{UAH} MPs Unearth Rot in Vehicle Inspection Contract
|
5:17 AM |
No comments |
MPs Unearth Rot in Vehicle Inspection Contract
28 Jul 2017, 13:43 Comments 372 Views Kampala, Uganda Parliament ReportFormer Works Ministry Contracts Management Committee chairperson Denis Sabiiti.Login to license this image from 1$.
In short
The works and transport ministry abdicated its duties on mandatory vehicle inspection leaving it in the hands of the private contractor, URN has learnt. Documents accessed by URN and those before parliaments physical infrastructure committee indicate inaction from the ministry right from the stage of carrying out due diligence on Societe Generale De Surveillance SGS to the actual implementation process.
Audio is only available to paying subscribers.
The works and transport ministry abdicated its duties on mandatory vehicle inspectionleaving it in the hands of the private contractor, URN has learnt.
Documents accessed by URN and those before parliament's physical infrastructure committee indicate inaction from the ministry right from the stage of carrying out due diligence on Societe Generale De Surveillance (SGS) to the actual implementation process.
The initial award of the contract to SGS by the works ministry in 2009 was contested in court by one of the companies that bid for the same and the litigation resulted into the halting of the contract which was six years later, however, given a go-ahead.
A copy of the contract for mandatory vehicle inspection between SGS and the Ministry of Works and Transport indicates March 17, 2015 as the signing date.
With SGS having emerged the best evaluated bidder, the works and transport ministry was to immediately carry out due diligence on the contractor's similar works of vehicle inspection in Spain and Ivory Coast.
However, URN learnt that the ministry's Procurement and Disposal Unit (PDU) irregularly performed the mandate of the Contracts Management Committee of appointing the due diligence team and also okayed a checklist of issues that were supposed to be looked out for.
The Rubanda West MP, Eng. Denis Sabiiti, who was the then chairperson of the Contracts Management Committee made this revelation also indicating that he didn't have the checklist used by the due diligence team despite having approved the due diligence report.
Sabiiti who chaired the works ministry contracts committee from 2013 to 2015 appeared before parliament's physical infrastructure committee on Thursday. The committee is investigating operations of SGS in the country.
Sabiiti explained to the committee chaired by Luweero Woman MP Lillian Nakatte what the works ministry intended to find in the due diligence on SGS.
//Cue in: "In this due...
Cue out:...in that country."//
Sabiiti confirmed to the physical infrastructure committee that the recommendations of the due diligence report he approved had addressed all the concerns that the ministry was looking for.
However, this did not go well with MP Nakatte and other committee members who noted that the due diligence report available to the committee lacks confirmation from the authorities in Spain and Ivory Coast on whether there was satisfaction with the quality of work that SGS had done in the two countries.
"The due diligence was not thorough; the report doesn't seem to show anything technical about the operations of SGS. How can you say you approved something with no details? How did you confirm that it was well with SGS?" Eng. Nakatte asked.
West Budama North MP Richard Othieno Okoth also noted that the due diligence report lacked details about SGS works in Ivory Coast and Spain. He said that the technical interrogation done by the works ministry team was not detailed and did not include the type of equipment used, which would confirm that the equipment SGS had proposed in its bid was actually the one that was installed.
"This is a critical stage during the evaluation of a bidder because should the best evaluated bidder be found to be wanting from the results of the due diligence, then automatically due diligence would be required or done on the next best bidder who would take on the contract," one of the technical people attached to the committee said.
Meanwhile, information before the physical infrastructure committee also indicates that the works ministry abdicated its responsibility of appointing a Project Implementation Team to oversee the implementation of the terms and conditions outlined in the SGS contract.
However, the physical infrastructure committee learnt from both Sabiiti and lawyer Andrew Karamagi that the supervision is carried out single-handedly by a one Ronald Amanyire currently a senior Inspector of Vehicles in the Ministry.
The committee learnt that Amanyire, who was involved in the evaluation of bidders and undertaking of a due diligence on SGS, is solely supervising works of SGS.
Lawyer Karamagi described the acts of Amanyire as collusion between the public official and a private company.
//Cue in: "In what capacity...
Cue out:...corporation."//
Eng. Sabiiti also noted that there has been hardly any good supervision of SGS by the works ministry saying that the single supervision of Amanyire makes it easy to compromise him than it would have been with a complete team.
Parliament's physical infrastructure committee cited a danger of having no implementation team saying that currently, the works and transport ministry cannot effectively monitor the implementation of the vehicle inspection contract hence the country standing a high chance of losing money.
It was also noted that due to lack of supervision, it is hard for the ministry to determine the earnings by SGS and therefore the share of the concessional fees due to the government.
The contract requires that 10 percent concessional fees are paid to the government while SGS earns up to 90 percent of the inspection fees to enable it recoup its investment of up to 12.5 million US Dollars in setting up the seven inspection centres in a period of 18 months.
"In the two and half years that SGS has been operating, there is no evidence of minutes of the implementation team supervising SGS and its work," one of the technical staff attached to the physical infrastructure committee told URN.
