Forensic Audit Demanded for Shs3.49 Trillion Government Contingent Liabilities

The Public Accounts Committee (PAC) Central has demanded a comprehensive forensic audit into Uganda’s staggering Shs3.49 trillion in contingent liabilities. This call comes amid serious allegations of connivance and potential double recording and budgeting for numerous court cases involving the Ministry of Justice and other government bodies.

The committee, led by Chairperson Hon. Patrick Oshabe, expressed concern during a meeting with Ministry of Justice and Constitutional Affairs officials, including Permanent Secretary Robert Kasande. MPs questioned the dramatic rise in contingent liabilities, especially given that the Ministry of Justice is tasked with defending the government in legal disputes.

“How do you foresee losing cases to a loss that will come to us to a tune of Shs 3.4 trillion?” asked Kasese Municipality MP Hon. Ferigo Kambale, highlighting the magnitude of the potential financial obligation. He suggested that some cases might be lost due to collusion between government officials and claimants, necessitating greater oversight.

Permanent Secretary Kasande explained that the ministry’s role is defensive and that the majority of these liabilities originate from other government entities. He noted that the Attorney General’s chambers represent various ministries, departments, and agencies in court, and that successful defenses have previously saved the government over Shs4.4 trillion.

However, concerns about double-counting were raised, particularly for cases filed against institutions like the police or Parliament, which are initially handled by the Attorney General. “An effort needs to be done to ensure that there is no double recording,” stated Hon. Oshabe, indicating the Auditor General would likely be tasked with a special audit.

PAC Central has directed the Ministry of Justice to provide a detailed breakdown of all cases contributing to the Shs3.49 trillion liability. This includes identifying the entities involved, the current status of each case, and measures being implemented to prevent further financial losses. The committee also seeks clarification on whether any of these liabilities have been recorded or budgeted for multiple times across different government entities.

Source: Parliament of Uganda