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Uganda Investment Authority (UIA)

In the quiet offices of the Uganda Investment Authority (UIA), tension has been brewing for months.

The Namanve Industrial Park project, a cornerstone of Uganda’s industrialization agenda, was meant to be a shining beacon of progress. Instead, it had become a battleground of clashing egos, rising costs, and conflicting directives.

At the center of the storm stands the Director General (DG) of UIA, a bureaucrat known for bold, sometimes controversial decisions. But this time, his boldness is igniting a firestorm.

The President’s Warning

Months earlier, as whispers of cost escalations and price variations circulated, His Excellency the President had issued a clear directive: Do not pay for the variation of price claims. It was a firm stance, aimed at protecting public funds and ensuring fiscal discipline. To many within UIA, the directive was not just guidance—it was an unshakable mandate.

In the project management office, engineers and financial experts combed through invoices and correspondence with LaganDott, the contractor responsible for delivering the project. The numbers didn’t add up, and objections began to surface. “This variation claim is questionable,” one senior manager remarked during a tense meeting. “It undermines our agreement and could drain our budget.”

The DG listened but remained noncommittal. Some saw this as a tactical move; others feared it was a sign of something brewing.

A Surprise Letter

Then came November 11, 2024—a date now etched in the minds of many at UIA. Without the usual preceding approvals, without consulting the project management team, and without regard for the President’s directive, the DG wrote to LaganDott.

In the letter, the DG confirmed the recovery of advance payments, which, to the surprise of many, included the controversial variation of price.

The move sent shockwaves through the organization. Emails flew back and forth, some urgent, others angry. “How could this happen without our input?” asked a project manager, disbelief etched across his face. Another added, “This defies the President’s directive! What are we supposed to tell the auditors?”

The letter, now a subject of intense debate, had set a precedent. Some saw it as a necessary evil to keep the project moving. Others saw it as a betrayal of trust and protocol.

The Irregular Meeting of November 21

Then came the highly irregular meeting on Thursday, November 21, 2024. Held between officials of UIA, the Ministry of Finance, Planning and Economic Development (MoFPED), and the British High Commission (BHC), this meeting marked a turning point in the unfolding drama.

The agenda: to discuss the Presidential directive and the contractor’s VOP claim. The outcome: an agreement to defy the directive under the guise of instructions purportedly given by the PM Excellence, the Owner’s Engineer. Present at the meeting were:

• Mr. Robert Mukiza, DG of UIA
• Mr. Arinaitwe Louis, an official from BHC
• Mr. Juvenal Muhumuza, also representing MoFPED – (Chairman)
• Eng. Patrick Batumbya, representing PM Excellence
• Mr. Prasad Reddy, representing Contractor LaganDoTT

Despite the gravity of the matter, the meeting was irregular on several fronts:

  1. Unauthorized Representation:

Neither the officials from MoFPED nor the BHC had the authority to make binding commitments on behalf of their respective institutions.

Their presence, while significant (with MoFPED chairing the meeting to dispute directive on VoP), did not carry the weight of formal endorsement, rendering any agreements reached questionable.

  1. Absence of Key Stakeholders:

The conspicuous absence of the line Minister in charge of UIA and the UIA Board left a leadership vacuum at a critical juncture. Their silence on such a pivotal matter raised eyebrows, with many questioning whether it signaled tacit approval or intentional avoidance.

  1. Contradiction of Established Protocols:

By agreeing to override the President’s directive, the meeting participants not only acted beyond their mandate but also undermined the principles of accountability and hierarchy that govern public institutions.

The DG’s Missive

The saga surrounding the Namanve Industrial Park project took another dramatic turn on November 26, 2024, as the Director General (DG) of the Uganda Investment Authority (UIA) lashed out against what he termed a campaign of “fake news.” In a strongly worded statement, the DG accused detractors of engaging in character assassination and attempting to paint him as corrupt, naming names in a bid to clear his image. However, this latest defense has only intensified scrutiny, as irrefutable documentary evidence of misdeeds at UIA has come to light, raising questions about oversight and accountability.

In his statement, the DG categorically denied allegations of corruption and impropriety in handling the contentious Variation of Price (VOP) claims tied to the Namanve Industrial Park project. Referring to ongoing public discourse as “a smear campaign,” he accused unnamed individuals and groups of spreading baseless rumors to tarnish his reputation. “I have worked tirelessly for the good of this institution,” the DG wrote, “and I will not sit back while my name is dragged through the mud by those with hidden agendas.”