URN also learnt that there are no implementation parameters or indicators setting out the expected performance from SGS and reviewing progress towards achieving these targets.
Documents accessed by URN and those before parliament's physical infrastructure committee indicate inaction from the ministry right from the stage of carrying out due diligence on Societe Generale De Surveillance (SGS) to the actual implementation process.
The initial award of the contract to SGS by the works ministry in 2009 was contested in court by one of the companies that bid for the same and the litigation resulted into the halting of the contract which was six years later, however, given a go-ahead.
A copy of the contract for mandatory vehicle inspection between SGS and the Ministry of Works and Transport indicates March 17, 2015 as the signing date.
With SGS having emerged the best evaluated bidder, the works and transport ministry was to immediately carry out due diligence on the contractor's similar works of vehicle inspection in Spain and Ivory Coast.
However, URN learnt that the ministry's Procurement and Disposal Unit (PDU) irregularly performed the mandate of the Contracts Management Committee of appointing the due diligence team and also okayed a checklist of issues that were supposed to be looked out for.
The Rubanda West MP, Eng. Denis Sabiiti, who was the then chairperson of the Contracts Management Committee made this revelation also indicating that he didn't have the checklist used by the due diligence team despite having approved the due diligence report.
Sabiiti who chaired the works ministry contracts committee from 2013 to 2015 appeared before parliament's physical infrastructure committee on Thursday. The committee is investigating operations of SGS in the country.
Sabiiti explained to the committee chaired by Luweero Woman MP Lillian Nakatte what the works ministry intended to find in the due diligence on SGS.
//Cue in: "In this due...
Cue out:...in that country."//
Sabiiti confirmed to the physical infrastructure committee that the recommendations of the due diligence report he approved had addressed all the concerns that the ministry was looking for.
However, this did not go well with MP Nakatte and other committee members who noted that the due diligence report available to the committee lacks confirmation from the authorities in Spain and Ivory Coast on whether there was satisfaction with the quality of work that SGS had done in the two countries.
"The due diligence was not thorough; the report doesn't seem to show anything technical about the operations of SGS. How can you say you approved something with no details? How did you confirm that it was well with SGS?" Eng. Nakatte asked.
West Budama North MP Richard Othieno Okoth also noted that the due diligence report lacked details about SGS works in Ivory Coast and Spain. He said that the technical interrogation done by the works ministry team was not detailed and did not include the type of equipment used, which would confirm that the equipment SGS had proposed in its bid was actually the one that was installed.
"This is a critical stage during the evaluation of a bidder because should the best evaluated bidder be found to be wanting from the results of the due diligence, then automatically due diligence would be required or done on the next best bidder who would take on the contract," one of the technical people attached to the committee said.
Meanwhile, information before the physical infrastructure committee also indicates that the works ministry abdicated its responsibility of appointing a Project Implementation Team to oversee the implementation of the terms and conditions outlined in the SGS contract.
However, the physical infrastructure committee learnt from both Sabiiti and lawyer Andrew Karamagi that the supervision is carried out single-handedly by a one Ronald Amanyire currently a senior Inspector of Vehicles in the Ministry.
The committee learnt that Amanyire, who was involved in the evaluation of bidders and undertaking of a due diligence on SGS, is solely supervising works of SGS.
Lawyer Karamagi described the acts of Amanyire as collusion between the public official and a private company.
//Cue in: "In what capacity...
Cue out:...corporation."//
Eng. Sabiiti also noted that there has been hardly any good supervision of SGS by the works ministry saying that the single supervision of Amanyire makes it easy to compromise him than it would have been with a complete team.
Parliament's physical infrastructure committee cited a danger of having no implementation team saying that currently, the works and transport ministry cannot effectively monitor the implementation of the vehicle inspection contract hence the country standing a high chance of losing money.
It was also noted that due to lack of supervision, it is hard for the ministry to determine the earnings by SGS and therefore the share of the concessional fees due to the government.
The contract requires that 10 percent concessional fees are paid to the government while SGS earns up to 90 percent of the inspection fees to enable it recoup its investment of up to 12.5 million US Dollars in setting up the seven inspection centres in a period of 18 months.
"In the two and half years that SGS has been operating, there is no evidence of minutes of the implementation team supervising SGS and its work," one of the technical staff attached to the physical infrastructure committee told URN.
URN also learnt that there are no implementation parameters or indicators setting out the expected performance from SGS and reviewing progress towards achieving these targets.
Gwokto La'Kitgum
----------------------------------------------------------------
"Even a small dog can piss on a tall building" Jim Hightower
Disclaimer:Everyone posting to this Forum bears the sole responsibility for any legal consequences of his or her postings, and hence statements and facts must be presented responsibly. Your continued membership signifies that you agree to this disclaimer and pledge to abide by our Rules and Guidelines.To unsubscribe from this group, send email to: ugandans-at-heart+unsubscribe@googlegroups.com
0 comments:
Post a Comment