A contract signed between Societe General Desurveillance (SGS), a Swiss based company and the government of Uganda faces termination going by the pressure from various stakeholders.
The latest is a group of car dealers who have asked Parliament to terminate the contract with immediate effect if it is established the contract award flaunted Public Procurement procedures.
Through their umbrella body, Uganda Motor Industry Association (UMIA), the group that comprised of Spear Motors proprietor Gordon Wavamuno, Victoria Motors director Sam Kibuka among others and their Association lawyer Chris Bwanika asked MPs to take tough actions against SGS.
The group had appeared before the Parliamentary Committee of Physical Infrastructure on Wednesday that is investigating circumstances under which SGS got the contract.
The group noted that they felt excluded after the Swiss Company was given the contract, without any competitive bidding, sidelining other service providers.
They argued that this undermined Government’s promise to give preferential treatment to local companies before considering foreign firms.
They added that their respective companies had the capacity to create vehicle inspection service stations since they have more vehicle inspection stations than SGS in the whole country to reach out to the general public without subjecting Ugandans to inconveniences they are facing under SGS.
Car dealers told the Committee that SGS has established a few vehicle inspection service stations in Kawanda and Nabbingo and although there are plans to construct more seven stations, these won’t serve Ugandans well across the country.
They also challenged the way the vehicle inspection exercise is being managed, with criticism being pointed out at mandatory vehicle inspection of cars that are more than one year old, in total disregard of manufacturer’s warranties which raise contractual issues when the SGS interferes with such vehicles.
signed the controversial contract with government in March 2015 to carry out routine inspection of vehicles with the aim of reducing road accidents.
Following a number of complaints about the works of SGS and the contract itself, Parliament recently resolved to investigate the matter.
