President Yoweri Kaguta Museveni has issued a stern warning to Uganda National Roads Authority (UNRA) executive director Allen Kagina against subverting local companies which hurts government efforts to create employment.
Museveni, in a letter dated October 26 asked Kagina to explain why the decision to terminate the contract for Dott Services Limited has not been rescinded despite his order to lift the ban.
In May this year, UNRA cancelled a two year contract whicb was earlier awarded to Dott Services to rehabilitate 200 kilometre Mbale – Nakalama – Tirinyi road over delays in executing its works.
At the time of termination, the contractor (Dott Services) had only done 19% of the total works, with only 3 months left to contract expiry date.
“I recently wrote to you lifting my executive order on this company to allow it to continue with their work in Uganda”
Museveni says that his decision to lift the ban was after the firm agreed to stop delaying government projects with court injunctions whenever they failed to win contracts through the stipulated procurement procedure.
“I am, however, still reading in the papers and being called by leaders from Bukedi region about the terminated contract of Mbale – Tirinyi road,” Museveni states in the letter.
He sought to understand whether the decision to terminate the said contract worth Shs 73 billion was due to his earlier executive order.
“Was this contract terminated because of my executive order? If yes, then it should have been reinstated when it was lifted. Why didn’t this happen and what is the problem?” Museveni asked.
He states tgat blacklisting Dott Services permanently is likely to hurt government’s efforts to create employment.
“My strategy is to create jobs and wealth by supporting local companies in whichever way possible”.
He added tha, “I advise you to follow my method/advice to this war of corruption but also creating a base for our children and grandchildren to be employed. This is why I have at least once pardoned Ugandan companies when they make mistakes.”
He further asked why UNRA did not exploit other avenues outside court to reach a settlement with Dott Services.
Just this week, the High Court dismissed a case in which Dott Services sought a court injunction blocking any issuance of contracts to any other firm on the Mbale – Nakalama – Tirinyi road apart from itself.
UNRA communications officer Allan Ssempebwa when contacted said he hadn’t seen the letter.
Asked if the Authority will comply with the President’s directives, Ssempebwa said once they see the letter they will respond accordingly.