Despite the DG’s protestations, the release of new documentary evidence has cast a shadow over the Authority’s operations, painting a picture of systemic lapses that go beyond individual culpability.

The Oversight Deficit

The latest developments have brought the role of oversight bodies under sharp scrutiny. These bodies, tasked with ensuring accountability in public institutions, have so far failed to pick up on clear leads pointing to systemic governance issues. This failure has been described by critics as indicative of either negligence or complicity.

“There are only two plausible explanations for this oversight failure,” remarked a governance expert. “Either the responsible bodies are grossly incompetent, or there is deliberate collusion to shield wrongdoers. Neither scenario is acceptable.”

The Contractor’s Smile

Meanwhile, at LaganDott’s offices, there was a sense of quiet satisfaction. The payment they had long fought for was finally in motion. Yet even they knew the circumstances were unusual.
“It’s rare to see this kind of action without approvals,” one of their executives mused. “But it works for us—at least for now.”

What’s Next?

The events surrounding the Namanve Industrial Park project highlight deep flaws in governance and decision-making within Uganda’s public sector. From the unilateral actions of the DG to the irregular November 21 meeting, the saga is a cautionary tale of what happens when competence and accountability is sacrificed on the altar of lack of oversight.

Namanve Industrial Park Project
Namanve Industrial Park Project

As the dust settles, one question remains: Who will be held accountable for defying a Presidential directive, undermining institutional protocols, and jeopardizing the integrity of one of Uganda’s most significant industrial projects? The answer, it seems, lies in the hands of those willing to confront the truth.

As the story of the DG’s decision unfolds, questions abound. Who should hold the reins in critical project decisions? How should competing directives be managed? And most importantly, how can public funds be safeguarded in high-stakes projects?

For now, the Namanve Industrial Park project moves forward, but its legacy is at risk. Will it be remembered as a triumph of industrial progress or a cautionary tale of mismanagement?

Only time—and perhaps the findings of that independent audit—will tell

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Namanve Industrial Park Project

The procurement of PM Excellence, a little-known UK-based firm, as the Owner’s Engineer (OE) for the €212 million Namanve Industrial Park Project, under the Uganda Investment Authority (UIA), has brought to light a series of alarming irregularities.

These actions, supported by the British High Commission (BHC) and approved by the Public Procurement and Disposal of Public Assets Authority (PPDA), expose glaring loopholes and raise serious concerns about ethical breaches, potential collusion, and an erosion of public trust in governance.

Background to the Project and Initial Advertised Requirements

On 9th November 2022, UIA advertised a call for Expressions of Interest (EOI) to identify firms for the critical OE role. The requirements for eligibility were stringent, reflecting the magnitude of the €212 million project. Key criteria included: –

  1. Experience: Firms were required to demonstrate experience managing at least two projects of similar nature, each valued above USD 200 million.
  2. Financial Capacity: A minimum annual turnover of USD 50 million.

These requirements underscored the necessity for competent, well-established firms with verifiable track records.

How PM Excellence Entered the Picture

On 23rd January 2023, PM Excellence submitted an unsolicited proposal to UIA, expressing interest in the project. This followed a meeting with the United Kingdom Export Finance (UKEF) Africa Representative, Mr. Louis Arinaitwe, who reportedly introduced the opportunity to PM Excellence.

Subsequently, UIA wrote to Mr. Arinaitwe, then the BHC Country Director for International Trade, seeking confirmation that PM Excellence was a credible, professional, and competent firm capable of managing the project.

A Mysterious Omission of Established Firms

Notably, the BHC had, in 2019, submitted a list of eight credible UK firms to the Investment Minister, Hon. Evelyn Anite. These firms—AECOM, ARUP, ATKINS, Mott MacDonald, and others—had extensive experience in multibillion-dollar international projects and adhered to the UK Anti-Bribery and Corruption (ABC) laws.

Curiously, PM Excellence was not among these firms. What’s more troubling is that these firms were never approached or consulted to confirm their disinterest in the project before PM Excellence was advanced as the preferred candidate.

Direct Procurement Approval and Flawed Due Diligence

Despite these red flags, UIA sought and received PPDA’s approval for direct procurement of PM Excellence on 17th February 2023. However, this approval came with two critical conditions: –

  1. Competitiveness: UIA was required to conduct an independent assessment of the contract price to ensure value for money.
  2. Due Diligence: UIA was to carry out a comprehensive review of PM Excellence’s capacity, ensuring compliance with the originally advertised requirements.

