URSB on the spot over double company registration

By Patrick Jaramogi     

The Uganda Registration Services Bureau (URSB) is on the spot over registration of two companies operating under the same names.

The two companies; Hydraform (U) Limited and Hydraform (Uganda) Limited both dealing in interlocking stabilizing block making machines (ISSB) are dully registered and operating in the country.

According to certificates obtained by this paper, the first Hydraform (U) Limited Company whose address is P.O.BOX 2345 Kampala and whose directors are Bright and Grace Nuwagaba were dully registered on September 26, 2011 while the second Hydraform, whose address is P.O.BOX 2237 and whose directors are Robert Plattner and Joy Mugisa, was registered on May 24, 2012.

Robert Plattner (an Austrian) also happens to be the Managing director of a South African based Hydraform PTY Limited.

Apart from the registration numbers being 137639 and later being 149594 and the directors being different, they bare the same names.

The documents obtained indicate that the later Hydraform (U) whose certificate number is 1495994 filed their papers for registration on the 24th of May 2012 and received their certificate on that very day 24th of May 2012.

The anomalies of the double registration came to light as bids for the tendering process for the supply of Stabilized Interlocking Block Making Machines for the Ministry of Energy and Mineral Development.

(MEDM) were being evaluated last month. MEMD had late last year advertised for the supply of Stabilized Interlocking Block Making Machines under (Ref. No. MEMD/SUPLS/14-15/00097/ERD).

The Stabilized Interlocking Block making machines and accessories is to be used for demonstration purposes in Wakiso district. But as the bids were being reviewed one of the contracts committee officials noticed that the two firms that had bid bore the same names.

Godfrey Ndawula, the Chairman of the Pre-bid meeting in the Ministry of Energy and Mineral Development said the two firms responded to the bid advert.

According to the registration of Companies Act, no two similar companies can be registered at the same time.
 
“Registering a company with a similar one that already exists contravenes the company law,” says senior Kampala lawyer.

When contacted, the URSB Registrar General Bemanya Twebaze described the incident as “erroneous”. 

“At times we do witness such cases but it would be erroneous because we always do a name reserve and name search,” said Bemanya. 

Bemanya did however acknowledge that he had received several complaints of fraud and erroneous registration of companies by a cross section of URSB staff.

“I can’t rule out bribery, foul play and fraud here (URSB) in-fact we have heard of such cases and as management we are right now in a massive cleanup exercise to get rid of such rotten apples,” he said.

He noted that much as some staff are genuine and doing their work well, one bad person
would put the entire integrity of the institution at repute.

He however noted that under such circumstances, the first company to be registered would remain. “We shall write to the directors of the second company to change the name and if they don’t after some period we shall definitely de-register their company,” he said.

Bemanya however said the incident will ignite a series of serious cleanup and investigations of staff in registration bureau. He said individuals involved in “dirty games” would be answerable individually
for their acts.

“We used to do everything manually but we have now upgraded and digitalized so we are reducing on such errors,” he said.

On her part Patience Atuhaire Mercella who signed the certificate did point out that such mistakes indeed occur.
“Errors happen. That is not the first case here. Sometimes the people doing the search can error but also due to the manual system, name search can be tedious but now with the digitalization, such error will be minimized,” she said.

When contacted, Robert Plattner, the director with Hydraform Uganda Limited referred this
reporter to his lawyers.

Edgar Agaba, the lawyer said it was not their mistake but that of URSB. “As a lawyer I don’t issue registration certificates. The blame goes to URSB that registers companies,” said Agaba