Government to mislay millions in MV kalangala premiums

The government stands to lose millions of shillings in high premium it is paying to insure the newly commissioned MV kalangala, source familiar with deal commented last year. The government of Uganda is spending millions every month as contribution towards the contractor insurance cover under which MV kalangala is covered.  The Director of transport in the works and transport ministry, Grace Itazi said that the 50m the government pays the contractor every month is a lump sum payment covering other costs not only necessarily insurance cover. The director refused to divulge information about what other costs are. This is done so as tourists can tour these areas since its one of the areas of birding activities in Uganda. When asked why the government had not contacted a local firm to provide an insurance cover to the new Vessel, Itazi said there were in the process. Sources said the government stands to lose a lot of money under the current arrangement with the contractor in case of any accident because the contractors insurance does not cover passengers on board, yet the vessel was specially designed to carry passengers. The modern vessel, which was constructed by Danmen shipyards of Holland, operates between Nakiwogo near Entebbe and Lutoboka.

In 2005, one of the Uganda’s few ships MV Kabalega sunk in Lake Victoria after a few days it was discovered that the vessels insurance cover had expired and hence there was no compensation for the ship. The government had to meet all the costs. MV kalangala is one of means used to reach some of the birds of Uganda. Lake Victorian where this vessel operates with MV kalangala tourists will be able to explore Uganda tours and have the memorable experience of the Uganda’s safaris.