Kili BK Enterprises Limited v Arua City Council [2025] UGPPDPAAT 40
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The Tribunal held that an Accounting Officer conducting an administrative review lacks authority to re-evaluate bids or make contract award decisions, as these functions are reserved for the Evaluation Committee and Contracts Committee respectively under the Public Procurement and Disposal of Public Assets Act. The Accounting Officer's decision to set aside the contract award to the Applicant and award it to another bidder was ultra vires and invalid. The matter was remitted for re-evaluation by a newly constituted Evaluation Committee to address conflict of interest concerns.
Outcome
Matter remitted to Respondent for re-evaluation by newly constituted Evaluation Committee
Facts
Arua City Council initiated a procurement for collection of revenue from an abattoir in Arua Central Division. Four bidders submitted bids on July 17, 2025. The Respondent issued a best-evaluated bidder notice on August 1, 2025, naming Kili BK Enterprises Ltd as the best-evaluated bidder at UGX 28,050,000 per month. Rainbow Market Vendors Association Ltd filed a complaint with the Accounting Officer on August 11, 2025. The Accounting Officer appointed an Administrative Review Committee which found irregularities in the appointment of the Evaluation Committee Chairperson and alleged conflicts of interest in the Applicant's bid. On August 14, 2025, the Accounting Officer adopted the Committee's findings, set aside the award to Kili BK Enterprises Ltd, and awarded the contract to Rainbow Market Vendors Association Ltd at UGX 26,250,000 per month. Kili BK Enterprises Ltd filed this application on August 25, 2025, challenging the Accounting Officer's decision.
Issues
- Whether the Accounting Officer erred in law and fact when he purported to evaluate bids in the course of conducting an administrative review and consequently awarded the contract to Rainbow Market Vendors Ltd.
- Whether the Accounting Officer erred in law and fact when he awarded the contract to Rainbow Market Vendors Ltd without cancelling and setting aside the award of the contract to the Applicant.
- Whether the Accounting Officer erred in law and fact when he awarded the contract to Rainbow Market Vendors Ltd.
- Whether the Accounting Officer acted irregularly by selectively cancelling the award of the contract to the Applicant and awarding it to Rainbow Market Vendors Ltd despite the same Evaluation Committee handling multiple procurements for the same Entity.
Orders
- Application allowed.
- Decision of the Respondent's Accounting Officer dated August 14, 2025 set aside.
- Award of contract to Rainbow Market Vendors Association as communicated in the Accounting Officer's decision dated August 14, 2025 set aside.
- Respondent directed to re-evaluate the bids in the impugned procurement in a manner not inconsistent with this decision and the law.
- Bids to be evaluated by a new evaluation committee within 10 days of the Tribunal's decision date.
- Tribunal's suspension order dated August 25, 2025 vacated.
- Each party to bear its own costs.
Rules and key headnotes
Legislation cited (15)
- Public Procurement and Disposal of Public Assets Act Cap 205 s.26
- Public Procurement and Disposal of Public Assets Act Cap 205 s.28(1)(e)
- Public Procurement and Disposal of Public Assets Act Cap 205 s.28(1)(j)
- Public Procurement and Disposal of Public Assets Act Cap 205 s.30(a)
- Public Procurement and Disposal of Public Assets Act Cap 205 s.31(1)(c)
- Public Procurement and Disposal of Public Assets Act Cap 205 s.39(1)
- Public Procurement and Disposal of Public Assets Act Cap 205 s.40
- Public Procurement and Disposal of Public Assets Act Cap 205 s.41(a)(ii)
- Public Procurement and Disposal of Public Assets Act Cap 205 s.81
- Public Procurement and Disposal of Public Assets Act Cap 205 s.106(7)
- Public Procurement and Disposal of Public Assets (Evaluation) Regulations 2023 reg.3(1)
- Public Procurement and Disposal of Public Assets (Evaluation) Regulations 2023 reg.4(9)
- Public Procurement and Disposal of Public Assets (Administrative Review) Regulations 2023 reg.5
- Public Procurement and Disposal of Public Assets (Administrative Review) Regulations 2023 reg.6(c)
- Public Procurement and Disposal of Public Assets (Administrative Review) Regulations 2023 reg.8
Cases cited (4)
- Nalu Tours and Travel Ltd v Jinja City (Application No. 30 of 2022)
- Nalu Tours and Travel Ltd v Jinja City (Application No. 19 of 2023)
- Quality Inspection Services Inc Japan and 2 Others v Uganda National Bureau of Standards (Consolidated Applications No. 15, 17 and 18 of 2023)
- Rhema Engineering Company Ltd v Arua City (Application No. 13 of 2023)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.