Investigates 20 More for Ethics Violations
(Kampala) – The Public Procurement and Disposal of Public Assets Authority (PPDA) has suspended 15 companies from participating in public procurement due to multiple breaches of the code of ethics. The suspensions range from one to four years, with some companies facing indefinite bans.
According to Mr. Benson Turamye, the PPDA Executive Director, the companies were suspended for failing to meet contractual obligations, forging bid securities, performance bonds, and certificates of completion. The PPDA also noted instances of companies submitting fraudulent National Social Security Fund (NSSF) certificates, false certificates of incorporation, fake reseller’s authorization letters, forged bank guarantees, and Uganda Revenue Authority (URA) tax clearance certificates.
Despite the suspensions, these companies remain responsible for fulfilling any existing contracts they had before the suspension. After the suspension period ends, companies can apply in writing to be removed from the list of suspended providers to resume public bidding.
The breaches were identified after the PPDA instructed all government ministries, departments, and agencies to conduct due diligence and report any irregularities. Mr. Turamye also mentioned that the Auditor General’s reports, which highlight poor work or abandoned sites, were used in the investigations. Currently, over 20 companies are under investigation for similar ethical breaches.
For example, Amman Industrial Tools and Equipment has been indefinitely suspended for failing to perform a contract, resulting in a financial loss of $1.7 million (Shs6.4 billion).
To address procurement fraud, the PPDA is accelerating the implementation of the electronic government procurement (e-GP) system. Currently, only 36 agencies are using the e-GP platform, but the PPDA plans to enroll 250 agencies this financial year. The goal is to reduce fraud and improve efficiency by moving away from manual processes.
Below is a summary of the suspended companies and the reasons for their suspension:
| Provider | Breach Committed |
|---|---|
| Migmoen Consults | Forged performance bond |
| Smishels Int | Forged bid security |
| Amononeno Investment | Forged bid security |
| Agono Gen Enterprises | Forged bid security |
| Magiwa Contractors | Forged certificates of completion |
| Ideal Merchant | Forged bid security |
| Zema Sacco | Forged bid security |
| Royi Sanna | Forged bid security |
| Jadel Construction | Forged bid security |
| Jadel Const – SMC | Forged bid security |
| Akidas Technical | Unauthentic bid securities |
| Visible Investments | Unauthentic NSSF certificate |
| Abba Technical | Unauthentic certificate |
| Charomah Uganda | Unauthentic reseller’s authorisation |
| Amman Industrial | Failure to perform a contract |
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