parliament 4 September 2026 Parliament of Uganda
UETCL Faces Shs777 Billion Liability Amidst 136 Court Cases
The Uganda Electricity Transmission Company Limited (UETCL) is currently entangled in 136 court cases, posing a significant contingent liability of Shs777 billion. This situation has raised alarm bells among Members of Parliament regarding its potential strain on public finances and electricity service delivery. Source: https://www.parliament.go.ug/news/4602/uetcl-facing-136-court-cases-possible-shs777-billion-liability
The Uganda Electricity Transmission Company Limited (UETCL) is grappling with a daunting 136 ongoing court cases, collectively representing a potential financial exposure of Shs777 billion. This substantial contingent liability has become a major concern for Parliament, with legislators worried about the repercussions for public funds and the consistent delivery of electricity services across the nation.
During a meeting with the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), officials from UETCL presented the alarming figures. The committee, chaired by Hon. Muwada Nkunyingi, noted that many of these legal battles stem from preventable issues such as delayed payments to project-affected persons (PAPs), amounting to Shs22 billion, and outstanding dues for a substation in Tororo District, totaling Shs30 billion.
A significant portion of the liability, over Shs500 billion, is linked to a case initiated by Umeme Limited, which is being heard in a London court. MPs expressed particular concern over contractual agreements that permit dispute resolution outside of Uganda, questioning the oversight and approval processes for such clauses.
Further scrutiny revealed potential weaknesses in UETCL’s internal processes. The company’s contracts committee has reportedly failed to convene regularly, raising questions about the integrity of contract awards. The Auditor General’s report also pointed to possible collusion between some UETCL employees and contractors, possibly due to the leakage of confidential procurement information.
UETCL’s management attributed some of the legal challenges to PAPs rejecting compensation offers that adhere to government valuer guidelines. However, the CEO, Eng. Richard Matsiko, assured the committee that funds are available to compensate around 8,000 PAPs affected by the Karuma-Tororo transmission line and that payments would commence within six months for those who accept the offers.