Parliament has asked Government to cancel all private leases that were issued on Uganda Railway Corporation (URC) land.
Parliament said the processes through which these private leases were acquired on public land were flawed and should be cancelled for land to return back to URC.
Parliament also asked Government to budget for shs69.52 billion that is needed to pay Uganda Railways for the sale of Nsambya land and in three months table a treasury memorandum on the Uganda Railway operations.
The demands by the Parliamentarians follow a report from the Committee on Commissions Statutory Authority and State Enterprises (COSASE) on the Operations of the Uganda Railways Corporation.
Presenting the report, the COSASE chairperson, Joel Ssenyonyi said that over time, different district land boards in Kampala, Jinja, Mbale, Gulu, Nwoya, and Uganda Land Commission have created illegal leases on URC land.
He reported that efforts by URC to recover its land have been futile and this has made it difficult for URC to recover its land.
The Committee recommended that all illegal leases on URC land should be canceled and the individuals responsible for issuing the illegal leases be held responsible.
The Committee also recommended that URC should come up with clear mechanisms on how to lease its land so that the appropriate value can be ascertained.
The committee revealed the irregular purchase of four locomotives in 2021 at shs48 billion. They noted that the locomotives have been packed ever since they were purchased since they were not fit for purpose.
“The URC workers interfaced with the committee and revealed that the locomotives were imported without knowing that they were too long for the triangles and not able to turn,” said Ssenyonyi.
The committee also reported irregularities in the procurement process of the locomotives. They noted that the locomotives which were eight years old cost shs48 billion yet the market value of locomotives that are six years old is at shs36 billion.
The committee recommended that the Ministry of Works and Transport and the Individual involved should take responsibility for the failure to follow government policy on the procurement of equipment.