Digital Number Plates Deal Unlawful, Says Minister Mayanja

The controversial digital number plates project in Uganda has hit a significant roadblock as Minister Sam Mayanja informed Parliament that the contract with Russian firm Joint Stock Company Global Security is not legally binding.

Appearing before the Physical Infrastructure Committee, Mayanja stated that the agreement failed to meet essential conditions required for it to be legally enforceable. He questioned the government’s commitment to a multi-million dollar project without satisfying key technical and financial prerequisites.

“As the Attorney General, I see no contract to commit to here. There is no contract that binds the State of Uganda because none of the conditions that go to the root of the matter has been fulfilled,” Mayanja told the committee. This assessment casts serious doubt on the legal foundation of the Intelligent Transport Monitoring System (ITMS).

The project, which involves introducing digital number plates and vehicle-tracking technology, has faced scrutiny over its cost and financing model. Motorists are expected to pay for the new plates, while the private investor aims to recoup its $257 million investment partly through revenue from traffic offenses.

Parliamentary concerns were also raised about the financial model, with MPs noting the apparent absence of crucial documents like feasibility studies, risk assessments, and value-for-money analyses. These omissions make it difficult to ascertain the project’s financial soundness and the benefits to the public.

Adding to the controversy, there is confusion surrounding the Shs 714,300 cost of the digital plates. Allegations surfaced that some information provided to the committee regarding costs was generated using artificial intelligence, further complicating the cost breakdown and justification.

Further investigation revealed that the number plates themselves are not trackable; instead, the system relies on a separate tracking device installed in the vehicle. Questions have also been raised about the capacity-building aspect of the project, with concerns that local entity National Enterprise Corporation (NEC) may not be acquiring the necessary knowledge transfer as planned.