UETCL grappling with 136 court cases with possible Shs 777bln liability

KAMPALA, September 4, 2026 — The Uganda Electricity Transmission Company Limited [ UETCL ] is grappling with 136 court cases carrying a potential liability of Shs 777 billion, raising concern among Members of Parliament over the possible impact on public finances and electricity service delivery.

Most of the cases arise from delayed compensation payments to project-affected persons (PAPs), amounting to Shs 22 billion, while another Shs 30 billion relates to money UETCL owes for a substation in Tororo district.

MPs also learnt that more than Shs 500 billion relates to a case filed by Umeme Limited, which is currently before a court in London.

The matter emerged during a meeting of the Committee on Commissions, Statutory Authorities and State Enterprises [COSASE], which was scrutinising queries raised in the Auditor General’s report for the financial year 2024/2025.

The meeting was held on Thursday.

The committee, chaired by Muwada Nkunyingi, observed that many of the disputes resulted from preventable weaknesses in land acquisition, compensation, contract administration and project management.

Nkunyingi 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 had pointed to possible collusion involving some UETCL employees and contractors, arising from alleged leakage of confidential procurement information.

Nkunyingi also questioned contractual provisions requiring some disputes to be resolved outside Uganda, saying the committee would examine the agreements to 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.

Budadiri East County MP 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.

UETCL Company Secretary Stella Ladona explained that some of the court cases arise when project-affected persons reject compensation amounts determined in accordance with the Chief Government Valuer’s guidelines.

UETCL Chief Executive Officer Eng. Richard Matsiko said the company had received sufficient funds to compensate approximately 8,000 PAPs affected by the 400kV 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.

https://thecooperator.news/uedcl-to-spend-over-shs-40-billion-in-nine-months-after-umeme-exit/

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