Let IGG probe UBC contract

Oct 18, 2006

UGANDA Broadcasting Corporation has paid US $1.7 million for new equipment to a company associated with an Israeli businessman wanted by police in Kenya and Tanzania.<br>

UGANDA Broadcasting Corporation has paid US $1.7 million for new equipment to a company associated with an Israeli businessman wanted by police in Kenya and Tanzania.

Bizarrely the money was paid to Well Trade Services just one month after police placed an advertisement with Ron Oved’s photo in the New Vision asking for information of his whereabouts and advising the Ugandan business community to exercise caution in dealing with him.

It is not clear whether Ron Oved is merely a middleman working on behalf of WTS, or whether he is a shareholder and owner of the company.

The contract is worth $6.9 million in total and was supposed to cover the cost of moving the UBC studios from Nakasero and upgrading the UBC facilities.

Strangely the contract does not exactly specify the work that needs to be done and even says UBC should select the equipment after the contract has been signed.

WTS was chosen in a hurry by a Cabinet committee without going through the normal tender process because Aya Investments was desperate to take over the site to start building its hotel yet UBC could not afford to go off air during the World Cup.

A company whose representative is wanted by police was therefore awarded a multi-million dollar contract through single sourcing.
Some work and some equipment have been supplied by WTS but what is its real value?

There are also unconfirmed reports that Oved was involved with Media Airtime, the Kenyan company whose contract to handle all advertising sales for UBC has just been cancelled after they failed to deliver.

This whole transaction stinks. The Inspector General of Government needs to investigate urgently. In particular the IGG needs to establish how the contract was authorised and what is the true value of the equipment and technical work to be supplied by WTS. And why was Oved involved?

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