Shs4.7b bicycle scam firm expelled
(L-R): Convicts Sam Emorut Erongot, John Kashaka Muhanguzi, Adam Aluma and Timothy Musherure, at the Anti-corruption Court on July 17, 2014. PHOTO/FILE
What you need to know:
- M/S Amman Industrial Tools and Equipment Limited was indefinitely suspended while its 31 counterparts got temporary suspensions.
Government has indefinitely suspended a firm, which defrauded it of $1.7m (about Shs4.7b then) in the infamous 2010/11 bicycle scandal.
M/S Amman Industrial Tools and Equipment Limited (Aitel) was indefinitely suspended while its 31 counterparts got temporary suspensions of between one and five years.
Aitel, which will never transact any business with government, in 2012 hoodwinked it that it can supply 70,000 bicycles to village chairpersons, only to defraud Shs4.7b.
The executive director of the Public Procurement and Disposal of Public Assets (PPDA), Mr Benson Turamye, who confirmed the list of 32 suspended companies posted on their website, said the government is in process of recovering the money Aitel stole.
“[The firm] failed to substantially perform a contract leading to financial loss of $1.7m. We are in the process of recovering [the] funds, as you may be aware, the officers of the ministry of local government are already in prison over the same,” he said.
Five officials from the Ministry of Local Government were in 2014 sentenced to 10 years in jail following their direct involvement in the bicycle scandal.
These were former permanent secretary John Muhanguzi Kashaka, former principal accountant Henry Bamuturaki, former principal procurement officer Robert Mwebaze, former senior consultant Timothy Musherure and Adam Aluma.
Fraud
Their arrest, prosecution, conviction and sentencing followed a detailed October 2011 report by the Public Service and Local Government ministries, which highlighted how they spearheaded the payment of funds to a firm, which did not supply the bicycles.
Mr Turyamye said the suspension applies to any successor in interest, which includes any entity that is substantially similar to a suspended entity or which employs or is associated with any partner, member, officer, director, responsible managing officer or responsible managing employee of a suspended entity.
Majority of these companies were suspended because of submitting unauthentic tax clearance, advance payment and performance guarantees, and fake bid documents.
Mr Turyamye said the suspension does not relieve the provider of responsibility or obligations under any existing contract placed prior to the suspension.
“During the suspension period, all Procuring and Disposing Entities shall not; award contracts to the suspended companies; sell or issue solicitation documents to the suspended companies or in any way solicit bids from them; and enter into any other dealings or communication with the suspended companies except in respect to existing contracts placed prior to the suspension,” reads part of the document which Mr Turyamye affirmed.
The temporarily suspended firms, he said, may after the expiry of the period of suspension, apply to the Authority, in writing, to be removed from the list of suspended providers.
Local Government ministry had in May 2010, received a May 11, 2010 letter from the then Minister for the Presidency, Dr Beatrice Wabudeya, who had asked them to procure bicycles to Local Council One chairpersons as it had been directed by the Cabinet.
Aitel, which purportedly had powers of attorney to transact business on behalf of Amman Impex of India, emerged the best evaluated bidder among the six who applied for the project, and they were awarded the contract on November 26, 2010.
31 Other affected companies
A total of 31 companies were suspended alongside Aitel last week and they are Smishels International Consulting Group, Amononeno Investment (U) Limited, Agono General Enterprises, Magiwa Contractors Limited, Ideal Merchant Property Holding Limited, and Zema Savings and Credit Company Limited, Royi Sanna Engineers Limited, Jadel Construction Company Limited, Buildbase Contractors Limited, SSKE Logistics (U) Limited, Richiencoy Services Ltd, Turukana Das General Ent. Company, Kinoni Auto Trading, Nampa General Supplies Limited, Akidas Technical Services Limited, Koltum Company Limited, Visible Investments Limited, Suez Auto Enterprises Limited, and Abba Technical Services Company Limited.
Others are Charomah Uganda Limited, K.B Technical Services, Ezekiel Construction Limited, Mabrows Contractors Limited, Rwapa Technologies Limited, Ahijum Technical Services Limited, Yurio General, Kihembe Transporters Limited, Saja’s Company Limited, Loborom Company Limited, Brilliant Arch Consult & Engineering Company Limited, and Empire Tools Limited.
