Over 20 bank accounts of Gulu district local government were blocked last Thursday over an unpaid debt to former employees.
The accounts include the general account and many other project accounts.
The unpaid debt is about Shs4 billion for 89 parish chiefs who were reportedly laid off in 2002 based on lack of academic papers during the 1996-1998 restructuring exercise of employees who didn’t have qualification.
After being laid off, the 89 parish chiefs went to court and sued Gulu district local government.
Justice Remmy Kasule on May 15, 2012 delivered a ruling saying that the procedures under the leadership of the then district chairman, Late Col Ochora Walter was un procedural and ordered payment of Pension, gratuity, resettlement package with an accumulative interest of 18% which now has accumulated to about Shs4 billion from Shs2billion.
Mr Ojara Martin Mapenduzi, the Gulu district chairperson confirmed the incident and said all government transfer funds for smooth running of the district are unable to take place following the blocking of the accounts.
Even the International Environmental Day celebrations that was to held on Friday June 5, 2015 were postponed due to the current problem
Mr Ojara explained that they consulted the Ministry of Public Service and found that some of the employees have been receiving pension and gratuity from the government. He said they now want court to deduct funds for those who have been receiving pension and Gratuity.
“We have done our compilation with the Ministry of Public Service and when the pension and gratuity paid to them by government is deducted, Gulu will have to pay them around Shs400 million not 4 billion,” Mr Ojara said.
Mr Ojara said Gulu district is willing to pay the debt but court should accept and review their complaint.
