Five Chinese companies face blacklisting over UNRA billions

The Public Procurement and Disposal of Public Assets Authority (PPDA) has invited the Uganda National Roads Authority (UNRA) Executive Director Allen Kagina to a suspension hearing meeting, starting a process recommended by Parliament, aimed at suspending five Chinese road construction companies accused of fraud.

The companies in question are the China Railway 18^th Bureau (Group) Co Ltd, Chongqing International Construction Corporation, Zhongmei Engineering Group Ltd, China Railway No 3 Engineering Group Ltd and China Railway No 5 Engineering Group Ltd, all accused of tinkering with about Shs30 billion in compensation funds disbursed for Project Affected Persons (PAPs) in some areas where UNRA is undertaking the construction of roads.

According a letter dated January 9 2018, which Eagle Online has seen, the five companies are accused of breach of contract by opening ‘imprest accounts’ for the money meant for PAPs and transacting on the accounts without authorization from UNRA.

“The Authority invites you and any other relevant persons from your entity to attend suspension hearing scheduled to take place on Friday, 2^nd Feb 2018 starting at 9 .00am at the PPDA offices,” the letter to Kagina, signed by the PPDA Acting ED Bradford Ochieng, reads in part.

Ochieng’s letter followed and earlier one by Kagina to the PPDA that accompanied a report by the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), which recommended action against the five Chinese companies.

Led by Bugweri County Member of Parliament Abdu Katuntu, the COSASE investigated and discovered suspicions of breach of contract by the five companies, after which it recommended the suspension of the said companies from carrying out business with UNRA.