Parliament Questions Legality of Digital Number Plate Deal Over $134m Cost Discrepancy

What the report says

Lawmakers in Uganda are scrutinizing the government’s digital number plate project, officially tied to the Intelligent Transport Monitoring System (ITMS), over questions about how the deal was structured, priced and approved. According to Nile Post, the Parliamentary Committee on Physical Infrastructure pressed officials on whether the project complied with the Public Private Partnership Act and procurement rules, and whether required due diligence and Cabinet approval were completed.

A major focus of the inquiry was a reported $134 million difference between the contractor’s feasibility estimate of about $123 million and the government’s financial model of $257 million. Committee chair Mwine Mpaka asked who defined the system requirements, how the contract value was set and whether the project description as “digital number plates” accurately reflected what had been promised.

The hearing also raised concerns about where driver payments go and whether the arrangement benefits a private company rather than government accounts. Internal Affairs Minister Gen. Kahinda Otafiire told MPs he had originally opposed the project, saying he doubted imported Russian technology would work smoothly with Uganda’s existing Chinese-made surveillance systems. He also said the installed system appeared more like fleet management than a fully integrated monitoring platform.

The inquiry comes amid broader scrutiny of the project’s implementation, including the Kyambogo facility linked to local plate production. Works Minister Gen. Edward Katumba Wamala reportedly said the site was not a manufacturing factory, adding to questions about whether the project is delivering what officials intended.