Traders in Mbarara are accusing the Municipality, headed by Mayor Robert Kakyebezi of defrauding them of more than Shs 220million.
The traders were recently relocated by the mayor to Independence Park from the Mbarara Central Market to pave way for its redevelopment.
About 600 of the traders say they were asked to pay Shs. 380,000 to the municipality, to be allocated stalls at the Independence Park.
It however, emerged later that the money for relocation of traders was already provided for to a tune of Shs 75 million under the Markets and Agricultural Trade Improvement Project (MATIP), which is funded by the African Development.
Some traders say even after paying the money, they were not allocated the stalls.
The traders now want Mayor Robert Kakyebezi explain what the money they paid him was used for.
These have also gained support from other local leaders to demand for accountability from the Municipality leadership.
Imam Kajiko, the Katete Ward LC IV councilor, while speaking to Chimpreports termed the Municipal leaders as uncultured, bad-mannered and extortionist.
Traders say they were threatened to pay the money and when they asked for formal documents, they were given non-headed receipts.
Mayor Kyakyebezi however, denied the allegations when contacted but declined to discuss the matter further.
The market mall under construction in Mbarara town will cost 6.5 million dollars (UGX 22bn), a loan project from African Development Bank under the Markets and Agricultural Trade Improvement Project (MATIP).