Sh200m Multiplex speed governors not yet bought
MULTIPLEX Limited has dead stock of speed governors worth sh200m due to the Government’s failure to make motorists buy them. Eldard Kansiime, the project manager of Multiplex, said they were the authorised dealers and fitters of speed governors. <br>
By Samuel Balagadde
MULTIPLEX Limited has dead stock of speed governors worth sh200m due to the Government’s failure to make motorists buy them. Eldard Kansiime, the project manager of Multiplex, said they were the authorised dealers and fitters of speed governors.
He said they were forced to stock a minimum of 2,000 units or else close business after being scrutinised by the works ministry.
“Speed governors are not like other products that can be diverted to other uses. We have lost contacts and a relationship with our suppliers in India who gave us a warranty of one year. It is coming to two years since we went into a partnership,†Kansiime said.
“Our speed governor project collapsed. Employees who were had trained to carry out this exercise were laid off after spending too much money on them.â€
“We secured bank loans with high interest rates to get into this business. We have not officially heard from the Government about this dilemma that has left us in a financial crisis.â€
Companies that were licensed to deal in speed governors include: Body Dynamics, Eureka Safety Systems, Spear Motors and Advance Solutions. Only those that are affiliated to car importing are the ones that are still operating as they fit vehicles with speed governors and the cost is directly shifted to the buyers.
According to the Traffic and Road Safety Act, all passenger vehicles with a capacity of seven passengers and above and goods vehicles of net weight 3.5 tonnes and above are supposed to be fitted with the speed governors.
“We have clients who bought these speed governors but have never brought their vehicles for fitting.â€
MULTIPLEX Limited has dead stock of speed governors worth sh200m due to the Government’s failure to make motorists buy them. Eldard Kansiime, the project manager of Multiplex, said they were the authorised dealers and fitters of speed governors.
He said they were forced to stock a minimum of 2,000 units or else close business after being scrutinised by the works ministry.
“Speed governors are not like other products that can be diverted to other uses. We have lost contacts and a relationship with our suppliers in India who gave us a warranty of one year. It is coming to two years since we went into a partnership,†Kansiime said.
“Our speed governor project collapsed. Employees who were had trained to carry out this exercise were laid off after spending too much money on them.â€
“We secured bank loans with high interest rates to get into this business. We have not officially heard from the Government about this dilemma that has left us in a financial crisis.â€
Companies that were licensed to deal in speed governors include: Body Dynamics, Eureka Safety Systems, Spear Motors and Advance Solutions. Only those that are affiliated to car importing are the ones that are still operating as they fit vehicles with speed governors and the cost is directly shifted to the buyers.
According to the Traffic and Road Safety Act, all passenger vehicles with a capacity of seven passengers and above and goods vehicles of net weight 3.5 tonnes and above are supposed to be fitted with the speed governors.
“We have clients who bought these speed governors but have never brought their vehicles for fitting.â€