Russian-Owned Digital Plates Company Fronted by Ugandans

Genevieve Nambalirwa, Africa One News |Business & Economy

Tuesday, July 15, 2025 at 11:52:00 AM UTC

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KAMPALA, Uganda — A Russian company awarded a controversial contract to supply Uganda with digital number plates is also registered under four Ugandan directors, documents from the Uganda Registration Services Bureau (URSB) reveal.

The firm, Joint Stock Company Global Security Ltd, is incorporated in both Russia and Uganda, where it operates under the name Virtus Global Security Company Ltd. The arrangement has sparked questions about transparency and ownership, especially as the company plays a central role in Uganda’s new Intelligent Transport Management System (ITMS).

URSB documents list Russian nationals Ivan Shkarban as a director and Dmitri Basangov as company secretary. However, in Uganda, Virtus Global Security is also registered to Ugandan directors, whose roles in the company remain unclear in recent filings.

The ITMS project is part of a broader 2018 directive from President Museveni aimed at curbing high-profile crimes such as assassinations through enhanced vehicle surveillance and digital tracking. The digital plates are intended to aid crime detection, vehicle identification, and improve revenue collection by the Uganda Revenue Authority.

Company filings show Virtus Global Security was incorporated on December 21, 2021. A company resolution from that day appointed Damir Makhutov as managing director, with a later board resolution authorizing him to operate bank accounts at EcoBank and Stanbic Bank.

A December 15, 2021 letter from Yunus Kakande, Permanent Secretary in the Office of the President, introduced the firm to the Inspector General of Police as the company selected to implement ITMS. Kakande also noted that Virtus required a recommendation from police to complete its registration with URSB.

On February 8, 2025, the firm amended its directorship to include both Makhutov and Shkarban. Earlier documents show that Shkarban and the Moscow-registered parent company were initial share subscribers.

The company has also faced backlash over its role in the Automatic Express Penalty Scheme (AutoEPS)—a new traffic enforcement system under ITMS that drew widespread criticism for lowering speed limits in urban areas to 30 km/h and issuing heavy fines via poorly signposted surveillance points.

Public outcry led to a temporary suspension of AutoEPS until July 12. However, that deadline passed without any update from the Ministry of Works. Reports suggest the company was relying on AutoEPS revenue to support other operations, including digital number plate production, which has faced delays and shortages.

Joint Stock Company Global Security signed a memorandum of understanding with the Ministries of Works and the Presidency in July 2021 to begin the project. The firm blamed delays on international sanctions targeting Russian entities, although some insiders attribute the setbacks to financial constraints.

In early July, High Court Judge Boniface Wamala ordered the government to release documents related to the ITMS contract within 60 days. The ruling followed a petition by civil society group Legal Brains Trust, which sought transparency over the deal.

Government lawyers had argued that disclosing the documents could infringe on investor privacy and national security. Justice Wamala rejected the claim, ruling there was no sufficient evidence to justify withholding the information.

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