Members of Parliament on the opposition side have asked the August House to intervene and stop President Yoweri Museveni from illegally awarding contracts to foreign and some local companies without going through bidding and due diligence endorsements.
While presenting the statement during the Thursday plenary sitting on behalf of the opposition, Mawokota South legislator Yusuf Nsibambi said president Museveni’s practice of hand-picking companies and illegally awards them contracts sabotages programs of government agencies.
“Honorable members this practice is not only irregular but illegal. In the first place the president is initiating procurement needs by informally meeting service providers in State House and issuing directives commanding government agencies, ministries, departments to enter into formal agreements with those service providers based on his wishes.”
Nsibambi warned that although the President is the fountain of honour and he is free to enjoy the executive authority under the constitution, he must exercise them expeditiously and within the confines of the law.
“What is happening the President is contravening the established law. Of recent, the he has issued out five directives and other general arbitrary directives.”
Three months ago, letters were disclosed showing how the Museveni ordered some government agencies to award contracts to some specific foreign companies without passing through procurement processes as the law requires.
One of those letters was dated 15th May 2021where the President directed Uganda National Roads Authority (UNRA) to enter into an agreement with a Chinese Company Zhongmei Engineering group on a pre-financing arrangement to construct Kanoni-Misingi-Mityana road (37km).
Another one was dated 21st June 2021 where he again directed UNRA to enter into an agreement with Chongqing International Construction Cooperation (CICO) which is going to design and construct Kabwohe-Kitagata-Rukungiri (65.7km) and Masindye-Kabimbiri-Zirobwe-Wobulezi-Kapeeka (138km) still on pre-financing arrangement.
There was also a general letter in August this year where the President directed UNRA to award contract to three Chinese entities. Also, another general letter dated 1st July 2021 Museveni wrote directing the Minister of Education and Sport and the Ministry of Health that beginning Financial Year 2021/22 all contracts or projects for the construction of schools and Health Centers should be given to Uganda Peoples’ Defence Force (UPDF) construction brigade which stills contravenes with the laws of awarding government contracts.
Nsibambi informed the House that President’s actions are not only arbitrary but he is abusing his office.
“We believe with all due respect the President has no mandate under his docket to do whatever he is doing. This is very dangerous for this country and this House to just look on when the fountain of honour is abusing established laws. That is why we seek the active indulgence of this House to stop this kind of conduct because it’s unpalatable, illegal, procedurally wrong and improper,”the MP noted.
He added that Museveni is not only circumventing procurement laws but he is giving an advantage to specific companies hailing from a specific country that must be interrogated.
“… Because when you look at the PPDA act section 79, procurement methods and requirements are specified and specifically there must be open bidding, contractors must not go to the State House, but they must participate in the bidding. It must also follow international bidding requirements, domesticated in terms of requirement, quotation, direct procurement must be done in the process,”Nsibambi said, adding that there must be no discrimination and transparency, accountability and fairness must be at the forefront yet companies that just go and meet the President such qualities may be missed out.
In the case of the UPDF construction brigade, Nsibambi emphasized that they must also participate in the bidding like other companies. He also asked the House not to look on while the country is draining into the sea of loans as Museveni just awards contracts to foreign companies on a Pre-financing basis.
“The most important point we must consider as the House, pre-financing arrangements are loans yet a President cannot guarantee a loan to an entity without the clearance of the August House. It’s my prayer that the ministries who were given these directives should shun them and this House must move and advise the president to stop that arbitrary conduct.”
The leader of opposition Mathias Mpuuga also requested ministries concerned to tell the House their way forward on the President’s orders especially on pre-financing.
“Pre-financing is indirect borrowing without Parliamentary approval because it’s a public debut to paid at the future date and under PMA it’s formal borrowing to which we like the minister of Finance to come and explain their effects including where we have a directive from the president to offer contracts to specific entities we need to know the effects of this of the future economy of our country.”
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