Chinese firm pleads with IGG over Katosi

What you need to know:

U-turn. The company asks the Ombudsman to allow it continue road works, weeks after dragging the same office to court.

Kampala. Chinese company CICO, which was suspended from the botched Mukono–Katosi road over contract illegalities, has run to Inspector General of Government Irene Mulyagonja, pleading for clemency.
In a November 10 letter to the IGG, a copy seen by this newspaper, the company said it was willing to cooperate.
“Your Lordship, CICO humbly requests to be allowed to continue their project contract for the upgrading of Mukono/Kyetume/Katosi, and as doing so, we will most assuredly be financially timely and politically expedient for both the direct project beneficiaries and the country at large,” the letter reads in part.
The development comes less than a week after the company ran to the Nakawa High Court and secured an order blocking the Uganda National Roads Authority (UNRA) from implementing the IGG’s earlier orders.
Two weeks ago, Ms Mulyagonja directed UNRA to open a fresh procurement process for a new contractor on the mud-ridden 74km Mukono-Katosi road stretch and made further orders “not to entertain any bid by CICO in the new procurement and not to make any payments to the company.
The injunction was granted by Justice Lillian Mwandha on November 6, to halt any action against CICO until the company’s case has been heard and disposed of on January 8, 2015 and to allow the company participate in the emergency procurement.
The IGG acknowledged receipt of the letter but said the company was playing double standards because it had earlier on sought legal action against her directives, but court should examine the mischief behind the suit and who is actually behind it.
“What is important though is that CICO should not be allowed to benefit from its illegal actions in procuring the job. Government was hood winked and it should not allow itself to open up further possibilities of such deceit,” Justice Mulyagonja said.
“And as Ugandans, we should speak with one voice. We should fight fraud and corruption all the time and not let it thrive because there is a possible benefit to a particular person or community.”
Lawyers representing CICO, Muwema & Mugerwa advocates, requested for more time to generate a response.
This newspaper understands that the company has also separately written to President Museveni asking for his intervention in the matter.
The Attorney General, Mr Peter Nyombi, on October 29 wrote to the President, advising him to disregard an earlier opinion by his deputy Freddie Ruhindi, to kick out CICO. Mr Nyombi said there “is no incontrovertible evidence to prove that Eutaw and CICO did collude” to defraud government of Shs24 billion.
CICO had already started preliminary works on the road, having been sub-contracted by Eutaw Constructions Ltd, which reportedly won the original contract. But the IGG ordered the company to halt works when it emerged that Eutaw was a phony company.