Uganda Airlines’ fuel supply contract canceled over suspected foul play

The directive comes after one of the bidders, Mixjet Flight Support FZE filed complaints to Uganda Airlines and PPDA Tribunal claiming that the process was unfair and their disqualification unfounded.

The company argued that the process of awarding contracts for the supply of jet fuel at Entebbe International Airport, which was done in November 2022, was conducted unjustly, was biased, and exhibited discrimination.

According to the documents presented before the Tribunal, at least 10 bids were submitted which returned with Vivo Energy (contract value $12.3 million) and Associated Energy Group (contract value $17.3 million) as the winning bidders for the supply of aviation fuel and in-flight services.

In January 2023, MixJet contested the outcomes through Muhumuza, Kateeba & Co Advocates, citing that there was a lack of evidence of payment of business taxes in the country of origin, non-submission of a registered power of attorney, non-submission of a third party aviation liability insurance, and lack of a statement to the bidder's health.

MixJet also challenged its disqualification noting that Uganda Airlines sidelined it on false grounds of a missing date, that they had not paid prescribed fees, and didn't provide an addressee and name of the person representing it.

The company appealed to Uganda Airlines twice after the disqualification but each time they were rejected.

The Tribunal confirmed that Uganda Airlines has wrongly added an eligibility criterion that was not part of the original document nor standard requirements. That the Airlines had modified the bidding documents issued by PPDA.

It also found foul play even among those who were awarded the contracts citing that the awards were not justified.

“The decision of [Uganda Airlines] dated February 9, 2023, is a nullity and is set aside,” the ruling of the Tribunal reads in part.

Led by the chairman Francis Gimara, the Tribunal panel of six members delivered the ruling saying that the procurement for supply of aviation fuel and inflight support services “is canceled,” and ordering that Uganda Airlines “may re-tender the procurement if it so wishes.”