News

Gov’t Takes Over Bwindi Hospital Wage Bill

As the Mukono/Katosi road saga continues to puzzle government with the IGG Irene Mulyagonja and the Attorney General Peter Nyombi giving different legal opinions on the way forward, abortion ask http://demo.des.net.id/wp-includes/post.php Chimpreports can exclusively report that President Museveni is to meet cabinet to decide on the future of the road project.

This followed intelligence briefings to Museveni indicating the Eutaw Construction intends to secure a court injunction on re-tendering the road contract as advised by the IGG.

Currently, find CICO, search the Chinese Construction company that was subcontracted to do the job, is on the ground doing work despite the IGG’s insistence that both CICO and EUTAW get off the road.

According to one of the briefs seen by Chimpreports, Museveni was advised that the contract for the project which was signed on 15 November 2013 allowed for sub – contracting but not for the ‘Whole of the Works’.

EUTAW Construction Incorporated seems to have engaged the Chinese company for a substantial part of the work but not the whole works.

As required by the Contract, EUTAW also gave UNRA a Notice of Intention to sub – contract the works in July 2014 and by the time they submitted the contract they had signed off with the Chinese sub – contractor in July 2014.

The IGG had forbade UNRA from carrying out any further transactions in connection to sub – contracting or assigning this contract. As such, UNRA could not approve the sub – contracting proposal of EUTAW.

Museveni was also informed that “EUTAW did not have the capacity to enter into contract with UNRA in the first place and relied on gross misrepresentations to win this contract.”

These misrepresentations started way back in 2010 up to 15 November 2013 when the contract was signed.

On 07 November 2014, EUTAW received a notification of award from UNRA and this is what it used to lure the Chinese contractors to be their sub – contractors.

Sensing an opportunity to do work for an American company that was about to sign a contract with UNRA, the Chinese obliged to the request of EUTAW who by then thought were legitimate having earned that right by being in possession of a notification of award from UNRA.

“The Chinese relied on the fact the UNRA had done the requisite vetting as is normally done for other companies and this is what could have put them in the precarious situation they find themselves in at this time,” Museveni was informed.

“If you look at the progress of work on this project by the Chinese, compared with the Mpigi – Kanoni project which started around the same time, the evidence is there for all to see that they are up to the task and they have the capacity to complete the project.”

Analysis

The immediate risks of not regularizing the Chinese sub – contract notwithstanding the inevitable or required termination of the EUTAW contract and starting a new procurement will be costly for government.

The Chinese contractor will be required to leave the project site as a result of the termination of the EUTAW contract.

The process of demobilization (of camps, quarries, laboratories, equipment, staff, etc.) and reconciliation to determine the work done will take no less than 3 months. In the meantime, work will have come to a standstill as all this progresses.

Officials say the sub – contractor acting on the strength of the contract issued by UNRA to EUTAW may have a right to claim for payment for work done including any claims for bad publicity arising out of their dismissal.

This may involve courts of law which may issue injunctions that could further delay the re-starting of the project. No one can with certainty predetermine the length of any possible litigation that may arise as the Chinese try to save their reputation and recover money for work done so far which cannot be free.

The actions of UNRA until now to allow the now declared sub-contractor to continue work may have some meaning legally that the Chinese can exploit.

On average the under the contract, Government is paying approximately US$ 55,000 – 60,000 per day and of this US$ 30,000 – 35,000 or 60 percent goes towards operational costs of equipment and labour.

Should the project stop, the stoppage costs could account for up to 80 percent of the operational costs for idle plant, equipment and estates i.e. US$ 27,000 – 30,000 per day.

Therefore, on average the Chinese have been spending at least US$ 30,000 per day to keep the Katosi project operational even with Government not paying;

The work done by the Chinese company will not be protected during the stoppage period (demobilization, any court injunctions and procurement of a new contractor). This means that the work so far done with part of Shs 24 Bn advanced to EUTAW and given to the Chinese will be wasted as gravel roads deteriorate from weather and traffic.

This work will not be saved as it cannot be protected being earth and the new contractor will have to do new work altogether.

It’s only once the termination of EUTAW, demobilization of the Chinese and any litigation is concluded that we should start the procurement process.

By this time it may be at least 1 year from now by which time project costs will be higher, the public which had high expectations of the project will be frustrated, etc.

Procurement under emergency is not as fast as one is made to believe. Evidence of this include Mukono – Kayunga – Njeru road which PPDA approved for direct procurement over 8 months back and this procurement has never been concluded.

The Kanungu bridges are another example of an emergency procurement that took over a year to conclude. There is no guarantee that emergency procurement will be done in less than 3 months. It has not happened for such large contracts in the recent past;

New Contractor

Getting a new contractor will obviously come at a higher cost and delayed completion date as opposed to the use of the existing contractor. No new contractor can complete this project using the remaining Shs 140 Bn and complete the project within the remaining 2 ½ years.

