Business
Contractors warned against inflating cost of productsPublish Date: Oct 11, 2012
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By Vision Reporter

Public accounting officers have been warned against signing contracts that are above the market price and to concentrate more on outsourcing contractors than use of force account.

Force account is the use of government road construction equipment and labour in executing road construction works or maintenance.

But it has been grossly abused.

Charles Muganzi, the works permanent secretary, said it is criminal under the Public Procurement and Disposal of Public Assets Authority (PPDA) laws for any accounting officer to clear any contract, which is above the open market price.

He said PPDA has also limited application of force account in road construction and maintenance.

It should only be used in emergency situations and when outsourcing of the contractors has completely failed.

Speaking during the 8th joint transport sector review workshop at Hotel Africana, Muganzi  said the Government is working on ways in which to stop and punish contractors who inflate the road unit cost as this denies taxpayers value for money.

It is estimated that about 50% of the road construction materials in Uganda are imported.

Because foreign firms are not certain of getting new contracts after completing existing projects, they overcharge to compensate.

Eng. John Byabagambi, the state minister said murrum and hardcore in some neighbouring countries is free as the land belongs to the state, which is not the case in Uganda.

This is among other major reasons for increasing the unit cost for road construction. Byabagambi said failure of the local construction industry to take off is forcing the Government to set up a national road construction company to close the gap.

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