Updated by Faith Barbara N Ruhinda at 1058 EAT On Monday 6 July 2026

Motor vehicle and motorcycle dealers have called on the government to terminate its 10-year contract with Russian firm Joint Stock Company Global Security, alleging corruption and persistent failures in the implementation of the Intelligent Transport Monitoring System (ITMS).

The ITMS was introduced to improve vehicle tracking and security through the issuance of digital number plates. However, dealers say the project has instead disrupted their businesses, citing chronic shortages of digital number plates and lengthy delays at centralized fitting centres.

On Thursday, motorcycle dealers, motor vehicle dealers and bond operators marched to the Ministry of Works and Transport to demand answers over what they described as a failed project that has severely affected their operations.

During a meeting with the State Minister for Works and Transport, Fred Byamukama, the traders said they had endured prolonged delays in receiving number plates despite completing the registration process and paying all the required fees. They argued that the setbacks have left many vehicles and motorcycles grounded, resulting in significant financial losses and growing frustration across the sector.

Bwire Amanya, a motorcycle dealer based in Nakawa, said businesses have struggled since the rollout of the digital number plate project in 2024, blaming persistent shortages for disrupting operations. He said the contractor frequently runs out of stock, forcing some dealers to wait up to five months after making 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,” Amanya said.

Each digital number plate for a new motorcycle costs Shs714,300, meaning the company paid more than Shs714 million for plates for 1,000 motorcycles. However, the motorcycles remain at the bonded warehouse because the Uganda Revenue Authority cannot release them without registration plates.

Amanya argued that the contractor’s continued inability to supply digital number plates raises questions about its capacity to fulfil its contractual obligations.

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 their concerns have largely gone unaddressed.

He urged the government to terminate its contract with the Russian contractor, arguing that the company has consistently failed to meet its contractual obligations.

Lutakome further questioned the implementation of the Intelligent Transport Monitoring System, alleging that the project lacks transparency and warning that its continued shortcomings risk undermining public confidence. He also expressed concern that the contractor could eventually abandon the project if the challenges remain unresolved.

Responding to the complaints, Byamukama acknowledged shortcomings in the implementation of the Intelligent Transport Monitoring System, saying the delays had disrupted business operations and undermined the project’s intended objectives.

He said the government expects the contractor to address the outstanding challenges within the three-month grace period it has been granted, warning that appropriate action would be taken if the problems persist.

“Buyers are accusing companies of theft because they have waited months for number plates. The President has directed us to improve service delivery. We streamlined the issuance of permits and passports, and digital number plates should be no different,” Byamukama said.

He attributed the delays to the contractor’s limited supply of digital number plates and assured dealers that the Ministry of Works and Transport would engage the company to find a lasting solution.

The dealers also accused some officials at the Ministry of Works and Transport of soliciting bribes of about Shs1 million to fast-track the issuance of digital number plates.

They called for a thorough investigation into the allegations and urged the government to prosecute any officials found culpable.

The dealers rejected the minister’s explanation, insisting that the contractor has consistently failed to supply adequate digital number plates since the system was rolled out.

President Yoweri Museveni has previously said the Intelligent Transport Monitoring System was introduced to strengthen crime prevention by enabling security agencies to quickly identify motor vehicles and motorcycles linked to criminal activity.

Under the current fee structure, owners or importers of new 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 registered in the owner’s name, while owners of motorcycles pay Shs50,000 for a digital number plate.

-Observer

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