The Minister for Security, Maj Gen Jim Muhwezi has assured Ugandans that there is no need to worry about the Russian company that was given the deal to install digital tracking devices in vehicles and motorcycles.
The Ugandan government last week signed a 10-year agreement with Joint Stock Company Global Security, a Russian firm that will see the latter install tracking devices in all public and private vehicles and motorcycles in the country.
However, the deal has been questioned after it emerged that the company is facing a bankruptcy case and many other cases related to debts in Russian courts.
Speaking about the matter for the first time, the Security Minister said there is nothing to worry about since everything has been catered for.
“The Ministry of Security is aware of allegations regarding the financial solvency of the contractor in the recently signed Global Security Contract. As was earlier clarified by the Attorney General, this project has long been in the pipeline and its details agreed upon prior,” Muhwezi tweeted.
“Nevertheless I want to reassure the public that the terms of the contract provide the government with clear rights and protections should the alleged circumstances materialise.”
According to documents, Joint Stock Company Global Security was dragged to court by LLC “Rus Prom-Technologies”, another Russian company with requests to have the former declared bankrupt
Also in another case filed in 2019, Rus Prom Technologies sued Global Security for failure to pay 16.6 million rubles (Russia currency), a case that the former won and applied to have Global Security declared bankrupt.
There are several other cases in which Joint Stock Company Global Security was dragged to court over debts with other Russian companies.
Earlier this week, the Attorney General told Uganda Radio Network that his office was involved in signing the deal with the Russian company, adding that there is nothing to worry about.
“Yes, the contract was brought to my office, we approved it and we believe there is no risk, Uganda is not exposed to anything at all. The contract was approved by my office taking into consideration all the laws of this country and we are certain that we don’t have any order of bankruptcy issued against the company, Attorney General, Kiryowa Kiwanuka told URN .