AG to examine impact of terminating SGS contract

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The Attorney General William Byaruhanga is set to examine the impact of terminating a contract signed between the Ministry of Works and Vehicle inspection contractor, Societe Generale De Surveillance (SGS).

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The $ 125 million contract signed in March 2015 mandates SGS to carry out a routine inspection of vehicles with the aim of ensuring vehicles in poor mechanical condition are taken off the road.

The exercise is intended to ensure vehicle roadworthiness and reduce road carnage.

But the contract was queried when it emerged that it requires only 10 percent concessional fees paid to the government while SGS earns up to 90 percent of the inspection fees to enable it to recoup its investment.

The physical infrastructure committee of Parliament has since recommended that the contract is suspended for three months to allow a review and renegotiation of the contract between SGS and the work ministry.

They argued that the running contract is marred by fraud and unethical conduct.

Nakate Lillian Ssegujja, the chairperson of the physical infrastructure committee of Parliament said the SGS contract was affected by a breach of ethics, a breach in regard to commencement dates of the service, inadequate national coverage, and non-adherence to the timelines for payment of concession fees, among others defaults.

But nine members of the same committee tabled a minority report calling for the termination of the services of SGS. West Budama North MP Richard Othieno Okoth said the contract should be terminated on criminal and ethical grounds.

He added that the role of vehicle inspection should revert to Police.

The demand has since been supported by majority members of parliament. Aruu South MP Samuel Odonga Otto says Government cannot leave the inspection of vehicles to private companies whose sole purpose is maximizing profit.

Oyam District Woman Representative Alum Santa says that although the main goal was to reduce accidents, there is no improvement on the roads since the launch of the inspection by SGS. she adds that government officials need to be probed for conniving with SGS to reap Ugandans off.

But Attorney General William Byaruhanga said priority must be in the best interest of the country.

He added that the main issue will be to identify the particular shortcomings by SGS and clear doubts on whether the contract was approved through the appropriate channels.

Byaruhanga said that a member of the solicitors general's office cleared the contract and that would on the face of it be sufficient to make the contract valid.