How car scam works
Jul 07, 2009
Details of how the fake number-plate scam is orchestrated have emerged.
By Steven Candia and Gladys Kalibbala
Details of how the fake number-plate scam is orchestrated have emerged.
An investigation by the Uganda Revenue Authority revealed the key players, the role of neighbouring countries and the complexity of the problem.
The authority said unscrupulous car importers, working with fraudsters, have exploited laxity in the DR Congo and Sudan, to cheat the Government of huge amounts of tax.
Sarah Banage, the head of corporate affairs, yesterday said the fraud involves the importer, the buyer, the neighbouring countries and the clearing agents.
The tax body said the fraud starts when a vehicle leaves a warehouse under the guise of being re-exported. The vehicle is then driven across to either Congo or Sudan, where it is given fake registration, then immediately brought back to Uganda.
Sometimes the car is driven out of the bond straight into the owner’s garage while the importer and the clearing agent acquire a duplicate number-plate.
“Unfortunately, they issue number-plates of vehicles of innocent people who had registered them after paying taxes,†Banage said.
Although the authority blames mainly the clearing agents and car importers, its officials have also been implicated and charged.
Muhumuza Collin Kashumba, the head of the central registry of motor-vehicles, was charged with falsifying registration numbers of 22 vehicles.
Muhumuza’s subordinate, Asiimwe Odur, was charged with seven counts of causing financial loss, seven counts of interfering with the customs computerised system and abuse of office.
Now the tax body advises importers to pay taxes to the bank and anyone buying a car must first verify the registration.
In a heightened clamp-down, the authority last week impounded over 60 vehicles, bringing the number to 400 said to have fake number-plates. A UPDF officer, Lt. Deus Katwesigye, was also arrested over the fraud. Katwesigye had a Toyota Surf bearing the number, UAK 024V, for a Toyota Corona Premio. The Premio is registered in the name of Duncan Bataaga of Kyadondo.
The officer, Banage said, also had a number-plate, UAK 138W, for a Toyota Corolla belonging to Wilber Mugisha of Bwetobo, Bushenyi.
According to Banage, Katwesigye is implicated in a series of car frauds. “Many investigations are leading to him as a key suspect in this scam,†she said.
Army spokesperson Maj. Felix Kulayigye said Katwesigye was attached to Gen. Elly Tumwine, and was not his ADC as earlier reported.
Kulayigye said action against Katwesigye would be taken only after getting communication from the authority. “To the best of my knowledge, they have not yet communicated to us,†he said yesterday.
As the hunt for the criminals intensifies, the Police in Entebbe on Monday impounded a passenger service omni-bus.
The sleek Toyota Hiace had an old number-plate, UAG 386G.
The registration plate is for a disused vehicle belonging to Christopher Ddamulira, the Police said. There were no records relating to the vehicle at the Central Registry, they added.
Details of how the fake number-plate scam is orchestrated have emerged.
An investigation by the Uganda Revenue Authority revealed the key players, the role of neighbouring countries and the complexity of the problem.
The authority said unscrupulous car importers, working with fraudsters, have exploited laxity in the DR Congo and Sudan, to cheat the Government of huge amounts of tax.
Sarah Banage, the head of corporate affairs, yesterday said the fraud involves the importer, the buyer, the neighbouring countries and the clearing agents.
The tax body said the fraud starts when a vehicle leaves a warehouse under the guise of being re-exported. The vehicle is then driven across to either Congo or Sudan, where it is given fake registration, then immediately brought back to Uganda.
Sometimes the car is driven out of the bond straight into the owner’s garage while the importer and the clearing agent acquire a duplicate number-plate.
“Unfortunately, they issue number-plates of vehicles of innocent people who had registered them after paying taxes,†Banage said.
Although the authority blames mainly the clearing agents and car importers, its officials have also been implicated and charged.
Muhumuza Collin Kashumba, the head of the central registry of motor-vehicles, was charged with falsifying registration numbers of 22 vehicles.
Muhumuza’s subordinate, Asiimwe Odur, was charged with seven counts of causing financial loss, seven counts of interfering with the customs computerised system and abuse of office.
Now the tax body advises importers to pay taxes to the bank and anyone buying a car must first verify the registration.
In a heightened clamp-down, the authority last week impounded over 60 vehicles, bringing the number to 400 said to have fake number-plates. A UPDF officer, Lt. Deus Katwesigye, was also arrested over the fraud. Katwesigye had a Toyota Surf bearing the number, UAK 024V, for a Toyota Corona Premio. The Premio is registered in the name of Duncan Bataaga of Kyadondo.
The officer, Banage said, also had a number-plate, UAK 138W, for a Toyota Corolla belonging to Wilber Mugisha of Bwetobo, Bushenyi.
According to Banage, Katwesigye is implicated in a series of car frauds. “Many investigations are leading to him as a key suspect in this scam,†she said.
Army spokesperson Maj. Felix Kulayigye said Katwesigye was attached to Gen. Elly Tumwine, and was not his ADC as earlier reported.
Kulayigye said action against Katwesigye would be taken only after getting communication from the authority. “To the best of my knowledge, they have not yet communicated to us,†he said yesterday.
As the hunt for the criminals intensifies, the Police in Entebbe on Monday impounded a passenger service omni-bus.
The sleek Toyota Hiace had an old number-plate, UAG 386G.
The registration plate is for a disused vehicle belonging to Christopher Ddamulira, the Police said. There were no records relating to the vehicle at the Central Registry, they added.