Firm fails to deliver LC bicycles
Jun 15, 2011
THE Government is investigating a private Indian firm over its failure to supply 70,000 bicycles to local council chairpersons countrywide.
By TADDEO BWAMBALE
THE Government is investigating a private Indian firm over its failure to supply 70,000 bicycles to local council chairpersons countrywide.
The programme was intended to ease the work of LC1 and LC2 chairpersons in monitoring government programmes.
The contract was awarded to Amman Industrial Tools and Equipment, which is said to have been working on behalf of Amman Impex, another firm based in India.
Amman Impex is said to be owned by an Indian national identified as Rajesh.
The managing director of Amman Industrial Tools and Equipment was identified as Nisha Maini.
Further details about the company or its manager could not be established by press time. A search on the internet did not yield any records or website of the company.
Kashaka, who initially declined to reveal the identity of the company, confirmed that it was an Indian firm.
The firm reportedly signed a contract with the Government in November last year, in which it was agreed to supply the bicycles by March 25.
The firm was paid sh2.4b ($1m) in part payment.
But the Permanent Secretary in the ministry of Local Government, Muhanguzi Kashaka, disclosed that the contractor had failed to supply the bicycles, more than six months later.
“We paid 40% as agreed in the contract but the supplier has failed to deliver. We have now contacted the Solicitor General and the ministry of finance for advice on how to terminate the contract,†Kashaka said.
Kashaka added that the ministry had reported the matter to the Police
He also disclosed that attempts to compel the contractor to supply the bicycles have been futile, adding that the company claimed it had ‘logistical problems’.
He further noted that the ministry had engaged an insurance company to seek compensation for delayed delivery, estimated at about sh1b ($380,000).
Kashaka made the disclosure in Kampala on Monday at a handover by the outgoing local government state minister, Perez Ahabwe, to his successor, Alex Onzima.
Kashaka added that the ministry was seeking a waiver from the Procurement and Disposal of Assets Authority (PPDA) to buy and distribute the bicycles by June 30.
“We want to use the 60% of the money or commit it for the project before it is returned to the treasury. We hope to source the next best bidder for the job,†he said.
Yesterday, Kashaka said officials from the company approached the ministry, promising to ship the bicycles by Friday.
Kashaka, however, said the ministry had already approached PPDA to go ahead with the option of sourcing the second best bidder.
A source yesterday revealed that the company had been given 28 days starting last week to deliver, beyond which the Government would enlist the help of Interpol to track the proprietors.
But Kashaka said the Government would soften its stance should they deliver.
“Our interest is to have the bicycles delivered. We shall penalise them as soon as they deliver,†he said.
THE Government is investigating a private Indian firm over its failure to supply 70,000 bicycles to local council chairpersons countrywide.
The programme was intended to ease the work of LC1 and LC2 chairpersons in monitoring government programmes.
The contract was awarded to Amman Industrial Tools and Equipment, which is said to have been working on behalf of Amman Impex, another firm based in India.
Amman Impex is said to be owned by an Indian national identified as Rajesh.
The managing director of Amman Industrial Tools and Equipment was identified as Nisha Maini.
Further details about the company or its manager could not be established by press time. A search on the internet did not yield any records or website of the company.
Kashaka, who initially declined to reveal the identity of the company, confirmed that it was an Indian firm.
The firm reportedly signed a contract with the Government in November last year, in which it was agreed to supply the bicycles by March 25.
The firm was paid sh2.4b ($1m) in part payment.
But the Permanent Secretary in the ministry of Local Government, Muhanguzi Kashaka, disclosed that the contractor had failed to supply the bicycles, more than six months later.
“We paid 40% as agreed in the contract but the supplier has failed to deliver. We have now contacted the Solicitor General and the ministry of finance for advice on how to terminate the contract,†Kashaka said.
Kashaka added that the ministry had reported the matter to the Police
He also disclosed that attempts to compel the contractor to supply the bicycles have been futile, adding that the company claimed it had ‘logistical problems’.
He further noted that the ministry had engaged an insurance company to seek compensation for delayed delivery, estimated at about sh1b ($380,000).
Kashaka made the disclosure in Kampala on Monday at a handover by the outgoing local government state minister, Perez Ahabwe, to his successor, Alex Onzima.
Kashaka added that the ministry was seeking a waiver from the Procurement and Disposal of Assets Authority (PPDA) to buy and distribute the bicycles by June 30.
“We want to use the 60% of the money or commit it for the project before it is returned to the treasury. We hope to source the next best bidder for the job,†he said.
Yesterday, Kashaka said officials from the company approached the ministry, promising to ship the bicycles by Friday.
Kashaka, however, said the ministry had already approached PPDA to go ahead with the option of sourcing the second best bidder.
A source yesterday revealed that the company had been given 28 days starting last week to deliver, beyond which the Government would enlist the help of Interpol to track the proprietors.
But Kashaka said the Government would soften its stance should they deliver.
“Our interest is to have the bicycles delivered. We shall penalise them as soon as they deliver,†he said.