The Parliamentary Committee on Statutory Authorities and State Enterprises (COSASE) has probed the Rural Electrification Agency (REA) over its dealings with Ferdsult Uganda Limited.
The Committee tasked the Deputy Executive Director of REA, Godfrey Werikhe to explain their continued dealings with Ferdsult, an engineering, procurement and construction firm, yet it owes them money.
In the nine years that Ferdsult has worked with REA, Ferdsult has paid only 60 million shillings of the total three billion, which they owe REA.
“I wonder how a company such as yourself can continue to work with a firm that has not cleared its debts to you for over nine years,” Abdu Katuntu the Committee Chairperson queried.
Katuntu wondered how Ferdsult seemed unable to settle its outstanding payments, though it was still running normally, an action he found suspicious.
Bonny Kiiza, the Director of Finance for Ferdsult said that they were unable to pay their debts but would do so immediately.
“We have had a good relationship with REA. We cannot risk spoiling it. We shall soon clear our debts,” Kiiza said.
However Bukoto East MP Florence Namayanja said that Ferdsult was exploiting REA and taking advantage of its weaknesses.
Koboko Woman MP, Margaret Baba Diri said that the two companies appear to have a complicated relationship which they both need to explain.
“I do not understand how you as REA can work with a company that has not paid you for over nine years. How is REA benefiting? It seems the two have dealings that we do not know about,” Baba Diri said.
While Ferdsult maintains that they will clear their debts, the Committee Chairperson ordered REA not to give the firm any more business until all outstanding payments are cleared.