Members of Parliament sitting on the Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE) grilled Uganda Wildlife Authority (UWA) officials over a loss of Shs180 million linked to a contract concerning the gorilla permit system.
The inquiry stemmed from revelations in the December 2023 Auditor General’s report, highlighting discrepancies in a contract awarded to MFI Document Solutions.
UWA contracted MFI to develop software for booking and revenue collection for gorilla permits at a cost of Shs180 million. However, the contract was terminated after MFI failed to deliver the software, despite receiving an initial payment of Shs150 million.
The Chairperson of the Committee on COSASE, Medard Sseggona, on 18 March 2024, tasked Jimmy Mugisa, Director of Finance and Administration at UWA, to explain the lack of due diligence in the contractor selection process.
Sseggona questioned, “How did you conduct due diligence for a company specializing in hardware to undertake software-related tasks? It’s evident that MFI failed to deliver.”
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.”
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 Committee discovered that other interested bidders, including MS U Trust, White Snowman Limited, and Kenya Airport Limited, were overlooked. Following the contract termination, mediation attempts between UWA and MFI failed, leading to legal action to reclaim the Shs150 million initial payment.
As the session progressed, the focus shifted to accountability within UWA’s hierarchy. The committee interrogated the role of the Contracts Committee, raising concerns about the absence of rigorous background checks. The proceedings took a contentious turn as members scrutinized the decision-making process behind awarding contracts to unqualified firms.
Amidst the exchanges, Sabilla Chemonges, the Deputy Director of 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 in charge of due diligence, MP Sseggona provided him with documents indicating that he was indeed in charge. He admitted to the committee that there was a lack of oversight.
Sseggona expressed concern over the lack of due diligence, emphasizing the significant financial repercussions and legal expenses incurred by UWA.
Comments are closed.