Wakilii

Globe World Engineering Uganda Limited v Mbarara City Council and Another (Application 14 of 2023)

Tribunal · [2023] UGPPDPAAT 19 · 2023 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for administrative review of procurement decision before the PPDA Appeals Tribunal
Decision
Appointment of 2nd Respondent as revenue collection agent cancelled and set aside

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Tribunal held that a person whose rights are adversely affected by a procurement decision has standing to apply for administrative review under section 91I(1)(b) of the Public Procurement and Disposal of Public Assets Act, even if not a bidder in an ongoing procurement. The appointment of the 2nd Respondent as revenue collection agent without following the successive stages of the procurement cycle was illegal and an administrative overreach. The provisions of the procurement law are mandatory and must be strictly adhered to.

Outcome

Appointment of 2nd Respondent as revenue collection agent cancelled and set aside

Facts

On 22 August 2022, Mbarara City Council contracted Globe World Engineering (U) Ltd to collect lorry loading and offloading fees at UGX 2,010,000 per week for six months with possible renewal for six more months upon satisfactory performance. On 20 February 2023, the Accounting Officer renewed the contract for four months to 30 June 2023. The Applicant accepted but requested a six-month extension to 22 August 2023. On 27 June 2023, the City Town Clerk informed Division Town Clerks that the Applicant's contract would expire on 30 June 2023 and directed that Ankole United Truck Owners and Drivers Co-operative Society be given an agency for revenue collection for one month at UGX 2,050,000 per week. On 28 June 2023, both Division Town Clerks appointed the 2nd Respondent as agent. The Applicant filed this application on 17 July 2023 challenging the appointment as made without due procurement process.

Issues

  1. Whether the Applicant has locus standi to file this application before the Tribunal?
  2. Whether the Respondent erred in law when it appointed the 2nd Respondent as agent for revenue collection without due procurement process?
  3. What remedies are available to the parties?

Orders

  • Application allowed.
  • The appointment of Ankole United Truck Owners and Drivers Co-operative Society Limited as agent of Mbarara City South Division and Mbarara City North Division in the collection of loading and offloading fees from lorries is cancelled and set aside.
  • The Tribunal's suspension order dated 17 July 2023 is vacated.
  • Each party to bear its own costs.

Rules and key headnotes

Administrative Law — Locus Standi — Section 91I(1)(b) PPDA Act — Person Whose Rights Are Adversely Affected
Under section 91I(1)(b) of the Public Procurement and Disposal of Public Assets Act, any person whose rights are adversely affected by a decision made by the Accounting Officer may apply to the Tribunal for administrative review, and such person need not be a bidder who has applied for administrative review under section 89 of the Act.
Administrative Law — Locus Standi — Applications Not Restricted to Bidders
Applications to the PPDA Appeals Tribunal are not restricted to bidders only but extend to any other persons whose rights are adversely affected by a decision of the Accounting Officer.
Administrative Law — Public Procurement — Definition of Procurement — Appointment of Revenue Collection Agent
The appointment of a co-operative society as agent for revenue collection by a local government constitutes procurement within the meaning of the Public Procurement and Disposal of Public Assets Act and must comply with the successive stages of the procurement cycle.
Administrative Law — Public Procurement — Mandatory Compliance — Successive Stages of Procurement Cycle
The provisions of the Public Procurement and Disposal of Public Assets Act are mandatory and must be adhered to strictly; one cannot move to another stage of the procurement process without fulfilling the first, and noncompliance makes the proceedings fatal.
Administrative Law — Public Procurement — Interim Measures — Avoidance of Vacuum Between Contracts
Where a vacuum may arise between the expiry of an existing contract and completion of a new procurement, the procuring entity should avoid this through proper procurement planning, early variation of the existing contract before expiry, or by managing the service itself (e.g. force account mechanism) while undertaking a new procurement in accordance with law.

Legislation cited (18)

Cases cited (10)

  • Preg-Tech Communications Ltd v Uganda Police Force (Application No. 32 of 2021)
  • Obon Infrastructure Development JV v Mbarara City and Another (Application No. 20 of 2021)
  • Old Kampala Students Association v PPDA and Old Kampala Senior Secondary School (Application No. 20 of 2021)
  • China Civil Engineering and Construction Corporation v Uganda National Roads Authority (Application No. 11 of 2023)
  • MBJ Technologies Limited v Mbarara City and Others (Application No. 17 of 2022)
  • Mbarara City and Another v Obon Infrastructure Development JV (Civil Appeal No. 45 of 2021)
  • Apple Properties Limited v Uganda Human Rights Commission (Application No. 6 of 2023)
  • Tumwebaze Stephen Kiba v Mbarara City Council and Another (Application No. 21 of 2022)
  • Consortium of SRK Exploration Services Ltd and Others v Ministry of Finance, Planning and Economic Development (Application No. 33 of 2022)
  • Galleria in Africa Ltd v Uganda Electricity Distribution Company Ltd, Civil Appeal No. of 2017

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Globe World Engineering Uganda Limited v Mbarara City Council and Another (Application 14 of 2023) 2023 UGPPDPAAT 19 (7 August 2023)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.