More cars seized for fake number-plates

Jul 07, 2009

About 60 more vehicles have been impounded by the Uganda Revenue Authority in the on-going investigation into the registration scam.

By Steven Candia

About 60 more vehicles have been impounded by the Uganda Revenue Authority in the on-going investigation into the registration scam.

This brings to 400 the number of vehicles seized for bearing fake number-plates, according to sources who also added that most the vehicles were yet to be located
and impounded.

In some cases, the owners have paid up the taxes so as to avoid forfeiting the cars to the State as required by law, the tax body said in a statement yesterday.

A key suspect, Lt. Katwesigye Mugashu, was also arrested last evening from Boston car-washing Bay and Restaurant on Buganda Road, opposite Kampala Central Police Station.

Mugashu was driving a Toyota Surf vehicle with fake registration number plates, said the statement, which was signed by Sarah Banage, the assistant head of public and corporate affairs.

Mugashu has two fake number-plates for the vehicle, Banage explained.

The 60 vehicles, which were impounded last week, were by yesterday still parked at the tax body’s head offices in Nakawa, Kampala.

Banage said the revenue authority had stepped up investigations and surveillance of vehicles with fake registration.

So far, 11 suspects were last month charged with fraudulently issuing car number-plates. Among them are two revenue officers, a Kampala lawyer and three directors of Arnold Brooklyn, the company which issues number-plates in Uganda.

The suspects, who also include clearing agents and a computer technician, are believed to be part of a sophisticated racket which helps importers of new vehicles to evade taxes.

The fraud involves forging bank payment forms for car number-plates, including personalised ones, for expensive cars such as Land Cruisers and Mercedes Benz.

The racket is said to have existed for about two years. Taxes for cars older than eight years amount to 73% of the cost, freight and insurance (CIF), whereas cars newer than that, attract 53% tax.

Sources said the tax body had written to Arnold Brooklyn and GM Tumpeco, which also manufactures vehicle registration-plates, to protest the scam.

Two directors of the Arnold Brooklyn, Mr and Mrs. Harishi and Smita Bhutani, are out of the country, their lawyer, Deo Nkunzingoma, said. The Nakawa Court has, however, issued criminal summons for them to appear on July 17. The third director, who lives in Uganda, Robert Bariho, denied the charges on June 19 and was released on bail.

Others arraigned were Kamara Abu Kibenge, alias Eddy, Ronnie Hakiiza, alias Abby Kiiza Bakiiza Ronald, described as a computer technician, Katusabe Acleo and Dominic Omier.

URA official, Muhumuza Collin Kashumba, who headed the central registry of motor-vehicles at Nakawa, was charged with falsifying registration numbers for 22 vehicles, including eight Mercedes Benz and a BMW.

His subordinate, Asiimwe Odur, and others still at large are charged with seven counts of causing financial loss, seven counts of interfering with the customs computerised system and abuse of office.

Meanwhile, the revenue authority also regretted that some people had opposed the clampdown and were discrediting the effort to counter fraud. It blamed smugglers, dismissed URA staff and former anti-smuggling chiefs.

URA yesterday advised the public to adhere to procedures at the licensing office in order to avoid inconveniences, especially when buying cars which are already on the road.

“The public should cross check with the URA prior to purchase of a motor-vehicle and ensure that a thorough search on the authenticity of registration and tax payment status is ascertained prior to its change of ownership.”

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