BIG STORY: New Twist in URA Electronic Tax Software Purchase Scandal

The awarding of the electronic tax software supply and installation and operationalization deal by URA to the IUNetworks LLC & Omni Software Ltd joint venture has continued to create problems for the top management at URA. The e-tax2 solution, to cost 80bn, will be operational for the next 10 years and its meant to promote digitization of tax administration processes in Uganda.

One of the biggest concerns, which even PPDA appeals tribunal tried but failed to resolve, relates to the contracted firm’s limited technical capacity and experience. At first in 2025, several firms had bided for the job but several of them pulled out after establishing that the procurement process was deliberately being biased to favor the Omni Software JV in which one of the top officials at URA allegedly has interest as a co-owner.

The other companies included techno brain global FL LLC, Synesis IT, Africa Data Edge Ltd, Yoya Technologies Ltd in JV partnership with Biden Information Technology Beijing Co Ltd and Percent Technology Co Ltd.

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Some of these exited and abandoned the procurement process after getting reports that Tracy Judith Akello, an influential female lawyer at URA and blue-eyed girl to the CG, was allegedly determined to ensure none of them makes it.

Ms Akello, who is related to former finance minister Kasaija through her marriage to a Bunyoro royal, had previously been switched from legal to the domestic taxes department under very controversial circumstances.

Fellow lawyers at legal had become uncomfortable with her over the Authority’s inability to win cases she was involved in. She is well off as her family owns Sinbel supermarkets and she is respected for being able to sway members of the relevant procurement-related committees at URA.

Her clout on tender awarding matters explains why some of the bidders considered it wise to quit the process after establishing she wasn’t prepared to be on their side.

Indeed, during the evaluation committee meetings for the e-tax solution procurement, four of the 12 members objected to the Omni Software JV on grounds of inexperience and limited technical capacity. These risked the wrath of Ms Akello and they indeed found out the hard way when they found themselves targeted for suspension over unsubstantiated bribe solicitation claims.

Those who were victimized for standing firm against the Omni Software JV on grounds of being unfit for the e-tax tender included IT manager Jolly Joe Wasswa, manager Setty Olugo and Ruth Chebet from the procurement department. James Abola, the assistant commissioner in charge of the integrity compliance and ethics unit, was expected to investigate the four and find a way of fixing them.

Instead, his investigations exonerated them because there was no wrongdoing on their part. Abola found there was nothing wrong with the four objecting to the Omni Software JV partners who couldn’t even produce the performance guarantee as a precondition for 15% of the total contract price to be advanced to them.

None of the 26 commercial banks in Uganda was comfortable issuing the guarantee in favor of the Omni Software JV bidder. There was also concern that some top managers at URA wanted the advance payment to be increased from 15% to 30% contrary to what is laid down in the rules and the provisions of the contract.

All this made the four victimized managers to feel vindicated. Yet some bosses at URA were pressurizing the finance department to give the advance payment even in the absence of the mandatory bank guarantee.

The victimized managers were further vindicated when the favored JV contractor, whose Ugandan staff were allocated office space at the URA rented office premises at Pearl as early as January, failed to start any work up to this day. Their JV partners are yet to jet into Uganda the required staff to facilitate the knowledge transfer to ensure project sustainability.

As Ms Kellen Kiconco Mugyende, the senior presidential advisor on tax matters investigates mistreatment of staff at URA by writing to the industrial court to give her all the details of the labor disputes involving URA, there are growing fears that Uganda’s tax administration is going to suffer because of the problems bedeviling e-tax 2 project, whose rolling out is already late and behind schedule by 4 years.

Motivated by Kiconco’s interventions, the victimized staff recently petitioned the URA board demanding to be reinstated on their jobs since no wrongdoing has been established. Board members are also concerned that James Abola was framed and victimized with a suspension simply because he failed to find any wrongdoing to use to justify the chasing away of the four patriotic managers.

The board members are concerned that the four managers’ suspension was extended instead of being lifted after the first one month ended. They are being paid a salary by URA even when they are on suspension and not doing any work for the tax body. All these scandals are combining to show that the current CG and top management at URA are due for termination for a better top leadership to take charge.