IGG Blocks KCC Tender
Apr 16, 2004
THE Inspector General of Government (IGG) has blocked a multi-billion shilling project to reconstruct pedestrian walkways, shop verandahs and road shoulders in central Kampala, citing corruption in the tendering process.
By Alfred Wasike
THE Inspector General of Government (IGG) has blocked a multi-billion shilling project to reconstruct pedestrian walkways, shop verandahs and road shoulders in central Kampala, citing corruption in the tendering process.
The World Bank-funded deal was advertised on January 21, 2004. The controversial project is part of a US$100m LGDP grant from the World Bank.
Five construction firms, Dotts Services, Prime Contractors, Pincas Construction, Eastern Builders & Engineers, and Multiplex bid for the job.
Investigations show that Dotts Services bid sh9,956,700,000, Pincas Construction, sh4,820,791,950, Eastern Builders, sh1,582,348,584, sh1,582,348,584, Prime Contractors,sh7,915,852,500 and Multiplex sh1,432,589,167. The firms declined to comment.
The Kampala District Tender Board (KDTB)revised the contract price from sh7,915,852,500 to sh1,525,478,221 and awarded it to Prime Contractors on March 26.
“This is to inform you that the KDTB at its meeting on 25th March, 2004 awarded you the contract for reconstruction of pedestrian walkways, shop verandahs and road shoulders in Kampala city central business district at a contract price of sh1,525,478,221, including VAT. The Bills of Quantities have been revised, thus the reduction in the contract price,†said the award letter signed by KDTB acting secretary Justine Kasule.
Deputy IGG David Psomgen wrote to Mayor John Sebaana Kizito on April 6, complaining about the decision and halted the project till the IGG had established the truth.
“We have learnt that KDTB awarded the tender to a company which was the 4th lowest bidder and which was not responsive to other tender requirements. This was done after the Tender Board unilaterally adjusted the company's tender sum from sh7,915,852,500 to sh1,525,478,221, including VAT,†the IGG noted.
He said, “Suspend any further transactions on this matter including signing of the contract agreement with the firm until this matter has been reviewed by this office.â€
Kasule said, “The law does not allow me to talk to the press. The board is addressing the matter. I can assure you that all the bidders signed for the addendum of raised bills of quantities. The city engineer prepared all the addendums. Please speak to engineer Byandala.â€
Byandala, who denied corruption in the tendering process, said, “When we costed the bills of quantities, we realised that the money was far higher than we had in our kitty for this job.â€
“We gave the revision to all the parties concerned. We even extended the submission date. But since the thing is under probe by the IGG, I can't tell you more than this,†he said.
Kampala RDC Dr Stanley Kinyatta, also wrote to Ssebaana, saying the tender board opened the bids before it established all tenderers received clarifications and addendums.
Ends
THE Inspector General of Government (IGG) has blocked a multi-billion shilling project to reconstruct pedestrian walkways, shop verandahs and road shoulders in central Kampala, citing corruption in the tendering process.
The World Bank-funded deal was advertised on January 21, 2004. The controversial project is part of a US$100m LGDP grant from the World Bank.
Five construction firms, Dotts Services, Prime Contractors, Pincas Construction, Eastern Builders & Engineers, and Multiplex bid for the job.
Investigations show that Dotts Services bid sh9,956,700,000, Pincas Construction, sh4,820,791,950, Eastern Builders, sh1,582,348,584, sh1,582,348,584, Prime Contractors,sh7,915,852,500 and Multiplex sh1,432,589,167. The firms declined to comment.
The Kampala District Tender Board (KDTB)revised the contract price from sh7,915,852,500 to sh1,525,478,221 and awarded it to Prime Contractors on March 26.
“This is to inform you that the KDTB at its meeting on 25th March, 2004 awarded you the contract for reconstruction of pedestrian walkways, shop verandahs and road shoulders in Kampala city central business district at a contract price of sh1,525,478,221, including VAT. The Bills of Quantities have been revised, thus the reduction in the contract price,†said the award letter signed by KDTB acting secretary Justine Kasule.
Deputy IGG David Psomgen wrote to Mayor John Sebaana Kizito on April 6, complaining about the decision and halted the project till the IGG had established the truth.
“We have learnt that KDTB awarded the tender to a company which was the 4th lowest bidder and which was not responsive to other tender requirements. This was done after the Tender Board unilaterally adjusted the company's tender sum from sh7,915,852,500 to sh1,525,478,221, including VAT,†the IGG noted.
He said, “Suspend any further transactions on this matter including signing of the contract agreement with the firm until this matter has been reviewed by this office.â€
Kasule said, “The law does not allow me to talk to the press. The board is addressing the matter. I can assure you that all the bidders signed for the addendum of raised bills of quantities. The city engineer prepared all the addendums. Please speak to engineer Byandala.â€
Byandala, who denied corruption in the tendering process, said, “When we costed the bills of quantities, we realised that the money was far higher than we had in our kitty for this job.â€
“We gave the revision to all the parties concerned. We even extended the submission date. But since the thing is under probe by the IGG, I can't tell you more than this,†he said.
Kampala RDC Dr Stanley Kinyatta, also wrote to Ssebaana, saying the tender board opened the bids before it established all tenderers received clarifications and addendums.
Ends