Mwine Mpaka, Chairperson of the Physical Infrastructure CommitteeBy Prisca WanyenyaParliament has learnt that Joint Stock Company Global Security Ltd (JSCGS), the Russian firm contracted by Government to fit digital number plates on motor vehicles, is expected to recoup its $257m (Shs1.006 trillion) investment in Uganda within 10 years, with Government entitled to only 20% of collections from fines, while the company takes 100% of number plate fees and 80% of fines.The revelation was made by Mwine Mpaka, Chairperson of the Physical Infrastructure Committee, during a meeting with the Ministry of Security, Ministry of Works and Transport and Ministry of Internal Affairs on September 30, 2026, convened to investigate delayed issuance and implementation of digital number plates.“When you look at the financing model, the company says it will invest $257m in Uganda. According to the contract, they are supposed to recover this money in 10 years. One of the investments is software worth $25m which they leave for us after 10 years, but you have again given them a gift of Shs158bn to provide the same software,” Mwine said.“Ugandans are paying for number plates and they are not receiving them. In your letter, you clearly state, and the Shs106bn you say we have lost did not happen in three months, this has been happening over time. So, who determined these costs on our behalf? We want you to point us in the right direction, because at that time we were all vulnerable, we wanted security and people to be tracked, but you could have used our vulnerability. Tell us which ministry, which individuals established that a motor vehicle should pay Shs714,300 and at the same time, the same company takes 80% even of fines and we take only 20%,” he added.Moses Bekabye, Technical Advisor for Economic Affairs at the Ministry of Finance, said he was not personally involved in determining the cost but explained that the digital plate kit, which includes the plate, trackers and other components, costs about $150 on the international market and Government settled on $200 for Uganda to ensure liquidity for the investor to recoup financing.“There were cost subsidisation assumptions. For instance, if you wanted to replace the number plates, the old number plates cost is Shs150,000, but the actual cost is actually $200 (Shs714,000). So new motorcycles and new vehicles pay $200 because they are cross-subsidising these other ones. The reason we did that was political and economic because you already have a number plate, you paid for it, Government is asking you to replace it,” Bekabye said.“We thought it would be unfair for them to pay $200, but if someone is importing a vehicle or motorcycle and wants to drive it, $200 is not a constraint at all because this person has already made the decision to pay the price of the vehicle, including the number plate,” he added.Government failed to explain how much JSCGS has so far recouped, only revealing that the company had invested $115m as of July 20, 2026.This came after Mwine cited the financing model where the Russian firm pledged to invest $257m, including $25m software to be left for Uganda after 10 years, yet Government plans to spend Shs158bn to provide the same software.Winston Katushabe, Commissioner for Transport, Regulation and Safety and Chief Licensing Officer, defended JSCGS, saying sanity has been restored after the number plate shortage crisis between May and July 2026, and current delays are due to vehicle owners failing to provide complete information to process plates within 24 hours.“We have reduced the backlog. The team committed that by end of August they will have. Going by current trends, I would think there is now some sanity. Some challenges may not necessarily be from Ministry of Works or JSCGS, but also from clients through their agents not giving us the right information. If you provide all information, our turnaround time is 24 hours,” Katushabe said.The Committee, however, questioned Katushabe over his change of stance, with Mwine pointing to a June 1, 2026 letter Katushabe wrote to the Intelligent Transport Monitoring System Project Manager at JSCGS complaining that manufacture and installation of plates had dropped from 350 units to 100 per day.In the letter, Katushabe noted that only 24,309 number plates had been issued out of 2.2 million vehicles meant to transition, meaning 2,175,691 vehicles were awaiting digital plates, while over 282 vehicles in bonds whose owners had paid were yet to be given plates.Katushabe said in the letter: “Citizens who lost, damaged or had plates stolen face up to 12 weeks delay or more instead of the maximum two days replacement for damaged and seven days for lost plates. Government and security vehicles are equally affected. Some upcountry centres have suspended plate issuance due to lack of installation kits.”“Public safety and security risk, economic loss and inconvenience, proliferation of fake plates, long delays have revived trade in counterfeit plates and unauthorised plates. This exposes citizens to fraud and enables criminals to evade traffic enforcement. It also damages the integrity of the National Vehicle Registry,” he added.He also warned of loss of public confidence and fiscal impact: “Both the Ministry of Works and Uganda Revenue Authority lose motor vehicle licence fees that cannot be issued without plates and non-tax revenue collections affected by pending registration transactions is to a tune of Shs106.6bn.”“Estimated revenue loss exceeds Shs4bn per week. This will be quantified and recovered from you under the contract. Your failure to provide adequate digital registration plate installation kits is a breach of performance clauses. Government is entitled to liquidated damages and penalties,” Katushabe wrote.Katushabe defended the letter, saying it was based on the crisis at the time and not that performance was generally bad, but that the Ministry had engaged the company several times and needed a quick answer to inform the public. He said the Russian firm acknowledged logistical challenges in flying in components.Security Minister Jim Muhwezi admitted implementation has at various points been affected by intermittent shortages of registration plates, principally arising from international supply chain and logistical challenges, and promised Government will continue to monitor compliance to ensure future supply disruptions do not adversely affect service delivery.The post Russian Firm to Take 100% of Number Plate Fees, 80% of Fines – MPs Told appeared first on Business Focus.