On March 18, 2024, Members of Parliament from the Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE) delved into an inquiry regarding a loss of Shs180 million incurred by the Uganda Wildlife Authority (UWA) in a contract related to the gorilla permit system. The investigation stemmed from revelations in the December 2023 Auditor General’s report, which flagged inconsistencies in a contract awarded to MFI Document Solutions.
UWA had engaged MFI to develop software for booking and revenue collection for gorilla permits at a cost of Shs180 million. However, the contract was terminated when MFI failed to deliver the software, despite receiving an initial payment of Shs150 million.
During the inquiry, the Chairperson of COSASE, Hon. Medard Sseggona, questioned Jimmy Mugisa, Director of Finance and Administration at UWA, about the lack of due diligence in the contractor selection process. Sseggona raised concerns about awarding a software-related task to a company specializing in hardware.
Mugisa defended the procurement process, stating that standard procedures were followed. He explained that bids were invited, proposals were evaluated, and MFI was selected as the best bidder. However, he admitted that MFI’s failure to deliver led to contract termination and arbitration to recover the initial payment.
Stephen Masaba, Director of Tourism and Business Development at UWA, acknowledged the committee’s concerns regarding due diligence oversights. He admitted that due diligence was not conducted as part of the scrutiny process.
The committee discovered that other interested bidders were overlooked, including MS U Trust, White Snowman Limited, and Kenya Airport Limited. After failed mediation attempts, legal action was initiated to reclaim the Shs150 million initial payment.
As the session continued, the focus shifted to accountability within UWA’s hierarchy. The committee interrogated the role of the Contracts Committee and raised concerns about the absence of rigorous background checks in the decision-making process.
Deputy Director for Legal and Corporate Affairs, Chemonges, and other UWA representatives faced tough questions regarding their oversight responsibilities. Although Chemonges initially claimed he didn’t recall the officer in charge of due diligence, he later admitted to the committee that there was indeed a lack of oversight.
MP Sseggona expressed concern over the oversight failure, highlighting the significant financial repercussions and legal expenses incurred by UWA. He emphasized the need for due diligence in all contracts to prevent such losses.
The inquiry shed light on the challenges faced by UWA in ensuring accountability and transparency in its procurement processes, prompting calls for improved oversight and adherence to procurement regulations.
