A whistle-blower has asked the Inspector General of Government (IGG) to investigate a purported fraudulent procurement deal at the Uganda Coffee Development Authority (UCDA).
The whistle-blower, in a dossier dated March 13th, 2019 and received at the office of IGG on March 22nd, 2019 accuses UCDA management of fraudulent practices in the procurement for a Shs8bn fertiliser deal.
In the dossier, the whistle-blower sights syndicated corruption in the procurement for the supply of organic and inorganic fertiliser worth Shs8bn that was advertised in procurement reference number; UCDA/SPLS/18-19/00120.
According to the bid notice, all bidders were requested to submit certificate of product registration from the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF).
However, the bidders protested this requirement saying it was restrictive as it can take up to two years to get this certificate from the ministry.
The whistle-blower identified as Gilbert Opio says there was no need for certificate of production certification since in the same bid bidders were also requested to submit the certificate of conformity issued by Uganda Bureau of Standards since both serve the same purpose.
‘’This restricted the bidding to one local company (Fertiplus Organic Limited) yet this was an open competitive bidding by the virtue of the money involved. This local company will take the tender through corruption since its competing alone,’’ the dossier notes.
It adds, ‘’It is my understanding that once this information, once brought to the attention of the anti-corruption n unit at State House, IGG, PPDA, and UCDA board of directors, these institutions will not condone fraudulent practices committed by Fertiplus Organic Limited in the procurement process.’’
FEERTPLUS ORGANIC IN OTHER FRADULENT DEALINGS
It has also emerged the UCDA favoured Fertiplus is involved in other fraudulent transactions. Details emerging indicate Fertiplus Organic fraudulently and without any right bided for supplies.
In a complaint to UCDA, a one Arthur Tumuhumbise says originally Bokashi Group Ltd is the only authorised dealer in Fertiplus 4-3-3 manufactured by FERM O FEED of the Netherlands and this bidder Fertiplus Organic Ltd had no mandate to bid in the procurement.
Tumuhimbise says that Bokashi Group (U) was incorporated in Uganda in August 2016 and started trading in the above mentioned fertilizer immediately after obtaining the authorization letter from the manufacturer.
“Bokashi Group (U) Ltd has 3 directors originally; Julius Turyamwijuka, Arthur Tumuhimbise and Edwin Mwesigye. On 23rd January 2017, the company admitted Prof Mondo Kagonyera as a shareholder and gave him 25% shareholding,” a document in which the petition is contained reads.
According to facts presented by Arthur, on 17th of April 2018, the company directors resolved to borrow money amounting to UGX 400, 000, 000 (Four hundred millions) from the Microfinance Support Centre. The company indeed obtained the money from the Microfinance Support Centre and continued its purchase of more stock and enhanced its operations.
Arthur adds that he was shocked when he found out that he had been evicted from the company.
“To my surprise and without my knowledge. On 26th July 2018, barely 3 months when we secured the loan, the other 3 directors sat and made a resolution to kick me out as a signatory to the company account. The same 3 Directors of Bokashi have gone ahead to fraudulently form a new company – Fertiplus Organic Ltd which was used to bid for the above supplies without my knowledge,” he says.
According to him, the Directors lied that they were bidding under Bokashi Group (U) Ltd which in actual sense is the authorized dealer in the product that was registered in the Ministry of Agriculture.
“I have just learnt that another company actually was used to bid for the above supplies Not Bokashi Group (U) Ltd as I had earlier been informed,” he says in the petition.
He is now asking the UCDA Executive Director to investigate Fertiplus Organic Ltd.
The BID document required under page 3, ITB11 (h) a certificate of product Registration from Ministry of Agriculture, Animal Industry and Fisheries of Uganda. How did the company that has not existed for even a year obtain this certificate because the Control and Agricultural Chemicals Act 2006 requires? Those are some of the question he wants the UCDA boss to look at when probing the mess in Fertiplus Organic Ltd.
The Financial requirement was an average of 9bn for the last 3 financial years for organic fertilizer. How will a company registered very recently pass this test?
He argues that, “Besides, the company does not have any stock in Uganda, where did it make its sales and from which product. Please check those financial statements and the auditor who stamped them for further reprimand. There is clear conflict of interest among the directors. Same Directors of Bokashi which is dealing in the authorized product cannot be the same directors of Fertiplus Organic Ltd which they are purporting to use for this bid.”
The documents belong to Bokashi, he adds in the petition that is set to rattle feathers.
“I implore you to look at all the documents that were presented for the above bid and you will either find that they belong to Bokashi Group (U) Ltd or they are a forgery. Fertiplus Organic Ltd has never imported any fertilizer to Uganda. Where did it obtain the sample that was submitted to the Ministry of Agriculture and where did they even obtain the sample that was submitted to UCDA as a sample? All this should be investigated,” the document reads.
Arthur has since rubbished Fertiplus Organic Ltd saying, “It is not legible to bid for this procurement owing to the fact that they have forged experience, forged certificate of product registration, forged sample that was submitted to UCDA and forged audited financial services. This fraudulent behaviour by the said directors of this fraudulent company has already been challenged in courts of law by Bokashi Group Ltd pending determination.”
Efforts to reach UCDA boss, Dr. Emmanuel Lyamulemye for a comment were futile as he did not answer calls.
