For executing shoddy construction works on the Bank of Uganda (BoU) Currency Centre in Kabale, Kigezi sub-region, Pearl Construction Company is likely to be blacklisted from taking on any other construction work for government if recommendations of Parliament are implemented.
This comes after Parliament approved a report of the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) on the audited accounts of Bank of Uganda in the Financial Year 2014/2015.
COSASE led by Kawempe South MP Mubarak Munyagwa found that the Central bank made a loss of UGX12 billion to procure Roko Construction Company to renovate the work on the currency centre which had been shoddily constructed by Pearl Construction Company.
MPs noted that there was professional negligence by Pearl Contractors when it failed to provide for the water flows from the hill near the structure and there was no supervision by the BoU engineering team.
After the intervention of Roko Construction, the Committee reported that the currency centre premises have since been well secured with a new retention wall.
“The Committee however noted that this cost would have been avoided if there was sufficient supervision from the Bank to provide for running water by Pearl Engineering. It was further noted that the Bank could have procured better premises for the site to avoid such high costs” reads part of the report.
It added that; “It was further noted that the Bank could have procured a better premises for the site to avoid such high costs. The Bank had a secure currency center in use in Kabale which would have been maintained”
Phase 1 included the construction of the currency centre building itself but in execution of works, the contractor’s heavy machinery weakened the rock in the vicinity hence the hill started crumbling threatening the whole new structure.
Beyond the Balance Sheet: How Uganda's Top CFOs Are Forging Legacy Through Purpose, People, and Unwavering IntegrityBecause of this, the COSASE recommended that BoU should recover the UGX12 billion from Pearl Construction Company after another contractor was procured to complete the work that had been shoddily done.
“The BoU officials who did not supervise the work and left it to outsiders should also be disciplined accordingly. Pearl Contractors should be blacklisted for any construction work with BoU and other Government agencies after consultation with PPDA (Public Procurement and Disposal of Public Assets Authority)” the report adds.
Parliament also faulted BoU for excessive spending by raising a tower in the form of new premises that is currently under utilised instead of refurbishing the old currency centre that was already in use.
Efforts by this website to get a comment from Pearl Construction Company whose future business is likely to be hampered if the government implements the COSASE report fully were futile. Our request for information through the email addresses available on the company website was not answered to by press time.
This is the second COSASE report to fault BoU since the start of the 10th Parliament with the most damning being the one presented by Bugweri County MP Abdu Katuntu in February 2019.
The Katuntu probe was about the illegal closure of seven commercial banks including Crane Bank Limited which was sold to DFCU at the time it was in receivership.
