Sylvia Nankya, Kampala.
UGANDA Investment Authority (UIA) boss Dr. Maggie Kigozi was briefly detained at Parliament yesterday to explain why she flouted procurement rules in the awarding of the contract for the development of the Kampala Industrial and Business Park in Namanve.
Kigozi, together with the UIA procurement specialist and other officials, were released at 3:00pm after recording statements with investigators.
The contract, worth sh88.2b, is meant for the development of roads, drainage, and a parking yard and is yet to be awarded to Spencon-Sterling joint venture.
The committee on statutory authorities and state enterprises yesterday discovered that there was no competition in the procurement process, with only one bidder evaluated.
UIA officials informed the committee that eight companies had shown interest but only five were pre-qualified to bid.
However, only two submitted bid documents and one was found to have a defective bid security, they said.
“Why didn’t you cancel the procurement process after realising that there was no competition?” asked Cosmas Mafabi (NRM).
Elijah Okupa (FDC) noted that Spencon had delayed the completion of the Northern Bypass, and that the Awoja Bridge, which it constructed last year, had already collapsed.
“There is a total mess in the industrial park, not only with the personnel but also with the procurement procedures,” Okupa said.
“After discovering that Spencon was alone, you should have written to the World Bank asking for the restart of the whole process,” argued Okupa.
MPs were also surprised to learn that Kigozi sought a “no objection” letter from the International Development Authority to enable her to proceed with the award of the contract, despite an ongoing value for money audit on the business park building.
The price for the construction of the building, which Spencon is constructing, rose from sh790m to sh2.1b without any reason being given.
It was established that there were no bills of quantities for the building in the award of the tender to Spencon.
The committee observed that Kigozi disrespected her contracts committee’s warning to wait for the results of the value-for-money audit before executing the agreement between UIA and Spencon-Stirling.
Kigozi, in her November 3 letter, asked the project manager to forward her request to award the contract, citing the contracts committee report.
It was, however, discovered that the contracts committee submitted its report on November 4, a day after the letter was written.
“Which report did you base your recommendations on if the contracts committee submitted its report after?” asked Okumu.
In response, Kigozi said she relied on the advice of the procurement specialist.
Upon further scrutiny, the committee learnt that the procurement specialist, Ronald Kyobe Ssebanenya, was a civil engineer by profession, with a certificate in World Bank procurement, and had never practiced procurement.
Ssebanenya is on the contracts committee as an advisor.
It was also discovered that the head of the industrial park was a mechanical engineer rather than a civil engineer.
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