Why gov’t took over vehicle inspection stations from SGS
The controversy surrounding the project began when Parliament unearthed corruption scandals, forcing SGS to terminate the contract.
The Ministry of Works and Transport (MoWT) in Uganda has officially taken over seven vehicle inspection stations from M/S SGS Company, following a tumultuous contract termination in 2020.
The handover comes after the government agreed to compensate SGS with a staggering Shs 109.9 billion for their total investment.
The controversy surrounding the project began when Parliament unearthed corruption scandals, forcing SGS to terminate the contract. Despite the challenges, the government has vowed to utilize the inspection stations to improve road safety and protect the environment.
“These stations will be used for mandatory motor vehicle inspection and as fitment centers for Digital Registration Plates under the Intelligent Transport Management System (ITMS) Project,” said the Works Ministry.
“This will in turn improve road safety and protect the environment through the mandatory inspection of all vehicles in the country for roadworthiness and environmental compliance.”
The Permanent Secretary of the Ministry of Works and Transport, Waiswa Bageya, revealed that SGS was compensated for the installed vehicle inspection equipment, which was never put to use.
Bageya explained that once SGS is fully compensated, the government will own the installed vehicle inspection centers and enforce mandatory tests for vehicle conditions to reduce road crashes.
The takeover of the inspection stations marks a new chapter in Uganda’s efforts to improve road safety and reduce corruption in public procurement. However, the controversy surrounding the project serves as a reminder of the challenges that remain in ensuring transparency and accountability in government contracts.
