Syndicated Fraud in Namanve Industrial Park Project: A Deep Dive into Collusion and Procurement Malpractice

The €212 million Namanve Industrial Park Project, a symbol of Uganda’s industrial ambitions, has become mired in allegations of corruption and collusion. Once envisioned as a transformative initiative, the project now exemplifies how powerful interests can manipulate procurement processes at the expense of public trust and resources.

The story begins with a call for Expressions of Interest (EOI) advertised by the Uganda Investment Authority (UIA) on November 9, 2022. The EOI aimed to identify qualified firms for the critical role of Owner’s Engineer (OE), with stringent eligibility criteria reflecting the project’s scale and importance.

Firms were required to demonstrate experience managing at least two projects of similar nature, each valued above $200 million, and a minimum annual turnover of $50 million. These requirements were designed to ensure that only highly capable firms would manage the project.

Yet, by January 2023, these rigorous standards were cast aside. PM Excellence, a small UK-based firm with no relevant experience or financial capacity, submitted an unsolicited proposal to UIA.

The firm, with an annual turnover far below the required $50 million and a portfolio limited to projects worth $15,000–$30,000, had no business being considered for a project of this magnitude. Nevertheless, it was fast-tracked to the forefront of the procurement process.

On January 27, 2023, UIA’s Director General, who also serves as the project’s Accounting Officer, wrote directly to Louis Arinaitwe of the British High Commission (BHC), seeking an endorsement for PM Excellence. This move ignored the EOI process and the vetted list of credible UK firms provided by the BHC in 2019.

These firms had demonstrated expertise in multibillion-dollar projects and were compliant with UK Anti-Bribery and Corruption laws. Despite their qualifications, none of these firms were approached or considered.

By February 17, 2023, the Director General sought the Public Procurement and Disposal of Public Assets Authority’s (PPDA) approval for direct procurement of PM Excellence. Although PPDA granted conditional approval, it required due diligence and a value-for-money assessment before any contract could be finalized.

These conditions were ignored. By March 2, PM Excellence had formed a joint venture with MBW Consulting Ltd, effectively outsourcing its responsibilities. The original justification for choosing PM Excellence—the promise of British expertise—was rendered meaningless.

The joint venture now charges $500,000 per month, much higher fees than those commanded by globally recognized engineering firms with proven expertise. Yet, neither PM Excellence nor MBW Consulting has mobilized the technical staff necessary to deliver the project. Meanwhile, the previous consultant, selected through a transparent process, was abruptly terminated without explanation, further clearing the path for PM Excellence.

The Director General’s actions suggest deliberate favoritism and possible collusion. PM Excellence was handpicked over qualified firms, with the DG relying on endorsements from individuals like Mr. Arinaitwe, who had introduced PM Excellence to UIA in the first place. The bypassing of UIA’s EOI process, coupled with the disregard for PPDA’s conditions, paints a troubling picture of coordinated efforts to manipulate the procurement process.

The financial implications are staggering. Taxpayer funds are being funneled into a consultancy arrangement with no tangible results. The inflated costs of the joint venture have added to Uganda’s national debt, all while oversight bodies like the Inspectorate of Government (IGG) and the State House Anti-Corruption Unit remain silent.

Key questions linger. Why were the rigorous eligibility criteria established in the EOI ignored? Why was due diligence not conducted on PM Excellence? Who benefits from this arrangement, and why have credible firms been excluded? The silence of key officials, including Hon. Evelyn Anite, the usually vocal Minister of Investment, only deepens the mystery.

The Namanve Industrial Park Project was intended to be a milestone in Uganda’s industrial development. Instead, it has become a stark reminder of how systemic corruption can undermine national progress. To restore public trust and recover public funds, the government must act decisively. Payments to the joint venture should be frozen, and a thorough investigation must hold all implicated parties accountable.

The evidence is clear: this is not just a case of mismanagement but a betrayal of public trust. The Namanve Industrial Park Project now stands as a warning of what can happen when governance fails. Uganda’s leaders must act urgently to dismantle this web of corruption and reclaim the project’s potential for the nation’s future.