PPDA tribunal cancels Arua offloading contract over irregularities
It further directed a fresh re-evaluation of the bids, noting that the initial award was improper and failed to meet the standard procedures of proper evaluation.
The contract, estimated at sh25 million per month for a 12-month period, was advertised under procurement reference number ARUA601/SRVCS/25-26/00005 on June 27, 2025. (File photo)
By Edward Anyoli
Journalists @New Vision
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The Public Procurement and Disposal of Public Assets (PPDA) Appeals Tribunal has cancelled the contract awarded to Eyere Company SMC Limited by Arua City Council for the collection of revenue from loading and offloading in Arua Central Division.
The Tribunal, chaired by Senior Counsel Francis Gimara and comprising Nelson Nerima, Geoffrey Nuwagira Kakira, Paul Kalumba, Charity Kyarisiima, Keto Kayemba, and Cyrus Titus Aomu, nullified the award after receiving a complaint that the procurement process was marred by irregularities.
It further directed a fresh re-evaluation of the bids, noting that the initial award was improper and failed to meet the standard procedures of proper evaluation.
The contract, estimated at sh25 million per month for a 12-month period, was advertised under procurement reference number ARUA601/SRVCS/25-26/00005 on June 27, 2025.
Four firms submitted bids by the July 17, 2025, deadline: Eyere Company SMC Limited, Hopeway Limited, Osidito Investments, and Mau-Summit Agency Limited.
Following the evaluation process, Arua City Council issued a Best Evaluated Bidder Notice on August 1, 2025, naming Eyere Company SMC Limited as the winner at a monthly contract price of sh48.15 million.
However, Hopeway Limited contested the outcome, filing a complaint with the city’s accounting officer on August 7, 2025. The company alleged irregularities in the evaluation process, arguing that the chairperson of the Evaluation Committee was appointed by the Procurement and Disposal Unit instead of being elected by committee members, in violation of Regulation 3(1) of the PPDA (Evaluation) Regulations, 2023.
Hopeway further claimed that the Procurement and Disposal Unit had a conflict of interest by unilaterally nominating the committee chairperson. The case was subsequently escalated to the PPDA Appeals Tribunal under Application Number 28 of 2025: Eyere Company SMC Limited vs Arua City Council.
On September 15, 2025, the Tribunal unanimously agreed with the application. It ruled that the accounting officer should set aside the previously selected bidder.
“The re-evaluation should be conducted by a fresh lawfully appointed Evaluation Committee, within ten working days from the date of this decision,” Gimara said.