Justice Minister Kahinda Otafire says he warned Uganda National Bureau of Standards against awarding a Japanese company, a monopoly to inspect vehicles imported from Japan and the United Kingdom.
The company, JEVIC, is now the focus of an investigation by the Trade committee of Parliament, which is probing the award of contracts for the pre-export inspection and verification of vehicles.
Otafire told Members of Parliament on the committee this morning that his warning to UNBS was based on a government policy to avoid monopoly and collusion, to prevent sub-standard and contaminated goods from entering the country.
In 2009 UNBS went ahead to award JEVIC an exclusive contract to inspect vehicles from Japan, UK, Singapore and United Arab Emirates.
When Otafire amended the contract to include other players, he says JEVIC agreed to an extension of its contract from 3 to 5 years as compensation.
He says he was therefore surprised that they sued government.
JEVIC was awarded 2.4 billion shillings in arbitration by the court.
Otafire says this award must be contested.
MPs on the committee led by the Deputy Chairperson, Alex Ruhunda, tried to pin the Minister for being culpable in breach of the law, by amending JEVIC’s prevailing contract, hence the court award.
Otafire denied any wrong doing stressing that he acted in the interests of citizens.