Shockingly, neither of these conditions appears to have been fulfilled:
• PM Excellence’s Past Work: Documentation submitted revealed previous project service values ranging from USD 15,000 to USD 30,000—minuscule compared to the project’s scale.
• Company Details: PM Excellence’s UK company registration showed a share value of only GBP 100, with just two employees, registered on 7th November 2017. This information was readily available online.

The Joint Venture Maneuver

On 2nd March 2023, PM Excellence entered a joint venture with MBW Consulting Ltd, granting MBW’s Managing Director Special Powers of Attorney to represent them. This effectively handed over PM Excellence’s role to another firm without UIA’s approval and sidestepped the “British content” justification used to secure PM Excellence in the first place.

Exorbitant Costs and Questionable Expertise

The joint venture charged an astronomical monthly fee of USD 500,000—a rate much higher than typical globally renowned engineering firms with proven expertise. Neither PM Excellence nor MBW had mobilized the necessary technical teams or demonstrated the requisite capacity.

Additional Red Flags

  1. Unanswered Questions about Reputable Firms: Why were the eight reputable UK firms listed by BHC in 2019 ignored?
  2. Fast-tracked Approvals: The rapid pace of procurement raises concerns about undue influence and a lack of proper scrutiny.
  3. Previous Consultant’s Termination: The previous consultant, who underwent rigorous selection processes, was abruptly removed. Why?
  4. Collusion Indicators: The involvement of Mr. Arinaitwe—both as a BHC official and as the individual introducing PM Excellence—raises questions of conflict of interest.

Whistleblower Revelations

A patriotic insider has exposed these questionable dealings, highlighting the syndication of actors within UIA and BHC to push PM Excellence through. The whistleblower asserts that these actions serve selfish interests, undermining public trust and national development objectives.

Erosion of Public Trust

The case of PM Excellence exemplifies how syndicated procurement can harm national interests. By prioritizing shadowy deals over due process, key actors risk sabotaging Uganda’s ability to attract credible investors for future projects.

The Way Forward: Accountability and Reform

To restore integrity, the government must: –

  1. Investigate the Procurement Process: Conduct an indeSyndicated Fraud in Namanve Industrial Park Project: An In-Depth Exposé on the Procurement of PM Excellence
    The procurement of PM Excellence, a little-known UK-based firm, as the Owner’s Engineer (OE) for the €212 million Namanve Industrial Park Project, under the Uganda Investment Authority (UIA), has brought to light a series of alarming irregularities. These actions, supported by the British High Commission (BHC) and approved by the Public Procurement and Disposal of Public Assets Authority (PPDA), expose glaring loopholes and raise serious concerns about ethical breaches, potential collusion, and an erosion of public trust in governance. Background to the Project and Initial Advertised Requirements
  2. On 9th November 2022, UIA advertised a call for Expressions of Interest (EOI) to identify firms for the critical OE role. The requirements for eligibility were stringent, reflecting the magnitude of the €212 million project. Key criteria included:
  3. Experience: Firms were required to demonstrate experience managing at least two projects of similar nature, each valued above USD 200 million.
  4. Financial Capacity: A minimum annual turnover of USD 50 million.
    These requirements underscored the necessity for competent, well-established firms with verifiable track records.
    How PM Excellence Entered the Picture
    On 23rd January 2023, PM Excellence submitted an unsolicited proposal to UIA, expressing interest in the project. This followed a meeting with the United Kingdom Export Finance (UKEF) Africa Representative, Mr. Louis Arinaitwe, who reportedly introduced the opportunity to PM Excellence.
    Subsequently, UIA wrote to Mr. Arinaitwe, then the BHC Country Director for International Trade, seeking confirmation that PM Excellence was a credible, professional, and competent firm capable of managing the project.
    A Mysterious Omission of Established Firms
    Notably, the BHC had, in 2019, submitted a list of eight credible UK firms to the Investment Minister, Hon. Evelyn Anite. These firms—AECOM, ARUP, ATKINS, Mott MacDonald, and others—had extensive experience in multibillion-dollar international projects and adhered to the UK Anti-Bribery and Corruption (ABC) laws.
    Curiously, PM Excellence was not among these firms. What’s more troubling is that these firms were never approached or consulted to confirm their disinterest in the project before PM Excellence was advanced as the preferred candidate.

