Allegations Of Influence Peddling And Bidder Favoritism As Bank Of Uganda Cancels Multi-Billion National Payments Switch Procurement Post-Award If proven true, the influence peddling allegations surrounding the tender cancellation of the National Payments Switch raise serious concerns about procurement integrity, transparency, fair competition and value for money. With the resultant delays, taxpayers risk losing twice—first through questionable procurement decisions and value for money and secondly by missing out on the system’s economic benefits, such as reduced transaction costs and efficiency resulting out of interoperability.

The Bank of Uganda (BoU) has come under intense scrutiny following its abrupt cancellation of the National Payments Switch (BNPS) procurement process. This move has raised significant concerns over transparency, security, and alleged undue influence. The central bank annulled the deal just days after awarding the contract to a Moroccan firm, Paylogic S.A., citing security concerns that had supposedly been overlooked earlier.  However, industry insiders and procurement experts suggest that deeper issues of favoritism and influence peddling may be at play.   The international bidding process, initiated in July 2023 under reference number BOU/NCONS/22-23/00378/C, attracted twenty companies vying for the…