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Parliament Directs State House, Civil Aviation Authority to Enter Shs 5Bn Debt Swap

The Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises has ordered State House and Civil Aviation Authority (CAA) to enter into a Memorandum of Understanding for debt swap, to clear the outstanding receivables for both entities.

The committee chaired by Bugweri County MP Abdu Katuntu made the directive while interfacing with State House officials led by the Comptroller Lucy Nakyobe and CAA officials led by the Managing Director David Kakuba.

The committee members heard that both State House and CAA owe each other billions of Shillings.

According to CAA, as of 30th June 2017, the amount State House owed them for Security, the VIP Lounge services and the President’s Office had reached Shs5.5bn

State House on the other hand claims Shs. 9bn from CAA, which it lent them to purchase a security machine during 2007 CHOGM meeting in Kampala.

During the Committee meeting however, State House Comptroller Lucy Nakyobe said they would only be open to the debt swap if CCA are willing to clear the remaining balance.

“It is true that State House occupies space at CAA and we have been negotiating to try to come to an agreement on what area we should occupy and what we should pay vis a vis what they owe us,” she said.

 “In other words, they owe us some money but we don’t owe them; I am glad that this meeting has been called because finally CAA will pay State House.”

In response, the Managing Director CAA, Mr. Kakuba said they the debt swapping proposal was on the table but explained that the aviation body was hesitant to take for fear of future accountability problems.

In this meeting the committee directed both State House and CAA within three weeks and produce a written MOU stipulating how the outstanding debts are to be cleared.

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