A legal dispute is jeopardizing the Pre-Export Verification of Conformity (PVoC) procedures for cars imported into Uganda.
Kampala Capital City Traders Association (Kacita), an umbrella association for traders in the city, has requested parliamentary intervention in this matter. They assert that there is inadequate provision for PVoC services, specifically in inspecting used motor vehicles. Kacita also accuses the Uganda National Bureau of Standards (UNBS) of granting a monopoly to Quality Inspection Services Inc Japan (QISJ Limited), a Japanese company, to carry out the inspections. They argue that QISJ’s remote location relative to Uganda has raised costs and impacted inspection quality.
Kacita further claims that UNBS lacks the overall capacity to inspect used motor vehicles in Uganda, potentially allowing substandard vehicles to enter the country uninspected, including those contaminated with radiation.
Kacita has urged Parliament to address the issue, calling for the inclusion of multiple service providers to enhance transparency, reduce business costs, and fulfill the objectives of PVoC fairly.
In response, Charles Musekuura, the former National Standards Council chairperson, refuted Kacita’s claims, asserting that they did not grasp the procurement process and the rationale for selecting QISJ Inc. According to Musekuura, UNBS initiated a new procurement process when the contracts of QISJ and another company, EAA Co. Limited, expired. UNBS extended both companies’ contracts temporarily until August 31, 2023, while the procurement process was underway.
QISJ emerged as the best-evaluated bidder in the procurement process, and two other bidding companies, EAA Co. Limited and A1J Limited, filed applications for administrative review before the Public Procurement and Disposal of Public Assets Authority (PPDA) tribunal. The PPDA tribunal canceled the procurement and raised concerns about the bid documents submitted by EAA Co. Limited.
Trade minister Francis Mwebesa supported the tribunal’s findings, stating that EAA Co. Limited had obtained the 2018 to 2023 contract fraudulently. Dissatisfied with the tribunal’s decision, UNBS contested it in the High Court, resulting in a temporary injunction on the interim procurement and stay of execution of the PPDA tribunal order on October 6.
UNBS argued that suspending the PVoC services by the tribunal would lead to significant revenue losses for both UNBS and the government, as well as causing delays for importers. It also noted that UNBS lacked the capacity to perform destination inspections to prevent non-conforming vehicles from being imported into Uganda.
On October 6, Kintu Simon Zirintusa, the acting registrar of the Civil Division in the High Court, issued an order staying the execution of the PPDA tribunal’s decision and an interim order restraining the recruitment of an interim service provider, pending the hearing of the main case.
