Driving permit deal illegal â€" IGG
Mar 25, 2004
Parliament’s finance committee has heard that a contract awarded to a South African firm to produce digital driving permits is illegal.
By Mary Karugaba
Parliament’s finance committee has heard that a contract awarded to a South African firm to produce digital driving permits is illegal.
“The contract is unconstitutional and therefore illegal. Courts cannot enforce a contract which is illegal because it contains acts which are unlawful. Such contracts would be deemed void,†the inspector general of government (IGG) said in a report.
Last year, the Government signed an agreement with FASE Technology Ltd to develop, install and provide computerised driving permits to replace the existing ones.
Under the agreement, FASE would share revenue accruing from issuing permits with Uganda Revenue Authority (URA).
However, another report written by the ministry of finance to the permanent secretary in the works ministry objected saying URA cannot run a joint account with a private company because it contravenes the law.
“It’s not possible for URA to run a joint account with the contractor FASE Technology. This is because URA collections by law go into the Consolidated Fund. Another mechanism has to be employed to ensure that the contractor gets its revenue,†the report reads.
Parliament’s finance committee has heard that a contract awarded to a South African firm to produce digital driving permits is illegal.
“The contract is unconstitutional and therefore illegal. Courts cannot enforce a contract which is illegal because it contains acts which are unlawful. Such contracts would be deemed void,†the inspector general of government (IGG) said in a report.
Last year, the Government signed an agreement with FASE Technology Ltd to develop, install and provide computerised driving permits to replace the existing ones.
Under the agreement, FASE would share revenue accruing from issuing permits with Uganda Revenue Authority (URA).
However, another report written by the ministry of finance to the permanent secretary in the works ministry objected saying URA cannot run a joint account with a private company because it contravenes the law.
“It’s not possible for URA to run a joint account with the contractor FASE Technology. This is because URA collections by law go into the Consolidated Fund. Another mechanism has to be employed to ensure that the contractor gets its revenue,†the report reads.