The Public Procurement and Disposal of Assets Authority (PPDA) Appeals Tribunal has nullified a contract awarded to Ange&Cathy Enterprise Ltd.
The tribunal, headed by senior counsel Francis Gimara and members Nelson Nerima, Thomas Brookers Isanga, Geoffrey Nuwagira, Paul Kalumba, and Charity Kyarisiima, issued the cancellation order on December 7, 2023, against the contract awarded by Katakwi Local Government to Ange&Cathy Enterprise Ltd.
Ange&Cathy Enterprise Ltd was tasked with constructing a general ward at Aketa HC 11 PHASE 1, as per procurement reference number KATA857/WRKS/23-24/00003 in Katakwi district, at a contract price of Ugx 95,075,000/=. VAT exclusive.
The cancellation followed a complaint filed by Rexco Limited (the applicant) regarding irregularities observed in the procurement process.
Among the irregularities highlighted was the blanket request for consent to correct arithmetic errors, lacking specific details on the errors as required by the bidding document. The tribunal also found the purported open consent to errors by Ange&Cathy Enterprises Ltd to be illegal.
Bids were submitted by three companies: Rexco Limited (the applicant), Ange&Cathy Enterprise Ltd, and Kide Builders and Engineers Ltd.
Rexco Limited lodged a complaint with the tribunal after being disqualified from the process, citing the absence of a valid license to operate.
The tribunal’s findings revealed that Rexco Ltd possessed a valid license and was eligible to compete for the bids.
The tribunal instructed Katakwi district local government to conduct a re-evaluation of the contract.
Citing errors and omissions by the Evaluation Committee, Administrative Review Committee, and the Accounting Officer, the tribunal ruled that the procurement process should be remitted for re-evaluation.
“The respondent is directed to re-evaluate the bids for the procurement process for the construction of a general ward at Aketa Health Centre II in a manner not inconsistent with this decision,” the tribunal ruled.
Additionally, the tribunal mandated that the re-evaluation of bids for the construction of a general ward at Aketa HC II, in line with the decision, bidding document, and the law, must be completed within 10 days.
Furthermore, the tribunal ordered Katakwi district local government to refund administrative review fees to Rexco Ltd.
Ongima Emmanuel Ariko, representing Ange & Cathy Enterprise Ltd, expressed no surprise at the outcome.
“It’s true we had a tribunal meeting held online on November 30th, 2023. We were sent back to the district, and I am now waiting for the final outcome again,” said Ongima.
LCV Katakwi Geoffrey Omolo, who conveyed that the process is normal via WhatsApp, failed to respond to several phone call attempts seeking his comment.
