Uganda Association of Consulting Engineers Limited v Prime Minister of the Republic of Uganda and Others (Miscellaneous Cause No. 182 of 2024)
Observed later treatment
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Holding
The High Court dismissed the application for judicial review challenging PPDA Guidelines No. 3 of 2024, which require consulting engineers to provide both professional indemnity insurance and performance guarantees. The court held that Section 65 of the PPDA Act applies to procuring entities, not to PPDA as regulator; that PPDA had statutory authority under sections 8 and 134 to issue guidelines without mandatory consultation; that FIDIC guidelines are persuasive but not binding; and that requiring both forms of security is not irrational as they serve distinct purposes.
Outcome
Application for judicial review dismissed with costs to the respondents
Facts
The Uganda Association of Consulting Engineers Limited challenged PPDA Guidelines No. 3 of 2024 and directives issued by the Prime Minister in June 2024 requiring consulting engineers on government projects to provide performance guarantees in addition to professional indemnity insurance. The applicant contended that the guidelines were enacted without consultation contrary to Section 65 of the PPDA Act, that they violated international standards set by FIDIC, and that the dual requirement made business unnecessarily costly. The Prime Minister's directives followed site visits to construction projects in Kampala. PPDA opposed the application, arguing it had statutory authority to issue guidelines under sections 8 and 134 of the PPDA Act without mandatory consultation, and that the requirement for both forms of security was intended to protect government from different risks.
Issues
- Whether the application is amenable to judicial review.
- Whether the PPDA Guidelines No. 3 of 2024 were enacted illegally contrary to Section 65 of the Public Procurement and Disposal of Public Assets Act.
- Whether the PPDA acted with procedural impropriety by failing to consult stakeholders before issuing Guidelines No. 3 of 2024.
- Whether the requirement for both professional indemnity insurance and performance guarantees is irrational.
Orders
- Application dismissed.
- Costs awarded to the respondents.
Rules and key headnotes
Legislation cited (13)
- Constitution of Uganda Article 28
- Constitution of Uganda Article 42
- Constitution of Uganda Article 44
- Judicature Act Cap. 16 s.36
- Civil Procedure Act s.98
- Judicature (Judicial Review) Rules SI No.11 of 2009 Rule 3
- Judicature (Judicial Review) Rules SI No.11 of 2009 Rule 4
- Judicature (Judicial Review) Rules SI No.11 of 2009 Rule 6
- Public Procurement and Disposal of Public Assets Act Cap. 205 s.2
- Public Procurement and Disposal of Public Assets Act Cap. 205 s.6
- Public Procurement and Disposal of Public Assets Act Cap. 205 s.8
- Public Procurement and Disposal of Public Assets Act Cap. 205 s.65
- Public Procurement and Disposal of Public Assets Act Cap. 205 s.134
Cases cited (5)
- Byaruhanga John Patrick v Commissioner for Land Registration (Miscellaneous Cause No. 235 of 2024)
- Chief Constable of North Wales Police v Heavens [1982] 3 All ER 108
- Real Task Agencies Limited v Uganda Revenue Authority and 2 Others (Miscellaneous Cause No. 069 of 2023)
- Ignatius Loyola Malungu v Inspector General of Government (Miscellaneous Cause No. 059 of 2016)
- Silver Kayondo v Bank of Uganda (Miscellaneous Cause No. 109 of 2022)
Cases citing this judgment (2)
How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.
Full judgment
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