MPs Scrutinize 15 Billion Shillings NAADS Expenditure for Bush Clearing
National Agricultural Advisory Services (NAADS) has come under fire from Members of Parliament (MPs) for alleged violations of procurement regulations.
National Agricultural Advisory Services (NAADS) has come under fire from Members of Parliament (MPs) for alleged violations of procurement regulations. MPs on the Committee of Commissions, Statutory Authorities and State Enterprises (COSASE) raised concerns regarding the direct procurement of Horyal Company Limited by NAADS to support the Atiak sugar cane factory.
During a meeting led by the NAADS Secretariat’s Executive Director, Samuel Mugasi, on August 9, 2023, the committee discovered that NAADS had paid Horyal Company Limited a substantial sum of Shs15 billion to clear 15,000 acres of bush land in Lamwo district for sugar cane cultivation. Notably, a Memorandum of Understanding between Horyal and women’s groups was established to provide labor for the project.
Eunice Katto, NAADS Head of Procurement, defended the direct procurement of Horyal, citing the need for swift action due to the rainy season and the time-consuming nature of the open bidding process. Katto also highlighted the existence of the memorandum of understanding as a factor in their decision.
However, Hon. Ronald Ndyomugenyi, the Committee’s lead counsel, challenged this justification. He argued that the direct procurement violated the Public Procurement and Disposal of Public Assets Act, which mandates bidding for contracts of such magnitude.
Another MP, Hon. Bumali Mpindi, questioned the qualification of bush clearing for direct procurement and expressed skepticism about the Shs15 billion expenditure for this activity. He questioned why the process hadn’t been subjected to bidding to encourage participation from other companies.
In response, NAADS ED Samuel Mugasi revealed that the decision for direct procurement was made following a directive from the Minister of Finance, Planning and Economic Development. He pointed out that a series of letters, including one from the Prime Minister and another in 2018, emphasized collaboration with Horyal for the financing of the sugar cane project.
Mugasi highlighted that in one of these letters, the Minister of Finance instructed NAADS to enter into a contract with Horyal to secure funds for the completion of the sugar cane outgrowers scheme. The government holds a 40 percent minority stake in the Atiak Sugar factory.
