Minister Muloni denies awarding contract to blacklisted firm

May 27, 2017

“I have no knowledge. Please contact UEGCL(Uganda Electricity Generation Company Limited). They have their own board. They should be able to explain,” she said.

Energy minister Irene Muloni. Photo/File

Energy minister Irene Muloni has distanced herself from a controversial deal in which, Dott Services Limited, a blacklisted construction firm won a multibillion contract to construct a hydro power project in West Nile. 

It emerged this week that the firm had recently acquired a tender to construct the $14.5 (sh52.b) Nyagak III dam, against an order issued by President Yoweri Museveni early this year. 

The 5.5 megawatt dam is located on Nyagak River, about 7 km to the north of Paidha town. Started in 2011, the dam is slated to be completed in 2018 and is expected to ease power problems for West Nile region, especially towns of Paidha, Nebbi, Bondo, Okollo, and Arua.

New Vision has learnt that Dott Services is involved in road construction and other civil works at the dam, a deal which is in contravention of an executive order barring government agencies from dealing with Dott Service limited.

The order came in place April after Dotts was accused of incompetence in executing government projects, especially roads.  The president said he had he had reliable information linking Dott Services Limited to fraudulent dealings in its acquisition of tenders from government.  As well as Dott Services, the order also blacklisted General Nile Company.

However, despite announcing the deal at Uganda Media Centre last week Muloni denied knowledge of the messy deal, when contacted by New Vision.

"I have no knowledge. Please contact UEGCL(Uganda Electricity Generation Company Limited). They have their own board. They should be able to explain," she said.

UEGCL spokesperson Simon Kasyate confirmed they had a contract with Dott Service Limited. However, he denied they had acted in contravention of the Presidential directive. He said they contracted Dott services two year before the said Presidential Directive came in place. 

Besides, he said directive was not binding because they have never formally received the copy of the order.

"UEGCL has only seen [order] in press reports and on social media," he said.  He noted, however, that even if they had received the directive, the wording in the directive vindicates their dealings with the contractor, because the order only cautioned agencies against entering into any new contracts. 

"I believe this directive was made, carefully and aware that Dott has some subsisting contacts with some government agencies. As such, our dealings with Dott are not an affront to the Presidential directive," Kasyate said.  

 

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