President Museveni has written to Uganda National Roads Authority (UNRA) executive Director Allen Kagina wondering why several months after he lifted the executive order on local Construction firm Dott Services, his order has not been followed.
The UNRA on February 2, 2015 signed a contract with Dott Services for the rehabilitation of the 102-Km Nakalama-Tirinyi-Mbale road with a completion date of 24 June, 2017.
However, Dott Services Ltd objected to UNRA supervising the works and commenced adjudication proceedings against the Authority.
This led to what senior UNRA officials described as “irretrievable breakdown of the contractual relationship” between the parties which “negatively impacted” on the project before the contract was cancelled.
In September 2017, China Civil Engineering and Construction Corporation, was declared the best Evaluated Bidder for the project.
Dott Services later secure a court order restraining UNRA from entering into a contract with any other contractor, other than Dott Services Ltd and also restraining the Attorney General from approving/clearing the proposed contract with M/s China Civil Engineering and Construction Corporation.
This sparked uproar with politicians in Eastern Uganda threatening protests over the delayed construction of the critical road that connects the region with the rest of Uganda.
In the letter dated 26th October 2017 also copied to Prime Minister, Minister of Transport and Works, Vice President, President Museveni noted:
“I recently wrote to you lifting my executive order on this company to allow it [ Dott Services] continue with their works in Uganda. This was after they agreed to stop delaying government projects with court injunctions when they fail to win contracts through procurement processes,”
“That was my quarrel with them together with blocking investigations,” the president noted in one page letter.
He added: I am, however, still reading in the papers and being called by leaders from Bukedi region about the terminated contract of Mbale-Tirinyi road. Was this contract terminated because of my executive order? If yes, then it should have been reinstated, when it was lifted. Why didn’t this happen and what was the problem?
President Museveni asked the UNRA executive director to award the contract to Dott Services as way of creating jobs to Ugandans.
“I advise you to use or follow my method/advise in this war of corruption but also creating a base for our children and grandchildren to be employed. This is why I have, at least once pardoned Ugandan companies when they make mistakes. This is my strategy to create jobs and wealth by supporting local companies in whichever way possible’’ Mr. Museveni said.
Dott Services is owned by Venugopal Rao, Maheswara Reddy – managing director of Dott Services – Prasad Reddy and Komi Reddy – all of Indian origin.
The president ends letter with asking Kagina to consider out of court settlement with Dott Services:
‘‘In your letter of 23rd October 2017, you argue that consent judgement is not one of the methods of procurement provided by Law. That May be so, Does that preclude other laws e.g. settlement out of court, amnesty, etc. the Attorney-General will advise me on this’’