Motor Dealers Decry Corruption, Demand End to Digital Number Plate Contract

[Da Dona]

Motor vehicle and motorcycle dealers have called on the government to terminate its 10-year contract with Russian firm Joint Stock Company Global Security, accusing the company of failing to deliver digital number plates on time and crippling Uganda's motor vehicle business.

Speaking to State Minister for Works and Transport, Fred Byamukama during a protest at the Ministry of Works and Transport on Thursday, the dealers said hundreds of newly imported vehicles and motorcycles remain parked in bonded warehouses because owners cannot obtain digital number plates. Although customers have paid registration fees, many have waited weeks or even months for plates, delaying deliveries and exposing dealers to mounting storage costs.

Bwire Amanya, a motorcycle dealer based in Nakawa, said businesses have struggled since the digital number plate project was introduced in 2024. He alleged that the contractor frequently runs out of stock, forcing some dealers to wait for as long as five months after making payment before receiving number plates.
Amanya explained that each digital number plate for a new motorcycle costs Shs714,300. In one case, his company paid more than Shs714 million for digital number plates covering 1,000 motorcycles. However, the motorcycles remain stuck in a bonded warehouse because the Uganda Revenue Authority cannot release them without registered number plates.

The traders said the prolonged delays have disrupted business operations, increased storage costs, delayed deliveries to customers and tied up millions of shillings in capital. They warned that the situation is eroding customer confidence and threatening jobs across the motor vehicle industry.

Hajji Siraje Lutakome, a car bond operator, said dealers have repeatedly engaged officials from the Ministry of Works and Transport over the past two years, but little progress has been made. He further alleged that the implementation of the Intelligent Transport Monitoring System (ITMS) raises serious questions about the integrity of the project, claiming it appears designed to defraud Ugandans and warning that the contractor could eventually abandon it if the current challenges persist.

The traders also alleged widespread corruption in the issuance process, claiming some officials demand bribes of up to Shs1 million to fast-track the release of number plates. They said those unwilling to pay unofficial fees are forced to wait much longer, while others receive preferential treatment. The dealers called for investigations and prosecution of anyone found involved in the alleged extortion.

According to the dealers, the delays have severely affected business operations, with many customers accusing dealerships of fraud after paying for vehicles that cannot legally be driven without registration plates. They warned that the crisis is threatening jobs, reducing vehicle sales, disrupting cash flow, and affecting government revenue from the automotive sector.

In response, the Ministry of Works and Transport acknowledged the delays, describing them as unacceptable. Officials attributed the shortages to logistical challenges affecting the importation of components used to manufacture the digital number plates, citing global supply chain disruptions and international conflicts that have slowed deliveries. The ministry said it is working with the contractor to restore normal production and improve service delivery.

The digital number plate project was introduced under the Intelligent Transport Monitoring System (ITMS) to strengthen national security by enabling authorities to track vehicles involved in crime. However, dealers argue that while they support the security objectives, the current implementation has become an obstacle to business and should either be overhauled or handed to a more capable contractor.

Source: Observer​