Uganda: Firm Sues NSSF Over Breach of Contract
Lominda Afedraru
18 November 2009
The National Social Security Fund has been sued over a breach of contract which could make the fund pay up to Shs2.4 billion in costs.
Comptel Integrators Africa Limited, an information technology company, accuses NSSF of illegally starting a fresh procurement process for consultancy services for the maintenance of the fund's information technology systems.
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Comptel wants the Commercial Division of the High Court to overturn NSSF's decision to invite bids for consultancy services since it would breach an agreement it has with NSSF.
The two parties appeared on Monday before Justice Godfrey Kiryabwire and the case was adjourned to February 1, 2010.
Comptel claims it won the contract in 2007 to provide consultancy services for the maintenance of NSSF's information technology systems.
According to the company, between September 2008 and March 2009 it carried out Technical support work at a fee of Shs2.4b which was acknowledged by NSSF. The company says NSSF later asked it to apply for renewal of its license to perform the same work, which it did at a cost of Shs1.9 billion.
The firm says in December last year, NSSF approved its recommendations for the service and signed a maintenance agreement for the maintenance of NSSF's integrated management information system which was to be put in place with a service provider in accordance with the Public Procurement and Disposal of Public Assets Authority regulations.
The company argues that the agreement did not direct NSSF to subject the maintenance service to competition under open bidding. However, NSSF has decided to advertise the procurement of service through a competitive bidding process.
Comptel argues that NSSF's should halt fresh invitation of bids and pay the debt demanded and costs. NSSF has denied the claim, saying the company's contract ended in June 2008 and there was no other contract signed with it.
According to NSSF, the extra work claimed to have been performed by the company was a continuation of the original contractual work which was not completed within the prescribed time.
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