KAMPALA, March 19, 2024 – Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises [COSASE] yesterday quizzed officials from Uganda Wildlife Authority [UWA] over the gorilla permit system that was never delivered by the contractor even after being paid the biggest fraction of the money.
The inquiry followed revelations from the December 2023 Auditor General’s report, highlighting discrepancies in a contract awarded to MFI Document Solutions.
UWA engaged MFI Document Solutions to develop software for booking and revenue collection for gorilla permits at a cost of Shs180 million. The contract was terminated after the private firm failed to deliver the software, despite receiving an initial payment of Shs 150mln.
During the probe, the Chairperson of COSASE, Medard Sseggona asked Jimmy Mugisa, Director of Finance and Administration at UWA to explain the lack of due diligence in the contractor selection process.
“Tell me, how did you conduct due diligence for a company specialising in hardware to undertake software-related tasks? It’s evident that MFI failed to deliver,” said Sseggona.
In response, Mugisa detailed the procurement process, explaining, “We followed the standard procurement procedures. We invited bids for a booking and revenue collection system, evaluated proposals, and selected MFI as the best bidder. Unfortunately, they couldn’t meet their obligations, leading to contract termination. We are currently in arbitration to recover the Shs150 million paid upfront.”
However, Stephen Masaba, Director of Tourism and Business Development, conceded to the committee’s concerns regarding due diligence oversights. “I confirm there was no due diligence as part of the scrutiny,” he said.
The MPs learned that other interested bidders for the project, including MS U Trust, White Snowman Limited and Kenya Airport Limited, were overlooked by UWA.
Following the contract termination, mediation attempts between UWA and MFI Document Solutions failed, leading to legal action to reclaim the Shs150mln initial payment.
On his part, Sabilla Chemonges, the Deputy Director Legal and Corporate Affairs and other UWA representatives faced tough questions regarding their oversight responsibilities. Although Chemonges indicated that he did not recall the officer who was in charge of due diligence, MP Sseggona availed him with documents indicating that he was in charge. He admitted to the committee that there was indeed lack of oversight.
Sseggona expressed concern over the lack of due diligence, emphasising the significant financial repercussions and legal expenses incurred by UWA.
“There is no justification for a contract to proceed without due diligence. This oversight has cost us over Shs150mln, not to mention the ongoing legal expenses,” he said.
https://thecooperator.news/uwa-teaches-youth-to-protect-communities/
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