AEGiS-NV: Firms Clash Over Sh900m UAC Deal The New Vision (Uganda)Important note: Information in this article was accurate in 2002. The state of the art may have changed since the publication date.
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Firms Clash Over Sh900m UAC Deal

New Vision (Kampala) - September 16, 2002
Yunusu Abbey


A US $500,000 (about sh900m) World Bank-funded project for supply of audio visual equipment to the Uganda Aids Commission (UAC), has run into trouble.

A Nairobi-based company, Epsilon Broadcast Engineering (Kenya) Ltd., has strongly contested the contract award to MFI Office Solutions of Kampala.

In a September 5 protest letter to the World Bank and health minister, Brig. Jim Muhwezi, Epsilon, the sole authorised distributors for Sony equipment in the region, said there were gross irregularities in the bid evaluation.

Epsilon, which says it has over 10 years practical experience in the audio visual broadcast equipment business, wants the evaluation re-visited.

"It is disappointing to note that the outcome of the result is based on individuals who have totally disregarded the technical queries raised by our engineering department in regards to the specifications offered. Secondly, out of the entire list of bidders (seven), none of the companies is specialised in professional audio and video applications," said Epsilon. "We are greatly offended with the above issue and would appreciate your personal intervention, so as to bring an end to this matter," said the letter, which Epsilon managing director, Ron Oved signed.

Epsilon was reacting to an August 27 letter Dr. Kihumuro Apuuli, the UAC Director-General, wrote to the company informing them that the tender had been concluded. Kihumuro said Epsilon's "bid did not pass the examination as required."

But on Monday, Kihumuro said the commission usually handles all tenders in a transparent manner and ruled out the possibility of having favoured any bidder.

"Every tender is evaluated by a technical team and the results sent to SWIPCO for pre-audit and re-evaluation. After that, the results are sent back to us and finally taken to the board chaired by the Bishop (Barnabas Helem' Imana) for approval," Kihumuro said.

"But since Epsilon has contested the award and appealed to the relevant bodies, the matter will be investigated," Kihumuro added.

Muhwezi and Richard Muhinda, the health ministry's permanent secretary, were unavailable for comment.

Under the deal, the contract winner is expected to supply 122 video projectors, four professional digital cameras, 120 DCAM tapes, one video editing unit and 122 VHS video cassettes among others.

The New Vision first reported about the dispute on May 14, 2002. The article said health ministry officials who dominated the evaluation committee, ignored the engineers' technical advice over the audio visual tender.

Information ministry engineers-Yona Hamala and Nicholas Semujju, had argued that the equipment Mfi planned to supply for the HIV/AIDS awareness programme, could fail to work or fit the others due to wrong specifications.

"MFI, who are the main competitors of Epsilon in the project, are specialised in office equipment and furniture. They have no experience whatsoever in any Audio Visual project of this magnitude," Oved said.

"Epsilon Broadcast Engineering on the other hand has wealth of over 10 years of practical experience in Audio Visual broadcast equipment, including assembling, repairing and training key personnel to efficiently manage and operate the systems in East Africa," he said.

He said: "It is in light of these facts that we feel the project has been awarded based on a number of biased reasons, best known to the Project Co-ordination Team, towards an unqualified bidder."

Oved added: "Epsilon is therefore appealing to all responsible parties who will receive a copy of this letter, to forthwith act in their capacity to ensure citizens benefit."
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