Citizens of Uganda have connected the dots to identify the entity responsible for the outrageous Electronic Penalty System (EPS), which is currently causing distress among motorists and the general public. Recently, the Ministry of Works and Transport revealed that this system is now fully functional in various locations throughout Metropolitan Kampala.
Since it was introduced, numerous drivers have expressed their grievances regarding its exploitative nature and its unexpected impact. Many individuals have already fallen victim to its penalties. Information obtained by this website indicates that an agreement was made between the Ugandan government and the Joint Stock Company Global Security concerning the Intelligent Transport Monitoring System (ITMS).
This agreement is set to span 10 years, with an estimated potential revenue of about USD 996,056,046.
“The Committee established that the Agreement on the Intelligent Transport Monitoring System (ITMS) between GoU and Joint Stock Company Global Security sets out, under Article 4, the conditions precedent to the Agreement’s effectiveness, among which was the Financial Model for the ITMS project.
The key assumptions of the Financial which the committee does not agree with include the following:
3.1 REVENUE GENERATION
OBSERVATIONS
The members observed the following issues concerning revenue generation.
a) The total revenue to be generated over the 10 year period is USD 996,056,046 broken down as follows; Revenue from fines USD 510,038,654.17 and Revenue from services- USD 486,017,392.21.
b) Revenue from fines of USD 510,038,654.17 is comprised of Speed Violations- USD 471,583,560.28, Stop line/ markings- USD 15,680,717.9, Turn not the sign- USD 13,067,264.92 and Fine on red lights violations of USD 9,707,111.08.”
The most surprising aspect of this agreement is that the private company will take home the majority share of the fines revenue, receiving 80% compared to the government’s 20%.
Nonetheless, this revenue-sharing arrangement does not fairly reflect the risks faced by the involved parties. The only risk the private firm confronts is a decline in revenues, which has been sufficiently managed in the assumptions to ensure a return. Conversely, the arrangement fails to consider the various risks borne by the government, including the public’s discontent and anger.
As a result, Ugandans have started to seek ways to oppose this initiative. Some are proposing to drive their vehicles at reduced speeds in the vicinity of Parliament, while others are calling for large-scale protests. It remains uncertain how the government will respond to the impending crisis that threatens to have a widespread impact on the country’s transport network and beyond.
