KAMPALA .
The Ministry of Works and Transport has announced that the suspended mandatory motor vehicle inspection will resume in July .
In June 2017, the then Speaker of Parliament Rebecca Kadaga directed the Parliament’s Committee on Physical Infrastructure to investigate the mandatory inspection and circumstances surrounding the contract award after concerns arose around the impending June 30 ,2017 deadline for vehicle inspection.
Queries were raised that Societe Generale de Surveillance (SGS) , the firm that was contracted to do the work had not met its part of the contract.
Following the investigation into the matter, the legislators on the committee failed to agree on the final decision to be taken, explaining the emergence of the two reports, and while the majority report, warned against cancellation of the contract between government and SGS , saying it would have catastrophic financial consequences for Ugandan taxpayers.
However , government went ahead and cancelled the deal and recommended payment of over Shs 200bn in fines to the aggrieved Swiss contractor.
Speaking to Journalists in Kampala on Tuesday , Junior Transport Minister Mr Fred Byamukama said government has already taken over the seven upcountry automated motor vehicle inspection stations that were previously run by SGS Uganda Ltd .
The stations including one at Nabbingo along the Kampala-Masaka highway , Namanve along the Kampala-Jinja highway , Kawanda along Kampala-Gulu highway and Namulanda along Kampala-Entebbe .
“The inspection exercise was initially halted due to high charges. However, the President directed the ministry to source funds and pay the investor so the government could assume control,” he said.
General vehicle inspection is expected to resume in July, with enforcement beginning in early August. All drivers will be required to carry a valid inspection certificate, the minister said
“Before going to the road, every vehicle will be inspected and don’t be surprised to see many of the old taxis you usually see not returning to the road.
What will happen is that if a vehicle is not found to be fit to be on the road, it will not be given the PSV licence.” He said
Recently , Works and Transport Minister Gen Katumba Wamala said motorists especially in pubic transport should not be surprised when their old vehicles have not returned on the road .
“What will happen is that if a vehicle is not found to be fit to be on the road, it will not be given the PSV licence.,”
What was in the govt- SGS contract :
Clause 7.8.5 of the contract stipulated that if the contract is terminated by either Government or Ministry of Works, for any cause, before the expiry of the 5year term or any extension or renewal of such term, the Ministry of Works shall have to pay SGS 75 percent of the value of total investment.
The same clause also puts a tougher condition for termination where the Ministry is to pay 100 percent of the expected income of the provider from the services, whichever is greater, basing on the cost of demobilization, with the majority report proposing the suspension of the contract for three months in order to give government time to review and renegotiate the MOU.
However, MPs who authored the Minority report described the proposal to suspend the contract for three months as redundant, citing section 12.5 of the contract that provides that any modification to the terms of the agreement may only be made by written agreement between the two parties, and wondered why the negotiation time was capped at 3 months yet it took Parliament four months to investigate the matter.