PPDA suspends 15 companies, 20 under investigation

Mr Benson Turamye, the PPDA executive director, yesterday confirmed the suspension, noting that the 15 companies were, among other irregularities, suspended due to failure to complete their contractual obligations, forging bid securities, forging performance securities, and forging advance payment securities.

“Some failed to comply with professional standards. Going forward, they will not be eligible to participate in any bidding in all government ministries, departments and agencies and even learning institutions,” he said, noting that the suspension does not relieve the provider of responsibility or obligations under any existing contract placed before the suspension.

In the notice, PPDA also indicated that some of the suspended companies had submitted forged unauthentic National Social Security Fund certificates, unauthentic certificates of incorporation, unauthentic reseller’s authorisation letters, forged bank guarantees, and Uganda Revenue Authority (URA) tax clearance certificates. 

However, the affected companies will be allowed to participate in public bidding after the expiry of the period of suspension, upon which a suspended company shall be required to apply in writing, to be removed from the list of suspended providers.

The breaches, Mr Turamye said, had been identified after all government ministries, departments, and agencies were directed by PPDA to do due diligence and report any irregularities.

“We have some that forged experience. We also use the Auditor General’s reports that mostly give us light on shoddy work or abandoned sites,” he said, noting that PPDA was still investigating more than 20 companies for alleged ethical breaches.  For instance, in its notice, PPDA indefinitely suspended Amman Industrial Tools and Equipment for failure to substantially perform a contract leading to a financial loss of $1.7m (Shs6.4b).  

Mr Turamye also noted that PPDA was hastening the process of bringing all government agencies under the electronic government procurement (e-GP) platform to curb the vices that are making the government lose billions of shillings in procurement fraud.

“Currently, things are done manually and there is a lot of paperwork and human contact. Only 36 agencies are on e-GP. This financial year, we had a plan to enroll 250 agencies. If we succeed we will completely curb [fraud]. We have registered over 3,000 contractors and if the e-GP is fully rolled, out efficiency will be realized,” he said. 

Suspended companies and reasons for suspension        

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