Energy ministry probed over fraud

By Patrick Jaramogi       
         
The Public Procurement and Disposal of Public Assets (PPDA) is investigating what it described as “fraud” in the bidding and tendering process for the supply of Stabilized Interlocking Block Making Machines for the Ministry of Energy and Mineral Development.

The ministry of Energy and Mineral Development (MEDM) advertised for the supply of Stabilized Interlocking Block Making Machines (Ref. No. MEMD/SUPLS/14-15/00097/ERD).

The Stabilized Interlocking Block making machines and accessories is to be used for demonstration purposes in Wakiso district. But in a twist of events, following a complaint from one of the bidders, PPDA has swung into action and ordered the Energy Ministry to advise the evaluation committee to ensure transparency in accordance with the bidding documents.

Benson Turamye the PPDA director of investigations in a letter dated February 4, 2015 said M/S Hydrahomes (one of the bidders) had complained to them describing the evaluation process as ambiguous and aimed at deliberately abating crime to cover-up and facilitate a weak and tricky bidder, Hydraform Uganda Limited.

PPDA in a letter to the Ministry of Energy highlighted areas of concern as; irregular identification of bidders, interpretation of technical specification was not proper, the significance of bid price and value for money, delayed evaluation process and unfair competition and possible behaviour and character of competing parties.

Quoting section 26 (1) of the PDDA Act 2003, Turamye said the Act places the overall responsibility for the successful execution of the procurement, disposal and contract management processes in the Procuring and Disposing entity on the accounting officer. “The purpose of this letter is to ask you to advice the evaluation committee to ensure that the evaluation is done transparently in accordance with the bidding document,” wrote Turamye.

Godfrey Ndawula the Chairman of the Pre-bid meeting in the Ministry of Energy and Mineral Development in a reply letter dated February 16, 2015 said they invited bidders for a pre-bid meeting as is the normal practice. Ndawula said all bidders attended the meeting.

“The meeting discussed the technical specifications and the other bid requirements and came up with a harmonized position,” said Ndawula.

According to Ndawula only two firms, Hydrahomes Uganda Limited and Hydraform Uganda Limited submitted bids.

He said the Ministry of Energy and Mineral Development takes serious concern over allegations raised by Hydrahomes Uganda Limited especially regarding the claims that MEMD is abetting criminal activities under this procurement process. “These allegations need to be substantiated by the authors of the letter as it puts MEMD that is acting in public trust, in disrepute.

Ndawula however acknowledged that the period of the evaluation and award of contract as per the advertisement was planned but was delayed due to other issues.

According to the advert, the Ministry of Energy and Mineral Development placed on October 16, 2014 as the bid notice, October 30, 2014 as the Pre-bid meeting and closing of bids on November 17, 2014. The evaluation process was to last between November 17- 24, 2014. While the display of communication of the best evaluated bidder was slated for between November 25- December 9 2014 and the contract was to be awarded by December 12 2014.

Harrison Busingye the chairman Hydrahomes said much as competition is healthy in any business, unfair competition coupled with sabotage during bidding cannot be tolerated.