Gen Katumba hits back in fight over driving permits

The fight to control Uganda’s computerised driving permit system has taken yet another twist with the Works ministry coming out to strongly defend the contractor and warning of dire consequences, including the inability to issue or renew permits, if South Africa’s Face Technologies (Pty) Ltd is, kicked out.

In a 14-page letter seen by this newspaper, the State minister for Works, Gen Katumba Wamala, expresses “discomfort” with letters written by officials at the Finance ministry, which he says make “unsubstantiated allegations” which are in “bad faith and biased”.
The letters referenced were written by Finance minister Matia Kasaija on September 25 and an earlier one by the Permanent Secretary and Secretary to Treasury Keith Muhakanizi.

The Finance ministry officials had demanded for a transitional plan for the government takeover of the project and accountability for funds generated, citing allegations by a whistleblower of impropriety including collusion and profit repatriation.

“While it is okay to address whistleblower’s reports, it’s important to do so in a manner that is respectful of mandates and is devoid of unsupported allegations which serve to affect investor confidence and negatively affects the morale of the ministry, thus reversing the gains achieved,” Gen Wamala wrote in a letter seen by this newspaper.
He added: “As the lead agency, we advise that in future, courtesy is extended through consultation and clarifications before making unnecessary allegations.”

Face Technologies (Pty), a South African firm, has been producing the driving permits since 2003 but its contract, which has been extended previously, will run out in May 2020.
The Works ministry initially announced plans to take over the project, but citing lack of capacity, proposed to give the company a new contract to help manage the transition.

Parliament weighed in and passed a resolution last month directing government to extend the transitional arrangements with Face Technologies for five years to avoid creating a crisis.
Subsequently, the Works Ministry, whose top management agreed with the Parliamentary resolution, wrote to the Attorney General seeking legal advice which is yet to be provided and which, Gen Wamala says, is frustrating efforts to resolve the impasse.
He explains that AG’s failure is undermining President Museveni’s directives to the ministry to streamline the taxi industry and a host of related security contracts.

Gen Wamala warns of a reduction in revenue if a transition from the South African agency to government is “poorly” managed.
“This facility is the most efficient in the country and provides a first-class service to citizens,” he says, adding that “driving permits are issued in an hour, there are no cases of forgeries/ brokers and has collected revenue for the government.”
The letter says annual non-tax revenue generated as a result of the company’s activities rose from Shs12.3 billion in financial year 2009/2010 to Shs41.4b in financial year 2018/2019 and is projected to increase to Shs60b by 2023/2024.
Gen Wamala says disruptions will affect the collections negatively.

Interested parties
A move by another company, the Uganda Security Printing Company (USPC), to take over the contract has also contributed to the impasse.
The company is a joint venture between Uganda Printing and Publishing Corporation, Ministry of Finance, Office of the President and a consortium of Veridos GmbH and Giesecke & Devrient Gmbh.
Gen Wamala writes that his ministry has been engaging the joint venture to provide security features for driving permit cards in line with its agreement with other government agencies. USPC, however, switched position and instead demanded to take over the entire project.

“However, the company submitted a proposal to supply a new driving system to the ministry and claims it’s pursuant to the joint venture agreement,” Gen Wamala wrote.
“This is likely to cause an impasse because the ministry has an efficient functional driving permit system and disrupting it as indicated above will have huge financial and legal implications. The question therefore is, if the system is not broken down, why should it be fixed?”
He further warns of a risk of government having to recall more than 900,000 drivers’ licences issued by Face Technologies, and an increase in the cost of the permit due to disruptions or changes in the current system.

Attorney General William Byaruhanga last week declined to comment on the matter and referred this newspaper to his deputy.
Deputy Attorney General Mwesigwa Rukutana, who supported the extension during debate in Parliament, said consultations were still ongoing.
If agreement is not reached Face Technologies could walk away with the software and intellectual property generated by the project. This would leave government unable to verify about a million driving permits, renew or issue new permits based on the existing database.

Background. Face Technologies (Pty), a South African firm, has been producing the driving permits since 2003 but its contract, which has been extended previously, will run out in May 2020.
The Works Ministry initially announced plans to take over the project, but citing lack of capacity, proposed to give the company a new contract to help manage the transition.

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