Members of Parliament from the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) have launched an inquiry into the Uganda Wildlife Authority (UWA) following revelations of a loss amounting to Shs180 million in a contract linked to the gorilla permit system.
The inquiry comes after the December 2023 Auditor General’s report highlighted irregularities in a contract awarded to MFI Document Solutions.
UWA had contracted MFI to develop software for booking and revenue collection for gorilla permits, with a contract value of Shs180 million. However, the contract was terminated when MFI failed to deliver the software despite receiving an initial payment of Shs150 million.
During the inquiry, COSASE Chairperson Hon. Medard Sseggona questioned Jimmy Mugisa, UWA’s Director of Finance and Administration, about the lack of due diligence in the contractor selection process.
Sseggona expressed disbelief, asking, “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.”
Mugisa defended the procurement process, stating, “We followed standard procurement procedures. We invited bids, 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, UWA’s Director of Tourism and Business Development, admitted to the committee’s concerns regarding due diligence oversights, saying, “I confirm there was no due diligence as part of the scrutiny.”
The Committee discovered that other potential bidders, including MS U Trust, White Snowman Limited, and Kenya Airport Limited, were overlooked during the procurement process. After the contract termination, attempts at mediation between UWA and MFI failed, resulting in legal action to reclaim the Shs150 million initial payment.
As the inquiry progressed, attention shifted to accountability within UWA’s hierarchy, with questions raised about the role of the Contracts Committee and the absence of rigorous background checks.
Sabilla Chemonges, UWA’s Deputy Director of Legal and Corporate Affairs, faced tough questioning regarding oversight responsibilities. Although initially unsure of the officer in charge of due diligence, Chemonges later admitted to the committee that there was indeed a lack of oversight.
Expressing concern over the financial and legal implications, Sseggona emphasized, “There is no justification for a contract to proceed without due diligence. This oversight has cost us over Shs150 million, not to mention the ongoing legal expenses.”
The inquiry highlights the need for enhanced scrutiny and accountability in the procurement processes of government agencies like UWA to prevent such losses in the future.