In essence, the country and Government are more likely winners if Uganda remain with the Chinese contractor as we shall not spend more than is already contracted and shall have the project completed as planned despite the illegalities EUTAW committed.

There are therefore no strategic (political or economic) advantages to be realized from seeking a new contractor other than creating an opportunity for the opposition parties to attack Government.

The consequences of stopping this project will be more severe politically given that this area is an opposition hot bed and they are waiting for this opportunity to present itself.

The negative consequences of termination are much higher than the gains to be realized from letting the project go on in its difficult form.

Observers say the correct thing to do is to support UNRA regularize the subcontracting arrangements so that the Chinese company is recognized legally and we conclude the project.

After the project is safe, investigations can continue to establish those that are culpable who should be punished for their wrongs.
As the Mukono/Katosi road saga continues to puzzle government with the IGG Irene Mulyagonja and the Attorney General Peter Nyombi giving different legal opinions on the way forward, physician http://contesta.fusolab.net/absrespc_events.php Chimpreports can exclusively report that President Museveni is to meet cabinet to decide on the future of the road project.

This followed intelligence briefings to Museveni indicating the Eutaw Construction intends to secure a court injunction on re-tendering the road contract as advised by the IGG.

Currently, ambulance http://curarlaimpotencia.com/wp-includes/class-ixr.php CICO, the Chinese Construction company that was subcontracted to do the job, is on the ground doing work despite the IGG’s insistence that both CICO and EUTAW get off the road.

According to one of the briefs seen by Chimpreports, Museveni was advised that the contract for the project which was signed on 15 November 2013 allowed for sub – contracting but not for the ‘Whole of the Works’.

EUTAW Construction Incorporated seems to have engaged the Chinese company for a substantial part of the work but not the whole works.

As required by the Contract, EUTAW also gave UNRA a Notice of Intention to sub – contract the works in July 2014 and by the time they submitted the contract they had signed off with the Chinese sub – contractor in July 2014.

The IGG had forbade UNRA from carrying out any further transactions in connection to sub – contracting or assigning this contract. As such, UNRA could not approve the sub – contracting proposal of EUTAW.

Museveni was also informed that “EUTAW did not have the capacity to enter into contract with UNRA in the first place and relied on gross misrepresentations to win this contract.”

These misrepresentations started way back in 2010 up to 15 November 2013 when the contract was signed.

On 07 November 2014, EUTAW received a notification of award from UNRA and this is what it used to lure the Chinese contractors to be their sub – contractors.

Sensing an opportunity to do work for an American company that was about to sign a contract with UNRA, the Chinese obliged to the request of EUTAW who by then thought were legitimate having earned that right by being in possession of a notification of award from UNRA.

“The Chinese are potentially very much a victim of EUTAW’s fraudulent operations as UNRA was. They relied on the fact the UNRA had done the requisite vetting as is normally done for other companies and this is what could have put them in the precarious situation they find themselves in at this time,” Museveni was informed.

“If you look at the progress of work on this project by the Chinese, compared with the Mpigi – Kanoni project which started around the same time, the evidence is there for all to see that they are up to the task and they have the capacity to complete the project.”

Analysis

The immediate risks of not regularizing the Chinese sub – contract notwithstanding the inevitable or required termination of the EUTAW contract and starting a new procurement will be costly for government.

The Chinese contractor will be required to leave the project site as a result of the termination of the EUTAW contract since it is now obvious the American company does not exist.

The process of demobilization (of camps, quarries, laboratories, equipment, staff, etc.) and reconciliation to determine the work done will take no less than 3 months. In the meantime, work will have come to a standstill as all this progresses.

Officials say the sub – contractor acting on the strength of the contract issued by UNRA to EUTAW may have a right to claim for payment for work done including any claims for bad publicity arising out of their dismissal.

This may involve courts of law which may issue injunctions that could further delay the re-starting of the project. No one can with certainty predetermine the length of any possible litigation that may arise as the Chinese try to save their reputation and recover money for work done so far which cannot be free.

The actions of UNRA until now to allow the now declared sub-contractor to continue work may have some meaning legally that the Chinese can exploit.

On average the under the contract, Government is paying approximately US$ 55,000 – 60,000 per day and of this US$ 30,000 – 35,000 or 60 percent goes towards operational costs of equipment and labour.

Should the project stop, the stoppage costs could account for up to 80 percent of the operational costs for idle plant, equipment and estates i.e. US$ 27,000 – 30,000 per day.

