How commission agents have used the media and turned the procurement process in Uganda into a circus
It is now 
highly probable that the US$ 2 billion tendering process for the 600MW 
hydro electricity dam at Karuma will be declared a `mis-procurement’. If
 this happens, I can bet that it will take the next seven years of 
wrangling before another contractor is named to build Karuma.
To a 
person visiting Uganda for the first time and following these media 
reports, our country seems to have a vigilant government that is out 
there to guard the public good and ensure that our citizens get a good 
deal. For a journalist like me who has covered public tenders for over 
15 years, these stories are most likely make-believe tales that 
demonstrate attempts to corrupt the tendering process. The first cause 
of suspicion is the fact that newspapers that shout loudest about how 
Museveni and the police aid and abate corruption in our country are the 
ones – clearly inadvertently – reporting his heroic efforts and those of
 the police to strangle this monster of corruption in the dam deal.
Media 
organisations in Uganda lack institutional memory. Our newspaper 
industry does not retain staff for many years. So the reporters and 
editors who reported on the last procurement deal have moved on. 
Consequently, our journalists and editors have not yet developed an 
“eagle eye’s” view of our political system. So they tend to cover every 
procurement deal as an event rather than as part of a wider pattern.
Often, the
 companies that bid for big tenders in Uganda are international. They 
come believing, rightly or wrongly, that to get a deal, you need 
political influence. But international firms lack social ties with our 
political and bureaucratic class to navigate the webs of wheeler-dealing
 that gets one a contract. So they hire local handlers to do the work 
for them. These local intermediaries earn a commission upon the 
international firm getting a contract. And they are people who have (or 
are perceived to have) close connections with the powers that be.
Because of
 the interconnectedness of the Ugandan political system, anyone of the 
commission agents knows who his opposite numbers are. Perhaps they get 
good information on the bribing that is taking place. But some of the 
time, actually most of the time, it is gossip, slander, idle talk and 
rumours. If one company wins the tender, the commission agent of the 
rival company, whose pay depends on his company getting the deal, will 
leverage the institutions of accountability like the IGG, PPDA, media, 
Parliament, State House or intelligence services to claim that the rival
 bribed their way to success. He will become the anonymous whistle 
blower or even convince the company he is representing to lodge an 
official complaint.
Initially 
the institutions that ensure accountability in our country may intervene
 with the genuine motive of resolving the scandal. The problem, however,
 is that immediately they do so, the commission agents of the different 
competing firms join the fray to influence the outcome. Each now will 
seek to influence MPs, PPDA, the IGG investigators or the media to get 
to a favourable rating or coverage. In pursuit of this objective they 
will use facts, lies, bribes and all sorts of tricks to get their way.
Their 
primary objective will be to discredit the initial award in order to 
cause a mis-procurement. For then, their company gets another chance at 
the deal, and them, another probability at a commission. The real 
corruption begins when they are trying to torpedo an award. For then 
they can ask the company they are representing for money to buy off 
investigators from the office of the IGG, PPDA, police and intelligence 
officers, MPs and the media. Often, they may not even pay any bribes – 
for example to journalists – since we are always hungry for the next 
scandal.
It is in 
this context that if you understand the political economy of procurement
 in Uganda, you realise that the very efforts that are seemingly aimed 
at fighting graft are the very instruments thieves and crooks use to 
promote the cause of corruption. There are always hidden motives beneath
 the manifest ones that shape the struggle to cause a mis-procurement. 
The bidding firms are promised by their commission agents a favourable 
outcome if the initial allocation is cancelled. So they play along.
I was a 
young journalist when four international companies competed to win a 
tender to offer pre-shipment inspection services. The battle between 
Cotecna (Switzerland), Bivac (France), ITS (Britain) and SGS (France) 
was protracted, bloody and expensive. It paralysed the entire 
government, compromised the institutional integrity of the state, caused
 a burglary in the ministry of Finance and ended in no deal after four 
years of manoeuvres and counter manoeuvres. I covered the attempt to 
award a tender to issue a National ID and the struggle between Contec 
Global (from Britain), Information Technologies (from South Africa) and 
Super Com (from Israel) was fought in parliament, State House and the 
media and ended with no national ID.
The list 
of these contests is endless. The lesson, however, is that Ugandan 
editors and reporters have not learnt the lesson from these contests 
i.e. that we are often used – perhaps inadvertently – to promote causes 
we know little about. In the process, we help, not only in undermining 
the ability of the state to perform its functions, but actually to 
accentuate corruption.
If the 
government declares Karuma a mis-procurement, it will be another seven 
years before another contractor is given a contract. During this time, 
the costs of the dam as a result of corruption and inflation will 
escalate. A seeming effort to fight corruption is actually the fuel that
 propels this monster in our country.

 
 
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