By Abubakar Bin Siraji
ADJUMANI
Former Chief Administrative Officer (CAO) Adjumani district and now CAO Butaleja district has responded to accusations peddled on Social Media that he swindled Shs1.1Billion 6% URA Withholding Tax (WHT).
Addressing the media on the 28th September, 2024 in Butaleja, Mr. Oryono Grandfield Omonda said the malicious accusations are being peddled by a one Amacha Goli on behalf of Adjumani District Contractors Association (ADCA) on several media outlets.
Oryono says the 13 Companies complaining that he swindled their WHT actually had the taxes deducted and paid to URA amounting to Shs516,330,351 only and NOT the alleged UGX.1.1 billion.
ORYONO’S FULL STATEMENT
In the recent past months of this year 2024,there has been ferocious, malicious and fabricated allegations being peddled in the online media and social media pointing at the former District Chief Administrative Officer (CAO) Mr. Oryono Grandfield Omonda for having swindled 6% URA Withholding Tax.(WHT) amounting to 1.1 billion Shillings.
It’s on this note that I want to make the record clear for purposes of informing the aggrieved members of Adjumani District Contractors Association (if any), Adjumani communities, my colleagues in public service and the general public (fellow countrymen),”Mr Oryono stated.
The Office of the Prime Minister (OPM) is implementing the Development Response to Displaced Impact Project (DRDIP) in 13 refugee hosting Districts in Uganda including Adjumani. In a correspondent from office of the Prime Minister (OPM) dated 20th April 2023, the CAOs were provided with guidance on WHT by DRDIP beneficiary groups adopted through a letter from Uganda Revenue Authority (URA) on Ref URA/DTD/BP/151000598146 emphasising the provisions of Section of 118A (1) of the ITA which provides that; Community development groups who pay professional or management fees to a resident person will be required to withhold tax on the gross payment at a rate of 6%. 2. Community development groups who have been designated as withholding agents are required to withholding tax at a rate of 6% on the gross payment for a supply of goods or materials of any kind or services made to any person in Uganda where the amount or amounts paid in aggregate exceed on million for supply.
“It further states, ‘however, the obligation to withhold tax does not arise where the payee is exempt under Sections 118A (2) or 119 (5) of the ITA’.”
In Adjumani District, all the community development groups under DRDIP are registered with URA and have respective Tax Identification Number (TIN); and all companies contracted to benefit from DRDIP got 6% taxes deducted except those exempted by URA.
The complaining companies here listed below had their 6 % WHT deducted as stated here under:
- Agweru General Mechandise Ltd. This mentioned company was awarded five contracts:
1.1 Arinyapii Seed Secondary School
Contract sum: UGX. 758,636,000
WHT deducted and remitted to URA: UGX. 28,552,812
Remark: Return filed
1.2 Lewa Primary School
Contract sum: UGX. 679,216100
WHT deducted and remitted to URA: UGX. 28,232,921
Remark: Return filed
1.1 Alere Secondary School
Contract sum: UGX. 299,566,575
WHT deducted and remitted to URA: UGX. 17,958,615
Remark: Return filed
1.2 Bezza Al-Hazzi
Contract sum: UGX. 447,345,000
WHT deducted and remitted to URA: UGX. 24,700,961
Remark: Return filed
1.3 Fuda Primary School
Contract sum: UGX. 318,909,162
WHT deducted and remitted to URA. 18,959,650
Remark: Return filed
- Kate Contractors and Construction Company Ltd. This company had three contracts:
2.1 Kozeza Primary School
Contract sum : UGX. 509,547, 500
WHT deducted and remitted: UGX. 26,339,490
Remark: Return filed
2.2 Alere Secondary School
Contract sum: UGX. 866,803,247
WHT deducted and remitted to URA: UGX. 36,600,190
Remark: Return filed
2.3 Zoka Primary School
Contract sum: UGX. 240,264,600
WHT deducted and remitted to URA: UGX. 14,435,217
Remark: return filed
- Analog Investment Ltd. This company was given two contracts:
3.1 Gbayi Primary School
Contract sum: UGX. 333, 174,335
WHT deducted and remitted to URA: UGX. 0
Remark: Money UGX. 18,336,980 is in CPMC Bank Account for paying WHT.
3.2 Pachara Market
Contract sum: UGX. 550, 069,065
WHT deducted and remitted to URA: UGX. 30,783,915
Remark: Return filed
- Marlib Construction Company Ltd. This company was given three contracts:
4.1 Mungula Health Cenre IV
Contact sum: UGX. 643,900,000
WHT deducted and remitted to URA: UGX. 12,721,807
Remark: Cash of UGX. 20,118,309 meant to pay-off WHT is in CPCM Bank Account
4.2 Unna Primary School
Contract sum: UGX. 207,691,100
WHT deducted and remitted to URA: UGX. 12,464,340
Remark: Return filed
4.3 Sube Primary School
Contract sum: UGX. 240,805,000
WHT deducted and remitted to URA: UGX. 14.974,425
Remark: Return filed
- Lagua Hardware and General Merchandise. This company got two contracts:
5.1 Ofua Farmers Store
Contract sum: UGX. 229,754,693
WHT deducted and remitted to URA: UGX. 0
Remark: Funds UGX. 12,657,487 meant for WHT is in CPMC Bank Account
5.2 Biyaya Primary School
Contract sum: UGX. 318,995,923
WHT deducted and remitted to URA: UGX. 19.066,310
Remark: Return filed
- Marinyo Brothers
Amuru Primary School
Contract sum: UGX. 443,907,800
WHT Deducted and remitted to URA: UGX. 24,173,043
Remark: Return filed
- Equaroria Brothers United Company. This company was given two contracts:
7.1.Kureku Primary School
Contract sum: UGX. 223,880,036
WHT deducted and remitted to URA: UGX. 5,212,375
Remark. Return filed but funds was inadequate to fully pay WHT
7.2. Abbatour in Adjumani Town
Contract sum: UGX. 212,963,400
WHT deducted and remitted to URA: UGX. 0
Remark: Designed changed and contract adjusted to UGX. 315,059,242 which caused shortfall in payment of WHT. Additional funds expected to top-up the budget.
