Rukutana Defends SGS Contract, Says Fraud Allegations Unproven

The Deputy Attorney General, Mwesigwa Rukutana has insisted that the contract for mandatory motor vehicle inspection is legal and thus rejected the recommendation that the SGS contract be terminated despite recommendations by majority of the Members of Parliament.

Rukutana told parliament on Wednesday that the contract which was drafted and signed by the Ministry of Works on behalf of government can not be terminated because there is no evidence to justify fraud on the side of SGS as alleged.

The contract has since drawn controversy and was subjected to an inquiry by the Parliamentary Committee on Physical Infrastructure last year to probe allegations that it was illegally awarded to Swiss inspection, verification, testing and certification services giant, SGS. Other allegations included exorbitant inspection fees charged from vehicle owners.

In its main report, the Committee noted that the Attorney General had warned that terminating the contract will attract huge costs of compensation while the minority report drafted by West Budama North MP Richard Othieno argued for the termination of the contract due to illegalities committed.

The report as well faulted Engineer Denis Sabiiti who was then a Commissioner in the Ministry of Works for causing financial loss to the government.

Sabiiti who is also Rubanda West MP is accused of having used his former office in the Ministry of Works and Transport to steer the lucrative vehicle inspection contract to SGS which later hired him as a consultant for the same project.

The Committee report further called for investigations into alleged tax evasion and involvement in fraudulent activities by the company.

However, on Wednesday, Deputy Attorney General Mwesigwa Rukutana told Parliament that there was nothing in the agreement that breached the laws of Uganda at the time it was given to the Attorney General for perusal and certification.

“Whether the allegation is true or not, we did not find any justification to impute fraud on the part of SGS for their alleged employment,” Rukutana said.

“the minority reports states that the contract is void for having been not drawn by the Attorney General, however, the contract was subjected to approval by the Attorney General,” he added.

The debate continues tomorrow Thursday before Parliament makes a final decision on the matter.