Members of the Associated Motor Dealers Association appeared before Parliament’s Committee on Physical Infrastructure where they said despite the official government fee of Shs714,300, they are paying up to UGX3M in bribes to get number platesCar dealers are incurring extra costs of between UGX500,000 and UGX3 million to expedite the acquisition of car number plates, despite the official government fee of UGX714,300, due to scarcity and alleged hoarding by Joint Stock Company Global Security Ltd (JSCGS).The revelation was made by Marvin Ayebare, the Public Relations Officer of the Associated Motor Dealers Association, while appearing before Parliament’s Committee on Physical Infrastructure during a probe into the impact of digital number plates on Uganda’s transport sector on September 2, 2026.“As a patriotic Ugandan, I am disturbed to say this, but the new number plate system has led to a vice we would not want to be part of, and that is corruption. Right now, if you want to get a number plate, you have to part with something extra to go above the normal queue. We as an industry do not support this, but circumstances have put us in a position where we cannot operate if we do not cooperate. Somehow, when you churn out something extra, a number plate will appear,” Ayebare said.His admission prompted the Committee Chairperson, Mwine Mpaka, to ask the dealers to explain how the bribery transactions are carried out and how much is charged as “cooperation fees,” yet the official rate for a new number plate is UGX714,300 while renewal of old plates costs UGX150,000.“The cooperation fee is varied, ranging from UGX500,000 to UGX3 million depending on how badly you want your number plate. Imagine a situation where you have a contract with a clear deadline and you are in breach if you fail to deliver. You either lose that contract or you have to invariably cooperate,” Ayebare explained.William Namutale, the National Vice Chairman of the Uganda Clearing and Forwarding Industry, told Parliament that the vice peaked between May and August 2025 when Uganda had no number plates at all, with the company manufacturing only 20 to 30 plates per day. This forced dealers to scramble for the few plates available, with the highest bidder taking them.“There is a team that allocates the number plates and another that fits them. If you need a plate fitted, you deal with the fitting team because they are the ones people interact with. They know how they coordinate internally to release the plates,” Namutale said.He said the bribe charged depended on one’s bargaining power and the type of vehicle. For vehicles that had already been registered, the official fee is UGX150,000, but dealers said they could never get a plate at that price.The Committee was also informed of a backlog of about 47,000 applications filed with JSCGS. Namutale cited a case where he applied for a new number plate on May 13, 2025, but it was only fitted on August 1, 2026, after using his position as Vice Chairperson of the dealers’ association.He accused the service provider of trading with money paid by dealers. “The person has possibly been doing money lending with my money. For example, motorcycle importer Dura Motors had 3,000 motorcycles and paid Shs2.142 billion for number plates for three months without getting them. If that money had been borrowed from a bank at 10% interest, how much do you think he lost?” he asked.Legislators also learnt that at the current production capacity, it will take over six years for government to install digital number plates on old motor vehicles and motorcycles. This explains why the company is yet to transition all vehicles as envisaged in its contract with government.“We have 2.2 million registered vehicles. We register about 250 vehicles and 600 to 1,000 motorcycles daily. If they maintain the current capacity, they need 80 months, which is 6.7 years, to clear the current backlog. Every day we are registering new ones. Why should Uganda suffer for that long?” Namutale questioned.Mwine likened JSCGS operations to a pyramid scheme, alleging the company uses money from new entrants to run its operations.“So, they keep using money of new entrants to run the pyramid. You are telling us Dura Motors paid Shs2.1 billion and didn’t get number plates for three months. Even when this money is fixed, the company earns interest,” Mwine said.Information before the Committee indicates the company’s capacity has dropped from 350 to 100 number plates per day. Mwine noted that with 2.2 million vehicles still using old plates, it would take a very long time to complete the transition. The Committee is probing the impact of digital number plates following numerous public complaints about delays. The inquiry will extend to the Uganda Revenue Authority because the delays are affecting tax collections. The Committee also plans to interface with President Museveni.“We are going to ask through Speaker Jacob Oboth to meet another stakeholder, the President, on this matter to get his input and guidance. We shall also meet the Ministry of Justice, Ministry of Works, Ministry of Internal Affairs and Ministry of Security to establish how it started and whether the arrangement has achieved its intended purpose,” Mwine said.According to the Committee, Uganda is losing over UGX4 billion per week due to delays in issuance of digital number plates.Abel Mwesigye, the Chief Executive Officer of Kampala City Traders, said affected members include motor vehicle dealers and importers, bonded warehouse owners, motorcycle importers, automobile assemblers, asset financing companies, transport and logistics companies, fleet management companies, clearing firms, drivers, riders and individual vehicle owners.He questioned the efficacy of the security features embedded in the digital plates, citing reports of stolen vehicles and motorcycles fitted with the new plates that police have failed to trace.Ayebare also questioned the USD 90 million investment that JSCGS promised, saying he is yet to see it reflected in operations, including the promised installation points in major warehouses.“The effectiveness of this security gadget has come into question. If you double-check with police, there are a number of vehicles and motorcycles that have been stolen and have failed to be traced. The service provider failed to clearly communicate delivery timelines to the public. We have no clear timelines anymore. We have lost contracts, some of us are in court for failure to deliver due to a third party over whom we have no control,” Ayebare said.The Association also questioned government’s decision to monopolise the fitting of digital number plates under one provider, compared to the previous duopoly of GM Tumpeco and Arnold Brooklyn and Company Limited, where accountability ensured no delays.“Right now, we have been cast into a monopoly as consumers. It beats our understanding why a service of such a crucial nature was monopolised. Why was it switched from a functional duopoly to a dysfunctional monopoly and the attendant risk that has come with it?” Ayebare asked.The post Number Plate Scarcity Fuels Corruption as Dealers Pay Up to UGX3M in ‘Cooperation Fees’ appeared first on Business Focus.