Uganda Electricity Transmission Company facing 136 court cases with possible USD 206 million liability
The Uganda Electricity Transmission Company Limited is weighed down by 136 court cases.
The legal suits come with a contingent liability of Ugandan shillings 777 billion equivalent to US$ 206 million, raising concern among Members of Parliament over the potential impact on public finances and electricity service delivery.
Most of the cases accrue from delayed payment of project affected persons totaling to Shs 22 billion and another shs 30 billion Uganda Electricity Transmission Company Limited (UETCL) owes to a substation in Tororo District.
The Ugandan legislators also learnt that over Shs 500 billion relates to a case filed by Umeme Limited which is currently before a court in London.
This matter emerged during a meeting of the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE)as they met officials from UETCL over queries in the Auditor General’s report for the financial year 2024/2025.
The meeting was held on Thursday, 03 September 2026.
The committee chaired by legislator Muwada Nkunyingi observed that many of the disputes resulted from preventable weaknesses in land acquisition, compensation, contract administration and project management.
He questioned the effectiveness of UETCL’s procurement structures citing information that the company’s contracts committee had failed to convene regularly because some representatives did not attend meetings while another member was away on study leave.
“We asked who was giving out the contracts and whether one person sat and decided who should be awarded a contract,” Nkunyingi said.
He added that the Auditor General’s review of selected contracts pointed to possible collusion involving some UETCL employees and contractors derived from alleged leakage of confidential procurement information.
Nkunyingi questioned contractual provisions requiring some disputes to be resolved outside Uganda saying the committee intends to examine the agreements and establish how the clauses were approved.
“We observed that there are agreements which do not require matters to be settled in our courts of law. Some cases have to be settled outside the country. We want to look into all the contracts and find out how they were reached,” he said.
The Budadiri East County Member of Parliament, Julius Nakiyi questioned why UETCL’s legal department had reportedly failed to advise management against decisions that exposed the company to costly litigation.
“We need to know clearly what went wrong, the challenges you face and how project management can be improved,” Nakiyi said.
The Uganda Electricity Transmission Company Limited’s Company Secretary, Stella Ladona explained that some of the court cases accumulate when project-affected persons (PAPs) reject compensation amounts determined in accordance with the Chief Government Valuer’s guidelines.
On his part, the UETCL Chief Executive Officer, Engineer Richard Matsiko said the company had received sufficient funds to compensate approximately 8,000 PAPs affected by the 400 KV Karuma–Tororo transmission line.
“We have our field officers on the ground conducting valuation and assessment. Within six months, those who accept the compensation offers will be paid,” Matsiko said.
Public Accounts Committee calls for forensic audit of Shs3.49 trillion contingent liabilities
Meanwhile, the Public Accounts Committee (Central) has called for a forensic audit of government’s Shs3.49 trillion contingent liabilities following allegations of connivance, as well as possible double recording and budgeting for the same court cases by the Ministry of Justice and other government entities.
The call was made as the committee chaired by Patrick Oshabe met officials from the Ministry of Justice and Constitutional Affairs led by the Permanent Secretary, Robert Kasande on Thursday, 03 September 2026.
The officials appeared to respond to a query by the Auditor General on the Shs3.49 trillion contingent liabilities.
The committee members questioned the sharp increase in contingent liabilities despite the Ministry of Justice having a number of lawyers mandated to defend government in court.
A contingent liability is a potential financial obligation arising from a past lawsuit, dispute, or investigation where the final cost and outcome depend on an uncertain future event.
Kasese Municipality MP, Ferigo Kambale submitted that some court cases involving government are lost through alleged connivance between government officials and claimants, calling for greater scrutiny of how the cases are handled.
Kambale wondered why a ministry responsible for defending government in court is facing potential liabilities of such magnitude.
“How do you foresee losing cases to a loss that will come to us to a tune of Shs 3.4 trillion?” he asked demanding a list of the cases behind the figure.
However, Permanent Secretary Kasande said the ministry does not determine court outcomes and explained that most of the liabilities arise from cases involving other government entities.
Kasande said the ministry’s role is to defend government in court and noted that successful legal defence had saved government more than Shs4.4 trillion.
Kasande added that the majority of the liabilities originated from other ministries, departments and agencies, which the Attorney General’s chambers represent in court.
“99 per cent of these liabilities come from other ministries, departments and agencies. Our role is to go to court and defend government,” he said.
He stated some of the liabilities included cases before domestic courts, international arbitration, the East African Court of Justice and other regional jurisdictions.
Oshabe wondered whether contingent liabilities were not being double counted because cases against institutions such as police, Parliament and the Electoral Commission are initially filed against the Attorney General.
“An effort needs to be done to ensure that there is no double recording. I think the Auditor General will be required to do a special audit on these contingent liabilities. We will see how to make a recommendation about that,” he added.
Oshabe directed the ministry to provide a detailed schedule of all cases making up the Shs3.49 trillion exposure, including the entities involved, the status of each case and measures being taken to prevent further losses.
The committee also wants the ministry to clarify whether any of the liabilities have been recorded or budgeted for more than once by the Ministry of Justice and other government entities.