Lominda Afedraru
3 October 2008
A South African Company that won the contract to make national identity cards has filed a case that could see the government pay Shs82.5 billion in damages for breach of contract. Face Technology, through Nangwala, Rezida and Co Advocates, is suing the Attorney General jointly with Uganda Bureau of Statistics.
In March 2005 the government through Uganda Bureau of Statistics invited both national and international companies to bid for the identity cards' contract. 23 companies then applied for the contract but the government selected Face technology as the winner.
On January 6, 2006, the Ministry of Finance negotiated the terms of the contract with the company agreeing that the company would pay for all transaction expenses.
The company claims to have commenced a countrywide survey and set up unique infrastructure in preparation for the work. The company now says they are stranded with the machines.
It was then that Uganda Bureau of Statistics in on February 2, 2006 wrote to its management suspending the project on grounds that the IGG was carrying out investigations on accusations by aggrieved bidders. The Court has issued summons giving the government and Uganda Bureau of Statistics 15 days to respond to the case.
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