- Silver Courts Lounge SMC. This company was given three contracts.
8.1. Leanguru Community School
Contract sum: UGX. 318,000,000
WHT deducted and remitted to URA: UGX. 16,204,589
Remark: return filed
8.2. OPM Refugees Conference Hall
Contract sum: UGX. 543462,600
WHT deducted and remitted to URA: UGX. 29,372,437
Remark: Return filed
8.3. Pakele Army Primary School
Contract sum: UGX. 237, 681,000
WHT deducted and remitted: UGX. 6,307,073
Remark: Return filed
- Mavadi Multipurpose Ltd
Engineering Laboratory
Contract sum: UGX. 499,087,090
WHT deducted and remitted to URA: UGX. 29,944,333
Remark: Return filed
- Sokeys Reliable Power Uganda Ltd
Rende Primary School
Contract sum: UGX. 504,340,620
WHT deducted and remitted: UGX. 21,975,901
Remark: Return filed, and cash balance of UGX. 16,001,788 is in District Bank Account
- Palmart Commercial Link Ltd
Okusojoni Health Centre II Ward
Contract sum: UGX. 522,992,700
WHT Deducted and remitted to URA: UGX. 34,424,980
Remark: Return filed
- Awobi and Sons Ltd
Biyaya Secondary School
Contract sum: UGX. 373, 135, 684
WHT deducted and remitted to URA: UGX. 22,358,141
Remark: Return filed.
- Jamo contractors and supplies
13.1. Maasa Primary School
Contract sum: UGX. 222,751,989
WHT deducted and remitted to URA: UGX. 13,189,698.
Remark: Return filed.
13.2. OPD at Minia East
Contract sum: 451,458,541.
WHT deducted and remitted to URA: 27,377,159
Remark: Return filed
In simple arithmetic, the monies deducted as WHT of 6% and remitted to URA in totality is UGX. 516,330,351 only and NOT the alleged UGX.1.1 billion.
The above deductions were remitted to the coffers of national treasury, and not to the personal account of the CAO, Mr. Oryono Grandfield Omonda as alleged by the complainants.
The nature of transactions of DRDIP funds in between GOU and community groups is that funds are released by OPM through the District that credits bank accounts of community groups. The community group leaders are account holders to their group bank account.
The community groups upon receipt of funds, proceed to procure contractors, and thereafter effect payments to contractors inclusive of taxes to URA based on the level of works certified by an engineer deployed in the Districts by OPM. The CAO and his cohorts in the District remains with the oversight role to guide, supervise and monitor project implementation.
The malicious and fabricated allegations circulating in the online news channels and social media are workings of a few misguided/ misinformed native Madi who never made an effect to properly understand the mechanism of disbursement, receipt, control and expense of DRDIP funds. It’s an attempt to malign, blackmail, damage, character assassinate and destroy the person of the CAO, Oryono Grandfield Omonda.
This smear campaign is intended to tarnish my career, good name amongst the reasonable and right thinking members of the Ugandan society.
Let’s pray for their civility and sobriety.
I have now decided to make this information known to the public so as to erase confusion in the mind of the suspecting public who were not privy to the financial disbursement, management and accountability of DRDIP funds.
However, let me salute the nationalistic Directors of the following Companies who unreservedly observed and upheld our tax policy geared towards generating resources for national development.
They paid their WHT tax and are not complaining. These are; Nile Joint Operation Ltd, Hotel Zawadi, Tak and Friends, BLD Consult Ltd, Desert Breeze Hotel Ltd, Malanyo Uganda Ltd, Building Engineering Network, Mark Engineering Associates, Lebubu Brothers Ltd, Bukos Engineering Company Ltd, Ulto Engineering Ltd, Shataman Contractors Uganda Ltd,, Novelty Consult and Engineering Ltd, Neto Company Investment, JB United Civil Engineering and Building Contractors Ltd, Saed Technical Services Ltd,, Uganda Martyrs Construction Company Ltd, Leeward Investment Ltd, Aporu and Family Company Ltd, Didst Investment Company Ltd, and Inventive Capacity Consult.
It is in the best interest of justice, public awareness, confidence building, upholding the integrity of CAOs offices, transparency and being accountable in management of public resources while holding the position of CAO that I have shared this information.
Let’s hope that this clarification clears the air, builds public trust and my conscience is put to rest.
