Published on 17/06/2024
Lawmakers on the Public Accounts Committee (PAC) have sharply criticized Soroti University administrators for mismanaging two contracts worth Shillings 5.5Bn, which were abandoned by contractors before completion.
The issue came to light after the Auditor General’s December 2023 report revealed that Soroti University had contracted Karf Aqua Engineering Solutions to construct a water tank for Shillings 449 million. During construction, the tank collapsed, yet Shillings 324 million had already been paid to the contractor.
The contractor blamed the poor designs provided by the university and demanded the remaining Shillings 135 milion. After receiving this payment, the contractor disappeared, leaving the university without a water tank.
Gorreth Namugga, Vice Chairperson of PAC, expressed frustration, saying, “The way you casually talk about this shows a serious lack of contract management. Once you get back, you need training on the entire process, from signing to execution.”
Soroti University Secretary Stephen Oloya admitted to falling for the contractor’s deception, resulting in the loss of Shillings 135 million. Despite attempts to address the issue, the contractor refused to attend meetings.
“We know we made a terrible mistake trusting the contractor. We are willing to provide any information necessary to help recover the money,” Oloya explained.
Elgon County MP Ignatius Mudimi questioned why the university continued paying the contractor despite evident incompetence in the initial work.
Richard Wanda, the Bungokho Central Constituency Representative rejected the university’s claim of being duped, stating, “You can’t say you were conned when you knowingly paid against all rules. They must be held accountable.”
The university also faced criticism for failing to complete an anatomy block project. The contractor executed the work slowly, leading to funding cuts before completion.
“The contractor was slow, causing us to miss financial targets. We had to mutually terminate the contract when funding ceased,” explained Oloya.
Namugga emphasized that proper contract management, including regular site visits, risk mitigation, and performance guarantees, could have prevented these issues.
The Committee agreed to summon the directors of Karf Aqua Engineering Solutions to explain the loss of funds and substandard work on the water tank project.