Direct Procurement Approval and Flawed Due Diligence

Despite these red flags, UIA sought and received PPDA’s approval for direct procurement of PM Excellence on 17th February 2023. However, this approval came with two critical conditions:

  1. Competitiveness: UIA was required to conduct an independent assessment of the contract price to ensure value for money.
  2. Due Diligence: UIA was to carry out a comprehensive review of PM Excellence’s capacity, ensuring compliance with the originally advertised requirements.
    Shockingly, neither of these conditions appears to have been fulfilled:
    • PM Excellence’s Past Work: Documentation submitted revealed previous project service values ranging from USD 15,000 to USD 30,000—minuscule compared to the project’s scale.
    • Company Details: PM Excellence’s UK company registration showed a share value of only GBP 100, with just two employees, registered on 7th November 2017. This information was readily available online.
    The Joint Venture Maneuver
    On 2nd March 2023, PM Excellence entered a joint venture with MBW Consulting Ltd, granting MBW’s Managing Director Special Powers of Attorney to represent them. This effectively handed over PM Excellence’s role to another firm without UIA’s approval and sidestepped the “British content” justification used to secure PM Excellence in the first place.
    Exorbitant Costs and Questionable Expertise
    The joint venture charged an astronomical monthly fee of USD 500,000—a rate more typical of globally renowned engineering firms with proven expertise. Neither PM Excellence nor MBW had mobilized the necessary technical teams or demonstrated the requisite capacity. Additional Red Flags
  3. Unanswered Questions about Reputable Firms: Why were the eight reputable UK firms listed by BHC in 2019 ignored?
  4. Fast-tracked Approvals: The rapid pace of procurement raises concerns about undue influence and a lack of proper scrutiny.
  5. Previous Consultant’s Termination: The previous consultant, who underwent rigorous selection processes, was abruptly removed. Why?
  6. Collusion Indicators: The involvement of Mr. Arinaitwe—both as a BHC official and as the individual introducing PM Excellence—raises questions of conflict of interest.
    Whistleblower Revelations
    A patriotic insider has exposed these questionable dealings, highlighting the syndication of actors within UIA and BHC to push PM Excellence through. The whistleblower asserts that these actions serve selfish interests, undermining public trust and national development objectives.
    Erosion of Public Trust
    The case of PM Excellence exemplifies how syndicated procurement can harm national interests. By prioritizing shadowy deals over due process, key actors risk sabotaging Uganda’s ability to attract credible investors for future projects.
    The Way Forward: Accountability and Reform
    To restore integrity, the government must: –
  7. Investigate the Procurement Process: Conduct an independent inquiry into how PM Excellence was selected, focusing on potential collusion and violations of procurement laws.
  8. Hold Responsible Parties Accountable: Ensure that those involved in bypassing due process face legal consequences.

Revisit the Contract: Review and potentially terminate the agreement if found to be inconsistent with national interests.

  1. Strengthen Procurement Oversight: Tighten regulations to prevent similar incidents in future projects.

Conclusion

The Namanve Industrial Park Project, envisioned as a cornerstone of Uganda’s industrialization agenda, has been tarnished by allegations of fraudulent procurement. This case underscores the urgent need for transparency, accountability, and adherence to ethical practices in public sector management.

  1. The evidence attached is damning, and the call for action is clear: this abuse of public trust and processes must stop. The stakes are too high for Uganda to remain silent.

An independent inquiry into how PM Excellence was selected, focusing on potential collusion and violations of procurement laws.

  1. Hold Responsible Parties Accountable: Ensure that those involved in bypassing due process face legal consequences.
  2. Revisit the Contract: Review and potentially terminate the agreement if found to be inconsistent with national interests.
  3. Strengthen Procurement Oversight: Tighten regulations to prevent similar incidents in future projects.

Conclusion

The Namanve Industrial Park Project, envisioned as a cornerstone of Uganda’s industrialization agenda, has been tarnished by allegations of fraudulent procurement. This case underscores the urgent need for transparency, accountability, and adherence to ethical practices in public sector management.

The evidence attached is damning, and the call for action is clear: this abuse of public trust and processes must stop. The stakes are too high for Uganda to remain silent.

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The Uganda Investment Authority (UIA), under the leadership of Robert Mukiza, in collaboration with Louis Arinaitwe, the Country Director for Trade at the British High Commission (BHC), has become embroiled in a significant scandal.

At the heart of this controversy is the dubious selection of PM Excellence, a little-known UK-based company with questionable financial standing, as the Owner’s Engineer for the Namanve Industrial Park project.

Despite having a reported share value of £100, net assets averaging £5,000, and capital reserves capped at £15,000, this inexperienced firm was awarded a staggering $4.5 million contract to oversee one of Uganda’s most critical industrial developments.

