Ministry consults on oil deal
Apr 05, 2008
THE Energy Ministry fears it might pay heavily if they follow the directive of the Uganda Procurement Authority to find a new supplier for the Government oil reserves in Jinja.
By Barbara Among
THE Energy Ministry fears it might pay heavily if they follow the directive of the Uganda Procurement Authority to find a new supplier for the Government oil reserves in Jinja.
The concern has been raised in a March 27 letter from Permanent Secretary Kabagambe Kaliisa to the Solicitor General, seeking legal guidance on the matter.
The ministry is also seeking legal opinion over the withdrawal of a waiver by the Public Procurement and Disposal of Public Assets Authority (PPDA) that was granted to the entity to carry out procurement for the oil reserves.
“I have found it difficult at this stage to abrogate the existing contract and commence a fresh procurement given the eminent financial and legal implications of such an action,†Kaliisa wrote.
PPDA and Parliament halted the murky sh45b deal awarded to a local company Kenlloyd-Logistics (U) Ltd early March, citing several flaws in the procurement process.
The Authority ruled that the Ministry flouted procedure when it sought a waiver after commencing the procurement process. It revoked the waiver.
Kaliisa argued that the notion advanced by PPDA appears to be different from the usual administrative action of cancelling a tender. Re-tendering, Kaliisa said, would tantamount to cancellation of the existing contract between Kenlloyd Logistics and the Government.
“Unilateral cancellation of a contract might have serious legal and financial implication to the Government,†he warned.
He also stated that he was taking administrative measures to ensure that the errors which were committed are minimised in future.
PPDA demanded in its probe report that the accounting officer should carry out disciplinary measures against the Commissioner for Petroleum Supply Department.
Uganda suffered acute fuel crises in the month of January, following post-election violence in Kenya. Government needs to renovated and replenish the oil reserve at Jinja, if they are to avoid a re-occurrence.
THE Energy Ministry fears it might pay heavily if they follow the directive of the Uganda Procurement Authority to find a new supplier for the Government oil reserves in Jinja.
The concern has been raised in a March 27 letter from Permanent Secretary Kabagambe Kaliisa to the Solicitor General, seeking legal guidance on the matter.
The ministry is also seeking legal opinion over the withdrawal of a waiver by the Public Procurement and Disposal of Public Assets Authority (PPDA) that was granted to the entity to carry out procurement for the oil reserves.
“I have found it difficult at this stage to abrogate the existing contract and commence a fresh procurement given the eminent financial and legal implications of such an action,†Kaliisa wrote.
PPDA and Parliament halted the murky sh45b deal awarded to a local company Kenlloyd-Logistics (U) Ltd early March, citing several flaws in the procurement process.
The Authority ruled that the Ministry flouted procedure when it sought a waiver after commencing the procurement process. It revoked the waiver.
Kaliisa argued that the notion advanced by PPDA appears to be different from the usual administrative action of cancelling a tender. Re-tendering, Kaliisa said, would tantamount to cancellation of the existing contract between Kenlloyd Logistics and the Government.
“Unilateral cancellation of a contract might have serious legal and financial implication to the Government,†he warned.
He also stated that he was taking administrative measures to ensure that the errors which were committed are minimised in future.
PPDA demanded in its probe report that the accounting officer should carry out disciplinary measures against the Commissioner for Petroleum Supply Department.
Uganda suffered acute fuel crises in the month of January, following post-election violence in Kenya. Government needs to renovated and replenish the oil reserve at Jinja, if they are to avoid a re-occurrence.