EC awards foreign firms sh200b ballot paper deal

Local printing companies are crying foul after the Electoral Commission (EC) awarded tenders to print ballot papers for the 2021 general election to foreign-based firms, contrary to the Government's policy of Buy Uganda Build Uganda (BUBU).

The Uganda Printers Association (UPA) has protested the move.

The tenders to print ballot papers for the presidential, parliamentary and local government elections, estimated to cost close to sh200b, were awarded to firms from United Kingdom, South Africa and the United Arab Emirates (UAE).

The firms include Tall Security Printers (UK), Uniprint (South Africa), United Printing and Publishing (Abu Dhabi, UAE), Adare Sec Ltd (UK) and Al Ghurair Printing and Publishing Company (Dubai).

Sources who participated in the bidding process accused EC of giving Lot 3 to a foreign firm yet they had quoted lower figures than that firm. Archie Kiwanuka, the UPA chairperson, expressed frustration at the manner in which they were sidelined in the procurement process yet local companies have the capacity to print some of the ballot papers.

He confirmed that several local companies had not only shipped in modern printing equipment but also purchased the paper in preparation for printing the ballot papers.

"We are extremely frustrated. Why did they engage us in the first place? Many local companies were forced to invest money in new printers and products, in the hope that they would get the jobs. But, now, they are counting losses. What happened to the Government's policy of BUBU?" Kiwanuka asked.

BUBU is a policy that was introduced by the Government geared towards promoting the use of locally manufactured goods and employment of local skills/personnel.

The success of the BUBU concept required Uganda companies and skilled professionals to position themselves to play critical roles in building the economy and reaping from it.

In July this year, eight senior EC officials were removed, on a presidential directive, reportedly over irregular procurements.

Sources said it was surprising that three months later, their successors are doing the same thing.

UPA REACTS

Sources noted that for the 2016 election, some of the ballot papers were printed locally.

Reddy Srinivasa Punyala, the general manager of Transpaper (U) Ltd, accused the EC of defying a presidential directive on printing ballot papers in the country.

President Yoweri Museveni, in a letter to the Prime Minister, dated March 23, 2020, directed that ballot papers for elections, banknotes, passports, driving licences and identity cards to be printed locally, to sh900m) but they never came to inspect the machines that we imported," Srinivasa added. He said EC then proceeded to advertise and opened the bidding process to international firms.

Twentyone companies, including the local nine companies, showed interest. "The local companies gave their best quotes and were even cheaper by 15%. There is a requirement that was set that companies bidding should have at least printed 15 million copies, but we engaged EC and this requirement was set aside," he said.

In a letter dated July 22, UPA protested the EC decision to open up the procurement to international firms.

UPA requested for an addendum correction to the bid so that lots 1, 2, 3, 4, 5, 6 and 9 are printed by local manufacturers and that all companies who are pre-qualified or approved by EC technical team can bid for the tender irrespective of the 15 million minimum experience condition Umar Luyimbazi, the head of commercial printing at Vision Group, said as UPA members, they heeded the President's call and submitted their documents.

He noted that most of the local companies had never printed the large quantities of ballot papers that EC wanted but they put in a lot of efforts to ensure they meet all the demands. Luyimbazi explained that Vision Group entered into a joint venture with HiTech Graphics and put in bids for lots 3, 4 and 6.

But were disqualified on one technicality. "We were disqualified on the basis that we did not attach the delivery schedule. This was a minor issue and the EC should have written to us and demanded we furnish, rather than disqualify us on flimsy grounds," Luyimbazi said. He criticised EC for failing to empower local investors.

Picfare's director of legal and corporate affairs Richard Mubiru said: "It was disappointing that in spite of BUBU and the PPDA amendment guidelines for reservation for local companies, the EC awarded tenders to foreign companies when there is the evident capacity to deliver."

"What is even more surprising is, at the moment when the companies really needed support from the Government given the losses accrued because of COVID-19, the EC chose to give foreigners the contract," he added.

WHY BIDS WERE REJECTED

The EC cited many reasons why local companies were eliminated from the deal. Group Joss NV was eliminated because it did not submit its certificate of incorporation or its equivalent. There was also no evidence of fulfilment to pay taxes and they did not submit bid security.

Media World Productions Ltd and Abulhoul Printing Press Ltd joint venture was disqualified reportedly because it did not submit their licence, certificate of registration and evidence of payment of taxes.

BN Enterprises Ltd did not submit the bid submission sheet. In-Line, Print Services and Hitech General Trading LLC did not submit a certified joint venture agreement. Marianum Press Ltd, linked to the Catholic church, reportedly submitted invalid bid security and enclosed a commitment letter from SWICO as bid security.

Multiplex Ltd, Wave Media Ltd, In-Line Print Services Ltd, Graphics System (u) ltd, Picfare Industries, Baltjas Banknote and Oriental Security Printing Solutions reportedly did not submit evidence of completion of three contracts of similar nature and complexity.

ELECTORAL COMMISSION RESPONDS
EC acting spokesperson Paul Bukenya admitted that they had conducted a capacity check with local printers as a step towards BUBU.

"We, however, mentioned to the companies we visited that there was limited capacity in the local industry. We, then, proceeded with International open biding which is within the PPDA.

Both local and international bids were evaluated and we did not set out to ringfence any specific lots for the local companies," Bukenya said.

He said the EC evaluation committee outlined the reasons for the failure of some the bids by both the local and international bidders.

However, he did not explain why they did not give local companies a chance to correct some of the biding errors. Bukenya said the concerned technical people were not readily available yesterday to give a detailed explanation on the matter. 

LOTS AWARDED
Lot 1, which involved the printing of ballot papers for presidential and directly elected members of Parliament, has been awarded to United Printing and Publishing, at a cost of sh27.1b.

Lot 2, which includes the printing of ballot papers for district woman representatives, has been awarded to Al Ghurair Printing and Publishing Company at the cost of sh35.4b

Lot 3, which includes the printing of ballots for district women representatives to parliament and district city women councillors, worth sh43.9b, has been awarded to Uniprint.

Lot 4, which includes printing of ballot papers for municipalities/city division chairperson and women councillors, at a cost of sh11b has been awarded to Uniprint.

Lot 5, which includes the printing of ballot papers for municipality/city division directly elected councillors, costing sh6.1b, has been awarded to Tall Security Print Ltd.

Lot 6, has been awarded to Adare Sec Ltd to print ballot papers for sub-county/town/ municipality division at a cost of sh15b.

Lot 7, which includes the printing of ballot papers for sub-county/town/municipal/ division directly elected councillors has been awarded to Adare Sec. Ltd at a cost of sh22b.

Lot 8, which includes printing of ballot papers for sub-county/ town/municipal/division women councillors has been awarded to AL Ghurair at a cost of sh30.2b.

Lot 9, which include printing of ballot papers for councillors representing special interest groups at district, city and local government, has been awarded to Tall Security Printers and it is worth sh4.3b.