PPDA blacklists three firms over contract breaches, fake documents

Kampala — The Public Procurement and Disposal of Public Assets Authority (PPDA) has suspended three companies from participating in government procurement after finding them culpable of contract abandonment, failure to perform contractual obligations and submitting false documents during bidding.

The sanctions, announced in PPDA Circular No. 3 of 2026 issued on June 23, follow a decision by the Authority’s Board of Directors made at its June 18 meeting under Section 128(a) of the PPDA Act.

The affected firms are Okavango Logistics Limited, Dita Limited and Uptown Incorporation Limited.

Dita Limited received the longest suspension of three years after PPDA found that it had abandoned works under a contract awarded by Otuke District Local Government, amounting to a substantial failure to perform its contractual obligations.

Okavango Logistics Limited was suspended for one year after failing to supply materials required for the rehabilitation of two passenger coaches at Uganda Railways Corporation’s Nalukolongo Workshop.

Meanwhile, Uptown Incorporation Limited was barred from government procurement for two years after submitting what PPDA described as a false supplier or distributor authorisation document while bidding for a Uganda Revenue Authority contract.

The regulator said the company’s conduct breached the Code of Ethical Conduct governing bidders and providers in public procurement.

Under the sanctions, all procuring and disposing entities have been directed not to award contracts to the three companies during their suspension periods. They are also prohibited from selling bidding documents to the firms, inviting them to participate in procurement processes or engaging with them in any government procurement activity.

However, PPDA clarified that contracts signed before the suspensions took effect remain legally binding and the companies must continue fulfilling their existing contractual obligations.

The Authority also warned that the sanctions extend beyond the named firms.

Under Regulation 12(5) of the PPDA Regulations, the suspensions apply to successor companies and businesses that are substantially similar to the blacklisted entities, including those linked through common directors, officers, partners or responsible managers.

PPDA said the measure is intended to prevent sanctioned companies from circumventing the bans by operating under different corporate identities.

The three companies will only be eligible to apply for removal from the list of suspended providers after serving their respective suspension periods, in accordance with the PPDA Regulations.

The latest enforcement action underscores the regulator’s efforts to strengthen integrity, accountability and value for money in public procurement, which accounts for a significant share of government expenditure each year.