Home News SADA was defrauded in $9.5m tricycle project – NDA reveals

SADA was defrauded in $9.5m tricycle project – NDA reveals

The Northern Development Authority (NDA) has alleged that some marketing officers of Unik Savannah Limited, a private company, that was engaged to supply tricycles and motorbikes to some residents within the SADA zone perpetrated fraud on the then Savanna Accelerated Development Authority under a Public Private Partnership arrangement.

SADA entered into a Private Public Partnership (PPP) with UNIK Savannah Limited for the procurement of 5,000 tricycles under the tricycle project at a cost of $9,500,000 in 2015. Out of the 5,000 tricycles that were imported, 3,000 were assembled, 2,239 were released and 732 left under harsh weather conditions with about 2,000 of the unassembled tricycles still in stock.

Following the detection of some irregularities around the operations of the company and the business arrangement, SADA Board referred the matter to the Economic and Organized Crimes Office (EOCO) for investigations.

At a press conference on the matter addressed by the Acting Chief Executive Officer of  the now Northern Development Authority (NDA) Dr Abdel-Majeed Haroun, SADA is blamed for poor management of the agreement saying “SADA failed to anticipate the storage facility needs for the consignment. Thus no proper facility was provided for the assembled tricycles leaving them under the mercy of the weather for years and resulting in a significant depreciation of up to 60% according to the latest valuation by the State Transport Company (STC) Limited. It was realized that the organizational structure of UNIK Savannah was deficient paving way for fraud by some of the marketing staff”.

According to him, NDA upon assumption of office of its Board constituted an adhoc committee to look into the matter and to identify and determine quantities sold/distributed to beneficiaries and state of indebtedness of beneficiaries.

The NDA further disclosed that it would embark on an open direct sale of the tricycles to the public based on the revalued prices by State Transport Company (STC) throughout the NDA operational zone.