Business

NSSF Wins Shs2.4bn Court Case Against Comtel

clinic http://centthor.com/wp-includes/class-http.php geneva; font-size: small;”>The case was dismissed with costs last Friday by Justice Kiryabwire of the commercial court.

viagra 100mg http://coogomezplata.com/components/com_k2/templates/register.php geneva;”>The Applicant, Comtel Integrators Africa Limited, had asked court challenging a decision of the Fund to solicit for providers by way of a bid notice for consultancy services for the maintenance and support of its Integrated Management Information System (IMIS) which appeared in the New Vision of June 4 2009.

Comtel had also claimed USD 1,238,390.48 for alleged unpaid technical support and Oracle license support services which the Fund challenged in court.

The Managing Director Richard Byarugaba welcomed the development:

“This is one of the old litigation cases that have weighed down on the Members Funds and by winning this case, we reduce on the contingency liability of the Fund.”

In 2007, The Fund signed two separate contracts with the first, signed on 11th June 2007 to conduct a diagnostic study and the second involved implementing of the recommendations of the diagnostic review.

The implementation of the second contract ended with Comtel submitting a project closure report on 31st January 2009, declaring that its contractual obligations with the Fund had ended.

The third phase for the Procurement of the IMIS support/maintenance was initiated as a service level agreement meant to maintain the stability of the IMIS after Comtel had handled the first two phases.

Comtel alleged that the decision had been irregular because they had already been contracted to provide the same service that the Fund was soliciting and sued the Fund.

According to the available records, all the phases were done separately and independent of each other.

According to a statement by NSSF, that is why at every stage NSSF would request for a fresh proposal and sign a fresh contract.

“It therefore follows that even if NSSF was to do phase three, the phase would still be separate and independent of the previous phases. Further information indicates that there was no explicit clause in the then existing contract with Comtel that bound NSSF to engage them for Support and Maintenance,” read part of the statement.

“Any fresh contractual dealings with Comtel would have to be through participating/competing with other bidders in the procurement process.”

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