MPs Halt Procurement of PIVoC Companies
The parliamentary committee of trade has directed the Uganda National Bureau of Standards to halt the process of procuring new companies to offer inspection services under the Pre-Export Verification of Conformity to Standards Programme (PVoC) until the committee guides the sharing agreement of the royalties
The committee of trade has also summoned Manufacturers of energy drinks to justify the efficacy and safety of their products.
The directive was made after UNBS failed to justify why the government of Uganda is giving as little as 30% from royalties collected from inspection of goods especially cars. MPs contend that Uganda loses lots of money from this lucrative exercise by leaving it to private companies.
They are five companies providing PIVoC services including East African Auto Mobile Services Company. LTD, Jabal Kilimanjaro Auto Elect Mech for used motor vehicle Inspection and TUV Rheinland, Intertek International Ltd, and Societe General De Surveillance SA (SGS) for inspection of General Goods.
Even after taking a lion share, the committee established that some service providers are doing shoddy work or no work at all after the Katerera county MP Muhammad Kato tendered in evidence that some companies issue clearance certificates for shipping to motor vehicles without inspecting them.
It also came to the attention of the committee of trade that over 2000 motor vehicles that were verified by the PIVoC companies have been impounded by Uganda Revenue Authority yet they were cleared by UNBS. They tasked UNBS to interfere in the matter and save Ugandan imported from losses.
Service providers have been given five days to make their case before the committee takes a decision.
However, the Executive Director of UNBS David Ebiru told the committee of trade that the agency is ready to take over inspection of goods from private companies if the government allocated them 47bn shillings to build capacity.
Meanwhile to the committee of trade has summoned Manufacturers of energy drinks to appear before the committee and explain ingredients in their drinks and their purported functions. MPs are concerned that many energy drinks are not safe for consumption and use misleading adverts.