WHY THE DELAY? PPDA Blacklists Three Firms as CDF Muhoozi Pushes for Rogue Defence Suppliers Crackdown
KAMPALA – Uganda’s procurement watchdog has suspended three companies from participating in government contracts, in a move that comes as Chief of Defence Forces Muhoozi Kainerugaba reportedly intensifies a wider campaign against alleged rogue contractors accused of undermining public procurement, particularly within the defence sector.
The Public Procurement and Disposal of Public Assets Authority (PPDA) announced the sanctions through Circular No. 3 of 2026 issued on June 23, following a resolution of its Board of Directors during a meeting held on June 18.
The circular, signed by Executive Director Benson Turamye, names Okavango Logistics Limited, Dita Limited and Uptown Incorporation Limited as the latest companies suspended from participating in public procurement and disposal proceedings after being found in breach of the ethical code of conduct for providers.
“In accordance with Section 128(a) of the PPDA Act, Cap 205, the Board of Directors of the Authority at its meeting held on 18th June 2026 suspended the following providers for breach of the ethical code of conduct for providers,” the circular states.
THREE FIRMS BARRED
According to PPDA, Okavango Logistics Limited has been suspended for one year after what the Authority described as a substantial failure to perform contractual obligations.
The company is accused of failing to supply materials required for the rehabilitation of two passenger coaches at Nalukolongo Workshop under a contract awarded by the Uganda Railways Corporation.
Dita Limited received the toughest punishment—a three-year suspension—after PPDA concluded that the company substantially failed to perform works it had been contracted to undertake for Otuke District Local Government.
Meanwhile, Uptown Incorporation Limited was suspended for two years after PPDA found it culpable of submitting false documentation during a procurement process involving the Uganda Revenue Authority.
According to the Authority, the company allegedly submitted an unauthentic supplier/distributor authorisation document in support of its bid.
NO GOVERNMENT BUSINESS
PPDA warned all accounting officers in central government, local governments and other procuring entities that the three companies are immediately barred from participating in new procurement processes.
The sanctions, PPDA explained, extend beyond the named companies and may also apply to successor entities, affiliated companies and businesses substantially linked to the suspended providers.
The Authority further noted that suspended providers cannot receive solicitation documents, submit bids or be awarded new government contracts during the suspension period, except where obligations relate to contracts awarded before the sanctions took effect.
PPDA emphasised that suspension does not erase obligations under existing contracts and that affected firms may apply for reinstatement once their suspension periods expire.
The Authority also reminded all procuring entities that information regarding suspended providers remains publicly available through its official register and urged strict compliance with the sanctions.
MUHOOZI’S PROCUREMENT CRACKDOWN
The latest suspensions come amid what defence sources describe as an expanding anti-corruption drive within the Ministry of Defence spearheaded by Gen. Muhoozi.
According to multiple defence sources, the CDF recently ordered a comprehensive review of both local and foreign suppliers doing business with the Uganda People’s Defence Forces (UPDF) after concerns emerged over alleged procurement irregularities, RedPepper has learnt.
Sources say the CDF recently ordered a comprehensive audit of both local and foreign defence suppliers after uncovering what insiders describe as a long-running network of fraudulent contractors allegedly working hand-in-hand with defence ministry corrupt officials to fleece the taxpayer.
The probe reportedly exposed suppliers accused of delivering counterfeit goods, supplying substandard equipment, delivering fewer items than contracted for, or in some cases receiving full payment without delivering anything at all.
The fallout has already been significant.
Several military officials have been arrested, transferred, redeployed or sidelined as investigations gather pace. A number of civilians linked to the procurement schemes have also reportedly been arrested, while others remain under investigation.
Determined to clean up the system, Gen Muhoozi reportedly directed the Ministry of Defence to compile a list of both genuine and unscrupulous contractors (local and foreign) involved in supplying goods, works and services to the Uganda People’s Defence Forces (UPDF).
According to sources familiar with the exercise, the list is intended to serve as a central database of contractors accused of breaching contracts or failing to meet obligations.
“The new mechanism will allow us to effectively monitor and analyse information about contractors who have not fulfilled their contractual obligations to the UPDF,” a defence source told RedPepper.
The information is expected to be shared with both local and international UPDF partners.
However, this Gen. Muhoozi’s anti-corruption drive has now reportedly hit a bureaucratic roadblock.
RedPepper has learnt that the Ministry of Defence has already forwarded the list of questionable suppliers to PPDA, the statutory body mandated to suspend or debar contractors from doing business with government entities.
Under Ugandan law, government ministries cannot independently blacklist contractors. Only PPDA can formally suspend or debar suppliers after investigations into fraud, misconduct, poor performance or contractual breaches.
Sources now claim that PPDA’s response has been slower than expected, creating frustration among officials pushing for immediate action against the listed firms.
Insiders say the delay has not gone down well with the CDF, who is said to be demanding swift action against companies accused of siphoning billions through questionable defence contracts.
The situation could place PPDA’s top leadership under intense scrutiny, with attention reportedly turning to Executive Director Canon Benson Turamye and his team over the pace of handling the defence ministry’s submissions.
Attention has also reportedly shifted to PPDA Director of Legal and Investigations, Uthman Segawa, who doubles as the Authority’s Board Secretary. According to sources, questions have been raised internally about his handling of the matter.
The same sources further allege that Segawa has been preoccupied with efforts to position himself to succeed Executive Director Benson Turamye, whose contract is reportedly nearing its end, rather than concentrating on his current responsibilities.
RedPepper has not independently verified these claims and will publish further details in a subsequent edition.
Meanwhile, investigations into some of the firms on the list are continuing.
One company frequently mentioned by sources is a prominent Kampala-based vehicle dealership and importer allegedly linked to several government vehicle supply contracts. The same firm owned by W. K is reportedly facing scrutiny over claims involving vehicle procurements surrounding the supply of 21 Prado vehicles to Uganda Police.
RedPepper is still verifying and will soon publish full names of firms the CDF want blacklisted.
Watch this space!
GOT A HOT STORY? EMAIL: redpeppertips@gmail.
SOURCE PROTECTION/CONFIDENTIALITY IS OUR NO.1 PRIORITY.
About Post Author