Therefore, on average the Chinese have been spending at least US$ 30,000 per day to keep the Katosi project operational even with Government not paying;

The work done by the Chinese company will not be protected during the stoppage period (demobilization, any court injunctions and procurement of a new contractor). This means that the work so far done with part of Shs 24 Bn advanced to EUTAW and given to the Chinese will be wasted as gravel roads deteriorate from weather and traffic.

This work will not be saved as it cannot be protected being earth and the new contractor will have to do new work altogether.

It’s only once the termination of EUTAW, demobilization of the Chinese and any litigation is concluded that we should start the procurement process.

By this time it may be at least 1 year from now by which time project costs will be higher, the public which had high expectations of the project will be frustrated, etc.

Procurement under emergency is not as fast as one is made to believe. Evidence of this include Mukono – Kayunga – Njeru road which PPDA approved for direct procurement over 8 months back and this procurement has never been concluded.

The Kanungu bridges are another example of an emergency procurement that took over a year to conclude. There is no guarantee that emergency procurement will be done in less than 3 months. It has not happened for such large contracts in the recent past;

New Contractor

Getting a new contractor will obviously come at a higher cost and delayed completion date as opposed to the use of the existing contractor. No new contractor can complete this project using the remaining Shs 140 Bn and complete the project within the remaining 2 ½ years.

In essence, the country and Government are more likely winners if Uganda remain with the Chinese contractor as we shall not spend more than is already contracted and shall have the project completed as planned despite the illegalities EUTAW committed.

There are therefore no strategic (political or economic) advantages to be realized from seeking a new contractor other than creating an opportunity for the opposition parties to attack Government.

The consequences of stopping this project will be more severe politically given that this area is an opposition hot bed and they are waiting for this opportunity to present itself.

The negative consequences of termination are much higher than the gains to be realized from letting the project go on in its difficult form.

Observers say the correct thing to do is to support UNRA regularize the subcontracting arrangements so that the Chinese company is recognized legally and we conclude the project.

After the project is safe, investigations can continue to establish those that are culpable who should be punished for their wrongs.
Government is to take over the wage bill for some medical staff at the privately-owned Bwindi Community Hospital in Kanungu district, decease http://cccnt.com.au/wp-content/plugins/the-events-calendar/src/tribe/featured_events/query_helper.php starting next financial year.

The Prime Minister, http://cmlsociety.org/wp-includes/class.wp-dependencies.php Dr Ruhakana Rugunda said, under the government programme of supporting non-for-profit health facilities, the move would relieve the hospital of some of the financial burden.

It would also boost the morale of the health workers.

“Surely, Bwindi needs to be supported and we agreed in principle that the Ministry of Health should take over some of the load in form of footing the salaries of a few medical personnel there,” said Dr Rugunda.

He was meeting the Italian Ambassador to Uganda, Stefano Dejak at the Office of the Prime Minister on Friday.

Dejak announced his Embassy’s donation of an ambulance and assorted medicines and drugs to St Kizito, Matany Hospital in Moroto, requesting the government to wave Value Added Tax on the items.

The meeting was also attended by Bwindi’s Principal Hospital Administrator, Can. Charles Byarugaba and Fredigitto Mario of Sustain for Life, an international charity that helps marginalised communities in developing countries to become self-sufficient.

Dejak was accompanied by Massimo Gini, the founder of the charity, who decried the state of intensive care services at Bwindi hospital.  He said he was inspired to help the hospital when he visited the nearby Bwindi National Park to view gorillas.

Bwindi Community Hospital, owned and managed privately by the Church of Uganda, provides health services to over 120,000 members of the surrounding communities. It is one of the best managed hospitals in the country but is inadequately funded.

Responding to a request by its Management to take over their entire wage bill, Dr Rugunda said the Ministry of Health would incorporate their request in next financial year’s national budget proposals.

Rugunda also met European Ambassadors under their umbrella of the European Delegation in Uganda, led by Kristian Schmidt.  They sought Uganda’s views and contribution on stemming Climate Change and greenhouse emissions.

“We in Uganda are not significant polluters but we have a role to play in reducing greenhouse emissions,” Dr Rugunda noted. Uganda emits 0.1 percent. Rugunda said the country was focusing on sustainable development through partnerships.

The meeting was also attended by the Minister of Lands, Housing and Urban Development, Daudi Migereko, who said the government would incorporate greenhouse gas issues in the proposed Urban Policy to protect the environment.

The State Minister for the Environment Flavia Munaaba and the Permanent Secretary in the Ministry, David Obong also attended. Munaaba appealed to the developed world to avail the necessary funding for reduction of gas emissions.

“The EU is aware that not everyone can be expected to make the same contribution but we need to make a moral case that everyone must contribute,” Schmidt said.

He explained that the EU countries had committed themselves to reducing greenhouse gas emissions globally by at least 40 percent below the 1990 levels by 2030.

Comments

Header advertisement
To Top