Firm in Katosi road scam awarded another Shs59bn road contract in Mukono
Chongqing International Construction Corporation (CICO), a firm that was involved in the Katosi road scam has been awarded a contract to construct selected roads in Kira and Mukono Municipalities under the Greater Kampala Metropolitan Area Urban Development Programme (GKMA-UDP) funded International Development Association (IDA) of the World Bank Group.
The roads in particular are Mbogo and Cyprian Kizito all totaling 9kms which will be constructed at shs59bn road. This implies Shs6.5bn will be spent on each kilometer.
Parliament last year gave the government the green light to obtain a loan of up to US$566 million (Shs2.1 trillion) from the International Development Association (IDA) of the World Bank Group to finance this program.
The programme will support infrastructure development including roads, in Kampala, Entebbe, Kira, Makindye-Ssabagabo, Mukono and Nansana municipalities as well as Mukono, Mpigi and Wakiso district local governments.
Of the amount, US$518 million will be availed as a loan whereas US$48 million will be given as a grant.
For these Mukono and Kira municipalities’ roads under LOT 1, CICO beat off competition from Ms.China Wa Yi Co Ltd, Ms. Stirling Civil Engineering, Ms. China Communications Construction Company Ltd, and Techno Three Uganda Ltd with Nashing Construction Private Ltd and among others.
The Africa Development Bank Group (AfDB) in 2017 and again 2020 announced the debarment of Chongqing International Construction Corporation for some period. An investigation conducted by the AfDB’s Office of Integrity and Anti-Corruption established that CICO engaged in fraudulent practice in bidding for contracts in the context of an AfDB-financed road project in Uganda in order to meet the pre-qualification requirements of the tenders. The firm was also found guilty of inflating its purported experience with similar projects in order to meet the pre-qualification criteria.
KATOSI SAGA
In 2014, CICO was part of the Katosi Road Scam where it allegedly connived with EUTWAW, a briefcase company, to sign a contract with UNRA to upgrade Mukono -Katosi-Kyetume Road and in turn subcontracted 100% of the works to CICO without prior knowledge of the employer.
In the ruling delivered by Justice Odonyo, court found that the six entities engaged in an elaborate and complicated scheme to defraud UNRA after evidence indicated that a non-existing company (EUTAW) which has been connived with CICO and did only works estimated to be 3% valued at 6 billion shillings.
The Judge consequently ordered the six entities, including Niu Hong (Country Director of CICO by then) and the non-existing company to refund UNRA.
In the same judgment, Justice Adonyo also ordered the six to pay general damages of Ugx 500 million to UNRA.
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