Construction firm loses bid to block Butebo school project

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The High Court sitting in Mbale has dismissed a case filed against Butebo Local Government over the award of a school construction contract, following claims of irregularities in the procurement process.

In a ruling delivered on July 9, 2025, Justice Farouq Lubega dismissed a suit brought by Rema Uganda Limited, which sought a court order to nullify the contract awarded to Gali Technical Services Limited.

Rema Uganda Limited had alleged that the procurement process was flawed and that the contract was awarded to Gali Technical Services in an irregular manner, despite Rema submitting its own bid.

According to court documents, the district had advertised the construction of a seed secondary school at Kachura, Kabwangasi, under a World Bank-funded school development programme.

Through their lawyer, Disan Bwayo, Rema Uganda Limited argued that the process had not been conducted properly. However, in a written defence, Butebo Local Government denied the allegations and maintained that the procurement process had been carried out lawfully.

Denis Awori, the lawyer representing the local government, raised a preliminary objection, arguing that the case had been filed in the wrong court, which lacked the jurisdiction to hear procurement-related matters. He stated that the case falls under the Public Procurement and Disposal of Public Assets Act, Cap 205 (PPDA).

Awori further argued that procurement complaints must first be handled internally through the mechanisms established under the PPDA Act and only reach the High Court as appeals on points of law arising from decisions of the tribunal.

The court agreed with the defence, ruling that the matter should have been addressed through the internal procedures set out under the PPDA Act.

“It is clearly intended that procurement matters be addressed first through the internal mechanisms established under the PPDA Act and the Regulations thereunder namely; the Accounting Officer, the PPDA Authority and the Tribunal, whose members are specialised to handle such matters expeditiously. It is only when a bidder is dissatisfied with the outcomes of these processes that an appeal may be lodged to the High Court, whose decision in procurement matters is final and conclusive.

This approach helps to prevent case backlogs and avoids rendering provisions inoperative, thereby giving effect to the mischief the statute intended to remedy. In the circumstance, the preliminary objection is sustained. The suit is dismissed with costs,” Justice Lubega ruled.