Whistleblowers Warn of Double Payments in Shs158bn Digital Plate Deal

Whistleblowers have raised concerns over a proposed Shs158 billion procurement by the Ministry of Works and Transport involving the same company implementing Uganda’s controversial digital number plate system, warning of potential double payments and lack of transparency.

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Nyakundi Report

Newsroom 4 min read

Primary source Nile Post

Whistleblowers have raised alarms over a proposed Shs158 billion procurement by the Ministry of Works and Transport involving the same company behind Uganda’s contentious digital number plate system, warning of potential double payments and lack of transparency. The whistleblowers, whose report was obtained by Nile Post, urge Parliament, President Yoweri Museveni, and accountability agencies to halt the deal, arguing it risks paying Russian firm Joint Stock Company Global Security (JSCGS) for functions already covered under the Intelligent Transport Monitoring System (ITMS).

The proposed procurement, which has entered advanced stages, involves JSCGS supplying “Modular Motor Vehicle Registration Components” at an estimated cost of Shs158 billion. The whistleblowers contend this could mean the government is paying twice for services initially included in the ITMS, which was designed to provide end-to-end vehicle registration, tracking, and number plates. ‘The original ITMS justification was that it would provide end-to-end registration, tracking, and number plates. However, procuring registration components separately from the same vendor amounts to paying twice for the same function,’ the report states.

The concerns come amid growing complaints from vehicle dealers, customs agents, and traders about shortages of digital plates, registration backlogs, and the Shs714,300 cost of a new set of plates. Parliament has been scrutinizing the ITMS project following stakeholder complaints about supply delays and pricing. The digital plates, part of the ITMS, involve JSCGS as the service provider, with the project spanning the Ministries of Works and Transport and Security.

The whistleblowers also question the decision to retain JSCGS without an open competitive process, warning it could create a ‘vendor lock-in’ and grant a foreign company ongoing control over Uganda’s motor vehicle registry and data systems. They argue the proposed Shs158 billion cost exceeds regional benchmarks for similar systems and have called on President Museveni and Works and Transport Minister Fred Byamukama to halt the procurement pending review.

They have also demanded investigations by the Inspectorate of Government, Auditor General, and Public Procurement and Disposal of Public Assets Authority into the procurement process and its relationship with the existing ITMS contract. The whistleblowers urge Parliament’s Committee on Physical Infrastructure and the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) to summon officials from the Ministry of Works and Transport to explain the need for the additional procurement.

Earlier, the Ministry of Finance raised concerns about the ITMS project’s financial viability. Documents reviewed by the ministry revealed a proposed cost of $127 million (Shs449 billion) in 2022, but the Finance Ministry criticized the feasibility study for lacking sufficient data on affordability, repayment arrangements, and fiscal obligations. ‘There is no assessment on the affordability of the project to the Ministry of Security and Office of the President,’ the ministry noted, questioning the potential budget impact and resource requirements.

The ITMS project, initiated in 2019, was part of President Museveni’s security agenda to combat crime through vehicle tracking. Despite its stated goals of improving road safety, traffic management, and revenue collection, the system has faced scrutiny over cost, supply, and implementation. Recent delays and shortages have disrupted motor vehicle businesses, with the Kampala City Traders Association reporting weeks-long waits for plates. Parliament’s planned scrutiny of the project was postponed, but the latest whistleblower report has reignited calls for accountability over Uganda’s digital vehicle registration system.

The government has defended the ITMS as a critical tool for modernizing vehicle management, but the renewed controversy underscores persistent questions about its cost, scope, and oversight. With the proposed Shs158 billion procurement at the center of the debate, stakeholders are demanding transparency to ensure public funds are used responsibly.

The whistleblowers’ report highlights broader concerns about procurement practices and the need for independent oversight. As the Ministry of Works and Transport moves forward with the new procurement, the pressure on authorities to justify the deal and address past criticisms will likely intensify.

The situation reflects a growing tension between technological modernization and fiscal responsibility in Uganda’s public sector. With the ITMS project’s future hanging in the balance, the outcome of the ongoing scrutiny could set a precedent for how similar initiatives are managed in the country.

The latest developments underscore the importance of accountability in large-scale infrastructure projects. As the government faces mounting pressure to address the concerns raised by whistleblowers and stakeholders, the path forward will depend on its willingness to engage with critics and ensure transparency in the procurement process.

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