Motor Dealers Protest Digital Number Plate Delays and Corruption Allegations

Dealers of motor vehicles and motorcycles have voiced significant frustration with the government’s rollout of digital number plates, urging the termination of a 10-year contract with Russian firm Joint Stock Company Global Security. The Intelligent Transport Monitoring System (ITMS), intended to improve vehicle tracking and security via digital plates, has instead led to substantial business disruptions.

Traders recently marched to the Ministry of Works and Transport, highlighting prolonged delays in receiving number plates even after completing registration and payments. Bwire Amanya, a motorcycle dealer, stated that businesses have suffered since the project’s 2024 inception, with some waiting up to five months for plates due to frequent stock shortages. This has led to entire shipments of vehicles being held up in bonded warehouses.

One dealer reported 20 containers, carrying approximately 1,000 motorcycles, stuck at a bond due to the lack of digital plates. The cost for these plates alone exceeded Shs 714 million. “The financial losses are enormous,” Amanya emphasized, noting that the contractor’s consistent failure to supply indicates an inability to meet contractual obligations.

Hajji Siraje Lutakome, a car bond operator, echoed these sentiments, alleging that the ITMS implementation raises questions of integrity and may be designed to defraud Ugandans. He called for the contract to be terminated, citing two years of unaddressed complaints.

State Minister for Works and Transport, Fred Byamukama, acknowledged the ITMS’s shortcomings and the negative impact on businesses. He attributed delays to the contractor supplying plates in limited quantities but assured that solutions would be sought within a three-month grace period. However, dealers also accused ministry officials of demanding bribes of up to Shs 1 million to expedite plate acquisition, calling for investigations and prosecution.

Ministry officials defended the contractor, citing external factors like global supply chain issues and geopolitical conflicts, but dealers rejected this, insisting on the contractor’s ongoing failure to deliver since the system’s introduction. The ITMS was initially intended by President Museveni to enhance crime prevention by enabling quick identification of vehicles linked to criminal activity. The cost for a new digital registration plate is Shs 714,300 for motor vehicles, Shs 150,000 for replacements, and Shs 50,000 for motorcycles.

Source: https://observer.ug/news/motor-dealers-decry-corruption-delays-in-digital-number-plate-acquisition