Traders Threaten to Sue Mbarara City Council Over Ghost Contractors and Fraudulent Market Tender
By Amos Tayebwa – Mbarara
The row over the Nyamityobora Matooke Daily Market contract has deepened, with traders now threatening to drag Mbarara City Council to court over alleged fraud, corruption, and the use of ghost contractors in the tendering process.
Law firm Ngaruye Ruhindi, Spencer & Co. Advocates, acting on behalf of the Kakoba Matooke Traders Co-operative Society Ltd, has issued a seven-day ultimatum to the City Council to cancel the contract awarded to Kacyber Security Technologies Ltd or face legal action.
In their demand notice, the traders accuse the Council of fraudulently awarding the market revenue collection tender to a company that never submitted a bid.
“Unless you do the above within seven days from the date of receipt of this notice, we shall unfold the legal machinery and unleash the full force and wrath of the law against you and all those involved in the fraudulent deal,” the notice reads in part.
Ghost Company Exposed
The scandal stems from a letter dated October 22, 2025, written by Timbet Advocates on behalf of Kacyber Security Technologies Ltd, notifying the City Town Clerk, Justine Barekye, that someone had fraudulently used their company name and documents to apply for the Nyamityobora market tender.
The law firm demanded that the Council release the full details of the individual(s) who submitted the bid using Kacyber’s name — including identification, contacts, and all supporting documents — within 14 days. However, sources reveal that the Council has failed to comply, and the deadline has already lapsed.
According to insider reports, the tender was secretly awarded to a ghost contractor, allegedly fronted by a businessman identified as Joseph Kiiza from Isingiro District. Kiiza is accused of conniving with officials in the City Procurement Office to fraudulently win the tender using Kacyber’s credentials.
Traders Demand Fresh Award
The Kakoba Matooke Traders Co-operative Society, which was the runner-up in the bidding process, has now demanded that the tender be re-awarded to them, arguing that the winning bid was obtained through deception and corruption.
Meanwhile, tension continues to rise within City Hall. Sources allege that earlier this week, one official from the Procurement Office was spotted in the LC1 Chairperson’s office in Central Cell, Nyamityobora, carrying official agreement letters. The documents were reportedly being backdated and signed secretly as the Inspectorate of Government (IGG) prepares to open investigations into the scandal.
Observers warn that Mbarara City Council risks huge financial losses and legal consequences due to the alleged irregularities in the procurement process.
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