Museveni demotes public asset procurement authority over cunning middlemen

He was presiding over the fourth bi-annual retreat of the Presidential CEO Forum, at the Kiira Motors Corporation in Jinja, on Thursday. This year’s presidential CEO Forum retreat was held under the theme; "Uganda’s industrialization agenda, positioning Uganda as a net source of E-mobility solutions in Africa".

Museveni argues that some PPDA protocols, which sound legally applicable in the course of procuring user items like machinery, are not friendly for large-scale industry setups. In one instance, he said, the PPDA advertised a tender for the procurement of machinery for Atiak Sugar Factory in local newspapers which attracted middlemen, who were preferred for their low prices, yet they were providing fake equipment.

Museveni says that large-scale industry machinery and earth-moving equipment are manufactured by a few factories around the world, whose operators sell them directly to willing buyers.

He argues that PPDA should have opted to engage them rather than advertise in local newspapers, which the key players in that field lack access to.

He says that middlemen or businessmen who normally win these contracts aim at profit maximization and in the long-run purchase substandard equipment in order to earn big from their investments after winning the bids.

Museveni further argues that PPDA should be limited to the purchase of smaller office equipment, stationery and sanitaryware, which are manufactured by several players within the market to boost their fair bargain for government opportunities, but the purchase of large machinery should be settled with the manufacturers.

Barbra Mulwana, the forum’s chairperson challenged Museveni to ensure that Uganda has a reliable power supply to steer the growth of the electronic vehicles industry. She also calls for the enforcement of the cost of power at five USD cents per unit for all industry players across the country, arguing that, such an incentive is key in promoting e-mobility.

Museveni pledged to liaise with the Ministry of Finance in ensuring that Kiira Motors cooperation is availed with the 40 billion Shillings, required in the completion of the motor vehicle plant, slated to be commissioned at the end of the year.

He says that on completion, the government will be their primary customer with the purchase of their buses for schools, ministries and agencies. This, he says, will help them recapitalize and effectively compete with other players in the market.