MPs on the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) have questioned the way the Uganda Electricity Transmission Company Limited (UETCL) awards contracts to private companies, citing gaps in the procurement process.
The legislators raised the concerns after examining findings in the Auditor General’s report, which pointed to cases where contracts were awarded without following all the required procurement procedures.
The committee, chaired by Muwada Nkunyingi, the MP for Kyadondo East, said the findings raised questions about how UETCL selects companies to undertake major projects.
Nkunyingi told the committee that UETCL had invited companies to bid for a project involving the construction of a fibre cable connection from either Kenya or Tanzania.
According to the committee, three companies, including Skynet, Silton and Data Date, expressed interest in the project and submitted bids. However, the companies were later disqualified from the procurement process.
Richard Matsiko, the UETCL executive director, told the committee that the utility had received a directive from President Museveni to consider another company, Samanda, for the project.
The explanation, however, did not satisfy the committee members, who asked UETCL officials to provide evidence showing that the president had specifically directed the company to award the contract to Samanda.
Nkunyingi said the document presented by UETCL did not amount to proof of a presidential directive to award the contract to the company. [WATCH VIDEO]
He questioned why a company that had not gone through the same procurement process as other bidders could be considered for the project.
“Samanda company claimed that they were coming from Tanzania, but we later discovered that they had no attachment,” Nkunyingi told the committee.
The MPs said the issue raised wider concerns about compliance with public procurement rules and whether companies receiving government contracts have the required capacity and experience to undertake the work.
The Auditor General’s findings, according to the committee, showed that some procurement processes at UETCL did not follow all the required stages. The MPs said such gaps could create opportunities for companies that may not be qualified to secure government contracts.
The committee also questioned UETCL officials about long-running land compensation disputes involving people whose land is used for electricity transmission infrastructure.
MPs said some affected landowners have waited for years to receive full compensation, despite their land being used by the government utility for its operations and projects.
The MPs said delayed compensation has continued to affect communities and could lead to unnecessary disputes between UETCL and landowners.
The committee further questioned UETCL over what MPs described as inadequate consultation with other government institutions when making decisions on major projects.
They said UETCL should work closely with the Ministry of Energy and Mineral Development, which oversees the electricity sector, as well as the Ministry of Finance, Planning and Economic Development, particularly on projects involving public funds.
The MPs said involving the relevant ministries and other stakeholders would improve accountability, coordination and value for money in the implementation of electricity projects.
Nkunyingi said the committee was not satisfied with the explanations given by UETCL officials and directed the company to return with additional information to answer the outstanding questions.
The UETCL officials are expected to provide further documents and explanations on the procurement of the fibre cable project, the alleged presidential directive concerning Samanda, land compensation disputes and the involvement of other government agencies in the company’s projects.
The committee said the continued scrutiny was necessary to ensure that public contracts are awarded transparently and that government projects are implemented by competent companies in accordance with the law.
