Overview:
The traders argue that the project, which was introduced to track all registered motor vehicles and motorcycles through digital number plates, has instead disrupted business because of prolonged shortages of number plates and delays at centralized fitting centres.
Kampala. Players in Uganda’s motor trade sector have called on the government to terminate its 10-year contract with Russian firm Joint Stock Company Global Security, citing persistent failures in the implementation of the Intelligent Transport Monitoring System (ITMS).
The traders argue that the project, which was introduced to track all registered motor vehicles and motorcycles through digital number plates, has instead disrupted business because of prolonged shortages of number plates and delays at centralized fitting centres.
On Thursday, motorcycle dealers, car dealers and bond operators marched to the Ministry of Works and Transport to protest what they described as a failed rollout that has left hundreds of vehicles and motorcycles stranded at bonded warehouses.
During a meeting with the Minister of Works and Transport, Mr Fred Byamukama, the traders complained that despite completing registration and paying the required fees, they continue to wait for months before receiving digital number plates.
Mr Bwire Amanya, a motorcycle dealer in Nakawa, said the digital number plate project has severely affected businesses since its rollout in 2024.
According to Mr Amanya, the contractor frequently runs out of stock, forcing some dealers to wait for up to five months after payment.
“I know of one motorcycle company with 20 containers carrying about 1,000 motorcycles that are still being held at the bond because there are no number plates. This shows how seriously our businesses have been affected. Imagine paying for number plates and waiting more than three months without receiving them. The financial losses are enormous,” he said.
Each digital number plate for a newly registered motor vehicle costs Shs714,300, meaning the company paid more than Shs714 million for plates covering 1,000 motorcycles. However, the motorcycles remain at the bonded warehouse because the Uganda Revenue Authority cannot clear them without registration plates.
Mr Amanya argued that the contractor’s continued inability to supply the number plates demonstrates its failure to meet its contractual obligations to produce and deliver them.
Hajji Siraje Lutakome, a car bond operator, said traders have repeatedly engaged officials from the Ministry of Works and Transport over the past two years, but the situation has not improved.
He urged the government to terminate the contract, arguing that the contractor has consistently failed to deliver on its obligations.
Mr Lutakome further alleged that the manner in which the ITMS has been implemented raises questions about the project’s management, warning that the contractor could eventually abandon the project after causing significant losses to traders.
Responding to the complaints, Mr Byamukama acknowledged shortcomings in the implementation of the ITMS, saying the delays have negatively affected businesses and undermined the project’s intended security objectives.
He said the issues should be resolved within the three-month grace period.
“Buyers are accusing companies of theft after waiting months for number plates. The President is demanding faster service delivery. We streamlined permits and passports, and digital number plates should be no different,” Mr Byamukama said.
The minister attributed the delays to the contractor supplying number plates in limited quantities and said the ministry would engage the company to find a lasting solution.
The traders also accused some officials in the Ministry of Works and Transport of soliciting bribes of about Shs1 million to fast-track the processing and release of digital number plates. They called for investigations and the prosecution of any officials found culpable.
However, ministry officials defended the contractor, saying implementation had been affected by external factors, including disruptions to imports arising from the conflict involving Iran and wider global economic challenges.
The traders rejected the explanation, insisting that shortages of digital number plates have persisted since the project was launched.
President Yoweri Museveni has previously said the Intelligent Transport Monitoring System was introduced to strengthen crime prevention by enabling security agencies to quickly identify vehicles and motorcycles linked to criminal activities.
Under the current arrangement, owners or importers of newly registered motor vehicles pay Shs714,300 for a digital registration plate. Replacing an existing registration plate with a digital one costs Shs150,000, provided the vehicle is already registered in the owner’s name, while digital number plates for motorcycles cost Shs50,000.