Tororo asked to re-advertise tender
May 06, 2008
Tororo Municipal Council must re-advertise the tender for revenue collection from Tororo taxi and bus parks, according to the Public Procurement and Disposal of Public Assets Authority.
By Moses Nampala
Tororo Municipal Council must re-advertise the tender for revenue collection from Tororo taxi and bus parks, according to the Public Procurement and Disposal of Public Assets Authority.
The council was also directed to collect the revenue from the two parks. This was previously done by UTODA Tororo branch.
A report from the authority stated that: “UTODA Tororo branch is an illegal entity that did not have the capacity to enter into a contract with the council. The contract between the two parties and the activities conducted were irregular.â€
The report of April 9 urged the permanent secretary in the Ministry of local government to discipline the acting town clerk, Kennedy Ofwono, since he knew that the taxi body was not registered.
“He signed a contract with an illegal firm.â€
The authority was investigating the process in which the council invited firms to bid for revenue collection services for the 2007/08 financial year.
Records showed that four firms bid for the tender and the reserve price was sh11.5m. Namutala Company bid sh10.75m, Fadita Investment sh10m, Damasa General Services offered sh13.5m, while UTODA Tororo bid sh11.1m.
“The evaluation committee awarded the contract to UTODA Tororo branch but this resulted in a shortfall of sh400,000 monthly. The essence of a reserve price is lost when a contract is awarded at a figure less than that,†the report stated.
In addition, the contract between the council and the taxi body was not followed.
“The contractor charged sh17,000 at the Jinja stage instead of sh12,000, and sh20,000 for Kampala stage instead of sh15,000,†the report stated. The taxi body would not remit the revenue in time.
Tororo Municipal Council must re-advertise the tender for revenue collection from Tororo taxi and bus parks, according to the Public Procurement and Disposal of Public Assets Authority.
The council was also directed to collect the revenue from the two parks. This was previously done by UTODA Tororo branch.
A report from the authority stated that: “UTODA Tororo branch is an illegal entity that did not have the capacity to enter into a contract with the council. The contract between the two parties and the activities conducted were irregular.â€
The report of April 9 urged the permanent secretary in the Ministry of local government to discipline the acting town clerk, Kennedy Ofwono, since he knew that the taxi body was not registered.
“He signed a contract with an illegal firm.â€
The authority was investigating the process in which the council invited firms to bid for revenue collection services for the 2007/08 financial year.
Records showed that four firms bid for the tender and the reserve price was sh11.5m. Namutala Company bid sh10.75m, Fadita Investment sh10m, Damasa General Services offered sh13.5m, while UTODA Tororo bid sh11.1m.
“The evaluation committee awarded the contract to UTODA Tororo branch but this resulted in a shortfall of sh400,000 monthly. The essence of a reserve price is lost when a contract is awarded at a figure less than that,†the report stated.
In addition, the contract between the council and the taxi body was not followed.
“The contractor charged sh17,000 at the Jinja stage instead of sh12,000, and sh20,000 for Kampala stage instead of sh15,000,†the report stated. The taxi body would not remit the revenue in time.