Uganda: MPs Demand Museveni Reverse Directive On Awarding Contracts to NEC

9 July 2024
Nile Post (Kampala)
By Sam Ibanda Mugabi

Legislators on the parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) are concerned that the President's decision of awarding all construction contracts in the Education and Health institutions to National Enterprise Corporation may leave the private sector closed.

The MPs say the President's decision was not on good faith as hundreds of Ugandans who have been working in the private construction companies are bound to lose jobs and their companies can now not get contacts with government.

Officials from Uganda Hotel, Tourism and Training Institute on Monday appeared before Cosase to respond to queries raised in the Auditor General's report for the financial year 2022/2023.

It was in this meeting that committee members found out that a contract for the construction of the girls hostel at the Institute was awarded to UPDF under National Enterprise Corporation (NEC) through a direct bidding at a cost of Shs17bn to which the MPs opposed.

"It's wrong to have NEC get government contracts without competing with other private companies," Buzaaya County MP Martin Muzaale said.

"This will kill the Private sector and government will not lose taxes but also a number of people will lose jobs."

The legislators have asked the President to reconsider his decision and have a competitive bidding for all companies for the sustainability of the private sector in this struggling economy.

The officials were also tasked on their decision not to remit the non tax revenue to the consolidated fund.

This generated a serious debate in the committee with the officials led by their Principal Richard Kawere arguing they had been cleared by the former Treasury Secretary Keith Muhakanizi to retain the non-tax revenue at the Source of the Nile.

Mr Kawere was also grilled on the allegations that he was drawing two government salaries.

"Can you explain that claims that you are earning a government salary as a councillor and at the same time as the principal of the institute?" MP Abadallah Kiwanuka asked.

However, he said he resigned from the councillor position after his appointment to head the Jinja-based hotel and tourism training institute.

Read the original article on Nile Post.

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