UPPC).
She argued that clearing the outstanding payments would enable affected businesses to resume normal operations, meet their financial obligations and continue contributing to the economy.
The Kazo legislator further proposed that once government settles the outstanding debts, the affected companies could pay their due taxes while government considers waiving accumulated interest.
She cautioned Parliament against encouraging a situation in which businesses fulfil their contractual obligations to government but are left financially stranded because of delayed payments.
Her appeal places renewed attention on the need for timely settlement of government arrears and improved financial relations between public institutions and private-sector service providers.
