Kenneth Kazibwe
Government is set to roll out digital number plates with
each car owner set to pay shs735,000 for a digital number plate that will
replace the current ones.
Addressing journalists on Wednesday, KACITA chairman, Musoke
Thadeus Nagenda said they have learnt of a move by government to roll out the
digital number plates starting July, 1, 2023, a decision he said is rushed.
"Having thoroughly analyzed and studied what the new
registration process entails, the consumers of the service and all the players
in the chain, we think this is rushed.There hasn't been any form sensitization
of consumers and stakeholders. We realised that was no stakeholder engagements
at most levels. The implication to this is that the July, 1, 2023
implementation date is too soon and if implemented, this will cause a lot of
business stampede as well public outcry,"Nagenda said.
He said that having engaged with their members especially
those in direct usage of the above registration service who include motor
vehicle dealers and importers, bonded warehouses owners, motorcycle importers,
automobile assemblers and manufacturers, asset financing companies in the
transport and logistics sector, fleet management companies, clearing and
forwarding entities, drivers and riders including individual owners, they
realized none of these was consulted.
Too expensive
KACITA also raised concern over the "abnormal
cost" of the digital number plates and the rational of payment gap that
they say are unfair.
"We have noticed that the new cost will be more
expensive compared to the that of regional neighbours like Kenya where number
plates cost Ksh 3,000 (shs80,000) for motor vehicles and Kshs 1,500 (shs40,000)
for motorcycles and they bear the same security features. Comparison on the
costs per plate from shs125,000 to shs713,000 for motorcycles and from 137,000
to 713,000 for motor vehicles raises the overall cost of the unit and this is
so ridiculous," Nagenda, the KACITA chairman said.
He said dealers are already facing various financial
challenges, including high fuel costs, maintenance expenses, insurance cents
and increasing the cost of digital number plates and tracking devices to their
financial burden will push them further into financial distress.
The traders asked to know the breakdown of the shs735,000
for each digital number plate to be undertaken by Russian company, M/S Joint
Stock Company Global Security.
"We also need an inquiry on the status of the
credibility of the service provider According to various reports, the company
is said to be bankrupt and non-operational. There is also no proven track
record where this company has carried the same project successfully yet we have
credible local potential service providers that would do the same thus
defeating the BUBU initiative. This compromises the national image and a
potential ticking time bomb in case they fail to deliver, and to mention
capital flight and repatriation."
The traders said there will be administrative bureaucracies
after government indicated that any changes on the car must be made after
consultation with the chief licensing officer and in writing.
They say this is not practical.
"This is not practical since the geographical and
infrastructural set ups are different, and it is looked at as time wastage
since not all Ugandans may not have the potential to write or even communicate
explicitly and on time," Nagenda said.
KACITA said there are many data protection and control
concerns for both business and end users , adding that it is imperative to know
who collects and maintains the data.
"What data protection measures have been put in place?
What is the relationship between asset financers, users an downers as well as
the government? where does this leave the Business integrity concerns? There
are security concerns for both personal and business users like those in fleet
and logistics. On business security, did you take into consideration the huge
inventory management risks? How will this facilitate financiers of assets taken
out on loan Security is compromised in case of hacking, mistaken identity, and
personal security due to live locations shown 24 hours."
"The use of untested technology, proof of success, in
Delhi and California where a similar project was done, there is no much impact
created. For California, the project pilot started in 2018 and it was
implemented in 2022, why do Ugandans like rush and untested programs?"
Recommendations
KACITA recommended that the project should have a pilot plan
of about five years coupled with a lot of sensitization.
"We also recommend that this project be implemented in
a phased manner beginning with government vehicles and motorcycles. It can then
be made voluntary to the public from which the full enrollment can be effected.
The cost of the number plates should not more than shs200,000 for a new one on
motor vehicles and shs130,000/- for motorcycles and replacement fee maintained
at 50,000/- for all categories," the traders advised.
They also asked for proof that 90% of the staff for the
company implementing the project comprises locals and at most 10% foreigners
where there are no capable Ugandans to execute the roles.
"While piloting the project, fitment centres should be
placed in all bonds, other sales and distribution points across the country as
opposed to being concentrated in the central region. There should be more
training and capacity building opportunities for installment and maintenance of
the number plates especially to the local players."
"We don't need to rush such a sensitive project unless
there is any other hidden objective apart from what the eye can see. Giving
this project an extra one year and it being implemented in a phased manner
beginning with government vehicles and motorcycles would be a great exemplary
move."