Govt to sue CHOGM car supplier
Dec 22, 2009
THE Ministry of Works and Transport is taking legal action against Motorcare, the supplier of BMW vehicles used during the 2007 Commonwealth Heads of Government Meeting (CHOGM), the ministry’s permanent secretary has revealed.
By Madinah Tebajjukira and Catherine Bekunda
THE Ministry of Works and Transport is taking legal action against Motorcare, the supplier of BMW vehicles used during the 2007 Commonwealth Heads of Government Meeting (CHOGM), the ministry’s permanent secretary has revealed.
Appearing before the public accounts committee yesterday, Stephen Muganzi said the ministry had confirmed that the vehicles supplied by Motorcare/Intercar (previously called Europcar) were old and were not of the same specifications as agreed in the contract.
The suppliers and the German BMW Group in adverts in the Ugandan newspapers in recent days have insisted that the cars were brand new and met all specifications.
According to Muganzi, investigations by the ministry revealed that the vehicles were manufactured in 2005 and not 2007. The models were also altered, according to the PS.
“It is true, the vehicles were not as per the agreement. We are going to take the supplier to court for breach of contract,†he told the legislators.
He noted that the ministry had entered into arbitration with the supplier but the talks, mediated by the Solicitor General, had failed.
“The arbitration seems not to yield good results and they have become very complicated,†he said.
According to the Auditor General’s report, scrutiny on the BMW website of the vehicle identification numbers revealed that all the 30 saloon cars the Government bought were manufactured in November 2005 and left hand.
The committee, chaired by Nandala Mafabi (FDC), yesterday heard that even the 114 vehicles that were hired to transport CHOGM delegates were old, had different specifications from what was agreed and had their models altered.
Muganzi emphasised that the vehicles were left-hand driven, yet according to the agreement, Motorcare was supposed to supply right-hand driven cars.
On further scrutiny by the committee about the authenticity of the vehicles, Muganzi said the supplier did not give them production manuals, making it difficult to know their details at the time of delivery.
Foreign minister Sam Kutesa and his family had 20% shares in Europcar, which later changed its name to Intercar. They later transferred their shares to Robert Kabonero.
Kutesa’s daughter, Elisabeth Kyomugisha, was a signatory to three accounts of Europcar, two at DFCU and one at Stanbic Bank.
The MPs also heard that Swift Link Tours and Travel, a company that provided 577 rental cars at a cost of sh3.2b during CHOGM, had 10 vehicles with the same number plates.
“It is possible that the tour company did it intentionally to make the Government incur double payment on the same vehicles,†said Theodore Ssekikubo (NRM).
The committee directed CID to take up the matter with the Uganda Revenue Authority.
Muganzi further told the committee that the ministry contracted Auto Wash and Mayanga washing bays to wash all the CHOGM vehicles for an unspecified amount of money but the carwash companies refused to hand over documents for verification.
“Sh86m was advanced to companies to wash vehicles. The amount was not accounted for and I could not verify the number of times the vehicles were washed,†reads the Auditor General’s report.
Asked why the cars were not washed in the ordinary washing bays, Muganzi explained that since the vehicles were perceived to be new and of a more complicated grade, they had to hire an expert to carry out the washing in order to maintain the vehicle’s original appearance.
The MPs also demanded for the accountability of sh302m spent on fuel during CHOGM. MPs were shocked when their colleague, Tom Kazibwe (NRM), said most vehicles used during CHOGM were all the time parked at Kololo Airstrip, making them wonder how the money on fuel was spent.
They demanded for contract documents and evaluation reports on fuel and washing of the vehicles.
THE Ministry of Works and Transport is taking legal action against Motorcare, the supplier of BMW vehicles used during the 2007 Commonwealth Heads of Government Meeting (CHOGM), the ministry’s permanent secretary has revealed.
Appearing before the public accounts committee yesterday, Stephen Muganzi said the ministry had confirmed that the vehicles supplied by Motorcare/Intercar (previously called Europcar) were old and were not of the same specifications as agreed in the contract.
The suppliers and the German BMW Group in adverts in the Ugandan newspapers in recent days have insisted that the cars were brand new and met all specifications.
According to Muganzi, investigations by the ministry revealed that the vehicles were manufactured in 2005 and not 2007. The models were also altered, according to the PS.
“It is true, the vehicles were not as per the agreement. We are going to take the supplier to court for breach of contract,†he told the legislators.
He noted that the ministry had entered into arbitration with the supplier but the talks, mediated by the Solicitor General, had failed.
“The arbitration seems not to yield good results and they have become very complicated,†he said.
According to the Auditor General’s report, scrutiny on the BMW website of the vehicle identification numbers revealed that all the 30 saloon cars the Government bought were manufactured in November 2005 and left hand.
The committee, chaired by Nandala Mafabi (FDC), yesterday heard that even the 114 vehicles that were hired to transport CHOGM delegates were old, had different specifications from what was agreed and had their models altered.
Muganzi emphasised that the vehicles were left-hand driven, yet according to the agreement, Motorcare was supposed to supply right-hand driven cars.
On further scrutiny by the committee about the authenticity of the vehicles, Muganzi said the supplier did not give them production manuals, making it difficult to know their details at the time of delivery.
Foreign minister Sam Kutesa and his family had 20% shares in Europcar, which later changed its name to Intercar. They later transferred their shares to Robert Kabonero.
Kutesa’s daughter, Elisabeth Kyomugisha, was a signatory to three accounts of Europcar, two at DFCU and one at Stanbic Bank.
The MPs also heard that Swift Link Tours and Travel, a company that provided 577 rental cars at a cost of sh3.2b during CHOGM, had 10 vehicles with the same number plates.
“It is possible that the tour company did it intentionally to make the Government incur double payment on the same vehicles,†said Theodore Ssekikubo (NRM).
The committee directed CID to take up the matter with the Uganda Revenue Authority.
Muganzi further told the committee that the ministry contracted Auto Wash and Mayanga washing bays to wash all the CHOGM vehicles for an unspecified amount of money but the carwash companies refused to hand over documents for verification.
“Sh86m was advanced to companies to wash vehicles. The amount was not accounted for and I could not verify the number of times the vehicles were washed,†reads the Auditor General’s report.
Asked why the cars were not washed in the ordinary washing bays, Muganzi explained that since the vehicles were perceived to be new and of a more complicated grade, they had to hire an expert to carry out the washing in order to maintain the vehicle’s original appearance.
The MPs also demanded for the accountability of sh302m spent on fuel during CHOGM. MPs were shocked when their colleague, Tom Kazibwe (NRM), said most vehicles used during CHOGM were all the time parked at Kololo Airstrip, making them wonder how the money on fuel was spent.
They demanded for contract documents and evaluation reports on fuel and washing of the vehicles.