The Public Procurement and Disposal of Public Assets Authority (PPDA) has suspended three companies from participating in public procurement and disposal proceedings after finding them guilty of breaching the ethical code of conduct for providers.
The sanctions, announced in PPDA Circular No. 3 of 2026 issued on June 23, follow a resolution by the PPDA Board of Directors reached during its meeting on June 18 in accordance with Section 128(a) of the PPDA Act, Cap. 205.
The suspended companies are Okavango Logistics Limited, Dita Limited and Uptown Incorporation Limited. The firms were penalised for offences ranging from failure to perform contractual obligations and abandoning government projects to submitting false documents during the bidding process.
According to PPDA, the disciplinary action is intended to enforce accountability among government contractors and safeguard the integrity of Uganda’s public procurement system.
“The Board of Directors of the Authority at its meeting held on 18th June 2026 suspended the following providers for breach of the ethical code of conduct for providers. The duration and breach are indicated in Table 1,” the circular states.
Okavango Logistics Limited was suspended for one year after PPDA found that it had substantially failed to perform obligations under its contract with Uganda Railways Corporation.
According to the Authority, the company failed to supply materials required for the rehabilitation of two passenger coaches at Nalukolongo Workshop, contrary to the provisions of Section 128(e) of the PPDA Act.
Dita Limited received the heaviest sanction, a three-year suspension, after abandoning works it had been contracted to undertake for Otuke District Local Government.
PPDA said the firm’s actions amounted to a substantial failure to perform contractual obligations, a violation of the ethical standards expected of providers seeking government business.
Meanwhile, Uptown Incorporation Limited was suspended for two years after submitting what PPDA described as a false document during a procurement process.
The Authority said the company presented an unauthentic supplier or distributor authorisation in its bid submitted to the Uganda Revenue Authority, an act that contravenes the Code of Ethical Conduct for Bidders and Providers.
“The above suspension applies to any successor in interest, which includes any entity that is substantially similar to a suspended entity or which employs or is associated with any partner, member, officer, director, responsible managing officer or responsible managing employee of a suspended business entity,” PPDA warned.
The Authority further clarified that the suspension does not absolve the affected companies of their responsibilities under contracts that had already been awarded before the sanctions took effect.
It also directed all procuring and disposing entities not to award contracts to the suspended firms, sell or issue solicitation documents to them, or engage them in fresh procurement dealings during the suspension period, except in relation to existing contracts signed before the penalties.
“During the suspension period, all Procuring and Disposing Entities shall not award contracts to the suspended companies, sell or issue solicitation documents to the suspended companies or in any way solicit bids from them, and enter into any other dealings or communication with the suspended companies except in respect to existing contracts placed prior to the suspension,” the circular reads.
PPDA noted that, in accordance with Regulations 12(9) and 12(10) of the PPDA Regulations 2014, the affected companies may apply for removal from the list of suspended providers after the expiry of their respective suspension periods.
The Authority said the latest sanctions demonstrate its commitment to strengthening transparency, accountability and value for money in public procurement by ensuring that contractors who fail to honour contractual obligations or engage in fraudulent conduct are held accountable.
