The Public Procurement and Disposal of Public Assets Authority (PPDA) has suspended three companies from participating in public procurement and disposal proceedings for violating the ethical code of conduct for providers.
The sanctions are contained in Circular No. 3 of 2026, issued on June 23, following a resolution by the PPDA Board of Directors during its meeting on June 18.
According to the circular signed by PPDA Executive Director Benson Turamye, the affected firms are Okavango Logistics Limited, Dita Limited and Uptown Incorporation Limited.
“In accordance with Section 128(a) of the PPDA Act, Cap 205, the Board of Directors of the Authority at its meeting held on 18th June 2026 suspended the following providers for breach of the ethical code of conduct for providers,” the circular states.
Okavango Logistics Limited was suspended for one year after PPDA found that it had substantially failed to fulfil its contractual obligations. The authority said the company did not supply materials required for the rehabilitation of two passenger coaches at Nalukolongo Workshop under a contract with Uganda Railways Corporation.
Dita Limited received the stiffest penalty, a three-year suspension from all public procurement activities. PPDA said the company abandoned works it had been contracted to execute for Otuke District Local Government, amounting to a substantial failure to perform contractual obligations.
Uptown Incorporation Limited was suspended for two years for allegedly submitting forged documentation during a procurement process. According to PPDA, the company presented an unauthentic supplier or distributor authorisation while bidding for a contract with the Uganda Revenue Authority, an act the regulator described as “uttering a false document.”
PPDA warned accounting officers in central and local government entities that the sanctions extend beyond the named companies and may also apply to successor entities closely linked to the suspended firms.
The authority emphasised that the companies are barred from receiving new contracts, obtaining solicitation documents or engaging in procurement-related transactions during their suspension periods. However, the restrictions do not affect obligations arising from contracts awarded before the suspensions took effect.
“The above suspension applies to any successor in interest, which includes any entity that is substantially similar to a suspended entity or which employs or is associated with any partner, member, officer, director, responsible managing officer or responsible managing employee of a suspended business entity,” the circular states.
PPDA noted that suspension does not absolve the affected firms of their responsibilities under existing contracts and that they may seek reinstatement once their suspension periods expire.
The authority said details of suspended providers remain publicly available on its website and urged all procuring and disposing entities to strictly observe the restrictions.
PPDA reiterated that suspension is an important legal mechanism for safeguarding integrity in public procurement, promoting accountability and protecting government contracts from fraud, misconduct and poor performance.
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