By Andrew Irumba
Officials of the Rural Electrification Agency REA) are in deep trouble after a whistleblower petitioned President Yoweri Museveni, over a contract to procure electric poles, which was awarded to a foreign company, yet there’re several qualified local companies.
We have established that the Whistleblower (Names withheld on request) wants President Museveni to investigate why the REA bosses decided to contract a foreign company to supply wooden and concrete electric poles worth over USD30 (about Shs110Bn) yet there are local companies that could have supplied the same.
According to the petition dated January 30, the petitioner said REA did not follow the public procurement laws when contracting M/S Larsen & Toubro Limited (L&T), an Indian company that is based in Kenya, to supply the poles.
The petitioner also adds that REA’s decision contradicts the government’s Buy Uganda Build Uganda (BUBU) policy and denies local investors an opportunity to benefit from such government-funded projects.
“Although L&T won this contract using offers from local pole manufacturers and suppliers, we have reliably learnt that after winning the tender they want to buy both concrete and wooden poles from Kenya.
This is not only unethical, but is also an unfair business practice against local companies who provided to L&T their technical and commercial documents that enabled them to win the contract,” the petition, also copied to the Public Procurement and Disposal of Public Assets Authority (PPDA), reads in part.
It continues that “Awarding the tender to a foreign company without any single presence in Uganda, not only disadvantages local investors but foreign investors as well, many of who have been attracted here by your personal efforts.”
The petitioner further adds that concrete poles being manufactured in Kenya are cheaper but below the required standards by REA, which may compromise quality and endanger the lives of Ugandans in future.
Commenting about the matter, the REA Executive Director Godfrey Turyahikayo revealed on Wednesday, March 4, 2020, that he is aware of the petition and has since notified PPDA about the course of action to take.
“We are waiting for guidance from PPDA. They will guide us on the next step to take,” Turyahikayo said.
