PROCUREMENT AUTHORITY CANCELS VOTER ID CONTRACT

C O N F I D E N T I A L KAMPALA 001349

SIPDIS

E.O. 12958: DECL: 11/23/2019
TAGS: PGOV ECON EINV KCOR KDEM UG
SUBJECT: PROCUREMENT AUTHORITY CANCELS VOTER ID CONTRACT
TENDER

REF: A. KAMPALA 1278

B. KAMPALA 01323

Classified By: Econ Officer Don Cordell for reasons
1.4 (b) and (d).


1. (C) Summary: Uganda,s Public Procurement and Disposal of
Public Assets Authority (PPDA) canceled a tender issued by
the Electoral Commission for a voter registration and
biometric ID system on November 6 due to irregularities in
the bidding process. The Electoral Commission had suspended
the tender in October after a Bangladeshi company NOT
short-listed for the USD 15 million contract first complained
and then brought key Electoral Commission and PPDA personnel
to Bangladesh for consultations (ref. A). The PPDA ordered
the Electoral Commission to re-issue the tender using an
accelerated time frame. The Commission's opaque and
irregular management of the contracting process inspires
little confidence for the transparent management of elections
in February 2011. End Summary.

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Procurement Authority Declares Do-Over
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2. (C) On November 6, the PPDA concluded its investigation
into the Electoral Commission's USD 15 million voter
registration and biometric ID contract. The PPDA halted the
procurement process on October 1 based on information
provided by a unnamed "whistle blower". The PPDA's inquiry
revealed a number of procurement problems including unclear
selection criteria and the use of an incorrect solicitation
document. The PPDA also indentified post-evaluation changes
in the ratings of two of the four short-listed companies
which put these companies over the contract's selection
threshold. The Ugandan partner of the U.S. firm L-1 is one
of the companies that apparently benefited from
post-evaluation score changes.


3. (SBU) The PPDA report instructs the Electoral Commission
to re-run the tender by allowing all of the 15 firms that bid
on the original contract to resubmit their bids in a closed,
accelerated bid process. The Electoral Commission and PPDA
will then correct any subsequent irregularities and devise a
new short-list.

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Uganda's Voter Registry: Made in Bangladesh?
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4. (C) On November 20, Susan Katono, an official with L-1's
local partner Balton Uganda Ltd., identified the Bangladeshi
company "Smartmatic" as both the whistle-blower and the
company that flew Electoral Commission and PPDA officials to
a "retreat" in Bangladesh in late October. Katono told
EconOff that the principal author of the PPDA report,
Cornelia K. Sabiiti, was one of the PPDA officials who
traveled to Bangladesh along with the Electoral Commission's
Chairman Badru Kiggundu and Secretary Sam Rwakoojo.
According to Katono, Sabiiti and Rwakoojo are related to
Foreign Minister Sam Kutesa, who has financial interests in
Smartmatic. NOTE: Katono is a niece of National Resistance
Movement (NRM) Secretary General and Security Minister Amama
Mbabazi, who also appears to have a personal stake in both
the ID contract and the activities of the Electoral
Commission (ref. B). END NOTE.

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Comment: Misplaced Priorities
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5. (C) A revised and transparent voter registry is crucial to
the success of the 2011 presidential elections. The
Electoral Commission's opaque handling of the registry, and
the contract supposedly intended to improve it, inspire
little confidence. The USD 15 million ID contract comprises
more than 100 percent of the Electoral Commission's available
funding for 2010, is unlikely to produce substantive
improvements to the registry, and precludes the Commission
from undertaking any other important election related
activities. If implemented as designed, the contract would
likely trigger post-election legal challenges based on the
Commission's decision to limit the ID project to 17
municipalities which tend to be opposition strongholds.
Electoral Commission, PPDA, and senior government officials'
interest in biometric voter IDs seems to be driven by
opportunities for graft rather than a desire to clean up
Uganda's voter registry.
LANIER