This decision, made in September 2023, raises serious questions about the integrity of UIA’s procurement process. How could such an undercapitalized firm with no proven track record secure such a high-value contract? Even more troubling is that PM Excellence has been tasked with certifying payments worth $5–10 million per certificate on a project valued at £250 million. The circumstances of this contract award suggest gross incompetence, collusion, or outright corruption.

The $4.5 million contract, spanning nine months, was expected to deliver high-quality oversight from UK-trained experts in engineering and project management. However, PM Excellence has failed to deploy any personnel with the required expertise. Despite invoices averaging $500,000 per month (UGX 1.8 billion), there is no evidence of the sophisticated oversight that such expenditures would justify. Comparisons with similar projects under Uganda’s National Roads Authority (UNRA), Kampala Capital City Authority (KCCA), and other ministries reveal astronomically inflated costs, pointing to significant abuse of process.
To compound matters, UIA failed to budget for the payments, leaving PM Excellence unpaid for the entire contract duration. Rather than resolving this glaring oversight, UIA extended the firm’s contract at no cost from June to December 2024, effectively having the company work “for free.” As the contract extension nears its end, UIA is now proposing another UGX 14 billion ($3.8 million) extension for eight additional months, further fueling suspicions of backroom deals and questionable motives.

PM Excellence’s questionable appointment has created a conflict of interest that undermines its objectivity in certifying contractor payments. Without receiving payments for its initial contract, the firm is beholden to UIA management, which controls its extensions and approvals. Simultaneously, PM Excellence appears to serve the interests of the contractor, certifying payments without the necessary scrutiny, ensuring smooth approvals for questionable claims.

The result has been catastrophic for project integrity. Payments to the project contractor have been riddled with:

• Deviations from contractual provisions.
• Outdated cost indices.
• Inconsistent invoicing periods.
• Discrepancies in payment certificates.

These irregularities reveal that PM Excellence lacks the capacity to oversee a project of this magnitude, turning its role into a facade for unchecked mismanagement.

The scandal deepens when considering the termination of the original Owner’s Engineer consortium, a team selected through a transparent process. This consortium, which included reputable UK firms Turner & Townsend and Roughton International, partnered with respected Ugandan firms Joadah Associates and Basic Group, brought unparalleled expertise to the Namanve project. However, UIA claimed a Power of Attorney issue as the reason for their dismissal—a minor administrative hiccup that could have been resolved. Insiders reveal that the true reason was UIA’s failure to pay the consortium’s invoices, which now amount to over $2.5 million, with interest continuing to accrue.

This termination paved the way for PM Excellence, an inexperienced and financially weak firm, to take over. The facts suggest a calculated move to replace credible oversight with a pliable entity that could be manipulated to rubber-stamp questionable payments and decisions.

The evidence points to a scheme orchestrated to siphon taxpayer money. PM Excellence was not selected for its expertise but rather as a convenient tool to facilitate backdoor dealings. UIA’s management, in collaboration with influential actors like Louis Arinaitwe of BHC and others, appears to have prioritized personal interests over public accountability.

The consequences of these actions are clear: public funds are being funneled into entities that add no value, while the Namanve project suffers from poor supervision and mounting delays. Meanwhile, Thursday’s meeting on November 21, 2024, revealed a startling development—UIA plans to defy the President’s directive to withhold payments for the contractor’s unsubstantiated Variation of Price (VoP) claims. This decision reportedly has the backing of PM Excellence, Robert Mukiza, and other senior officials, including Juvenal Muhumuza from the Ministry of Finance.

The Namanve Industrial Park was envisioned as a symbol of Uganda’s industrial progress. Instead, it has become a cautionary tale of corruption, incompetence, and exploitation. The scandal surrounding PM Excellence threatens to derail the project, jeopardize investor confidence, and drain millions from taxpayer coffers.

Ugandans deserve answers. Why was PM Excellence selected despite its glaring lack of qualifications? Why was the initial consortium terminated under dubious circumstances? Who benefits from this mismanagement?

The Ministry of Finance, Parliament, and anti-corruption bodies must urgently investigate the role of UIA, the British High Commission, and other implicated parties in this scandal. The public deserves leadership that prioritizes transparency, accountability, and the responsible use of resources, not one that exploits public projects for personal gain.

This scandal is a wake-up call to overhaul UIA’s procurement processes and governance framework. If decisive action is not taken, Uganda risks turning its most ambitious industrial initiative into a national disgrace. It is time to put an end to fortune hunting and restore integrity to Uganda’s development agenda.

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