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In April 2006, the Ugandan newspaper the Daily Monitor reported that Uganda's Inspector General of Government (IGG) had started an investigation into the bidding process for the contract to supply a thermal power plant by the Electricity Regulatory Authority (ERA).

Dr Frank Sebbowa, the Chief Executive Officer of ERA, and his team are reported to have been accused of giving Jacobsen AS, a Norwegian company, an unfair advantage over Electro-maxx (an alliance comprising local Ugandan businessmen and Hyundai Heavy Industries of Korea), and American Power Initiative (API) of the USA.

IGG Justice Faith Mwondha wrote to all concerned saying that she had grounds to investigate the decision by the Electricity Regulatory Authority (ERA) to award the contract to the Norwegian firm, Jacobsen AS.

She later revealed that, contrary to previous Press reports, no formal award had been made to Jacobsen.

Dr Sebbowa stated that "there is nothing irregular about the deal," and that Jacobsen was the most experienced of the bidders.

Dr William Kalema wrote to the IGG on behalf of Electro-maxx, alleging that the ERA had manipulated the bid figures and used inadequate technical evaluation to arrive at its decision. The letter was copied to President Yoweri Museveni, as well as the Ministry of Finance, the World Bank and the Public Procurement and Disposal of Assets Authority.

According to the Daily Monitor Marcos Bitew, a Director of the third bidder, API, had also written a letter of complain to Dr Sebbowa.