The Monitor (Kampala)

Uganda: How Shs92 Billion Was Wasted on Shoddy CHOGM Roads

As an inquiry into the alleged misuse of Chogm funds continue, the Auditor General has issued a new report on roads telling how billions were lost in shoddy road deals.

While Shs92 billion was spent, some road construction materials and items used, such as asphalt, sand, stones, steel gratings and paint were, in some instances -less than the specified quantities and of poor quality, the report notes.

The corresponding amount recoverable from various contractors is in billions.

"The consultants and the Ministry (of Works) supervising engineers should be made liable for failure to ensure quality assurance," the Auditor General said.

Details contained in the February 2009 final report on the follow-up of the engineering audit of Chogm road works undertaken by Ministry of Works further gives details on how the tendering processes for various roads were mishandled.

Incomplete work

"(Two years after Chogm) some road repairs have not been completed due to purported delayed payments to contractors. This is causing the roads to deteriorate and will escalate costs of completing the works," the AG report reads in part.

In respect to Shs7.8 billion for Salaama Road, Queen's way, Kampala Road, Mackinnon, Jinja Road and an addendum of 30 other roads, the PPDA didn't clear the tendering process.

When asked why PPDA didn't clear the tendering process, Mr Charles Muganzi, the Permanent Secretary of Works only said, "PPDA declined to give retrospective authority."

Mr Nandala Mafabi (FDC, Budadiri West), who chairs the Public Accounts Committee investigating Chogm expenditures said, "...the contract sums for various roads kept on increasing --some by 134 per cent, without any clearance from PPDA, the procurement body".

"It's surprising that the road rehabilitation programme, which had been estimated at Shs15 billion, ended up costing over Shs40 billion," Mr Nandala added.

Following a request by Cabinet, the Office of the Auditor General in 2008 carried out an audit of the roads' infrastructure, which were repaired or upgraded in preparation for the Chogm activities in 2007. According to the Auditor General, there were direct procurements for roadwork contracts amounting to Shs21 billion.

Use of this method does not allow the government the benefit of competitive pricing and quality. This partly explains the increase and variations in prices for comparable works.

Delayed funds

However, Mr Muganzi who is set to face the Public Accounts Committee next week attributed lack of competitive bidding for some road deals to delayed disbursement of funds and late demands of the Chogm National Task Force.

The report adds: "A number of roads remained uncompleted after Chogm despite payments made to various contractors (yet for) some road works were commenced after Chogm was over, defeating the objectives for which those funds were budgeted for."

The report further says road works for Nakasero and Kololo totalling 48 kilometres were awarded to Spencon and Cementers at a total cost of Shs9.9 billion.

Mr John Muwanga, in his report questioned how maintenance works on 48km could cost about the same as works on 63km.

"It was unusual to pay Shs9.9 billion to contractors for maintenance of only 48.6km yet Shs10 billion was used for emergency repairs of 63 kilometres," Mr Muwanga said.

Further details show that Ministry of Works engaged consultants to carry out design work on a number of Chogm roads. However, some of these roads were never worked on yet the designer had already been paid.


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