UETCL faces 136 court cases with Shs777bn in potential liabilities

The Uganda Electricity Transmission Company Limited (UETCL) is facing 136 court cases with a combined contingent liability of approximately Shs777 billion (roughly USD 206 million). The legal challenges were highlighted during a meeting of the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) following the Auditor General’s report for the 2024/2025 financial year.

A major portion of the liability, exceeding Shs500 billion, stems from a legal dispute with Umeme Limited currently being heard in a London court. Other significant liabilities include Shs22 billion in outstanding compensation to project-affected persons and Shs30 billion related to a substation in the Tororo District.

Legislators have raised concerns regarding UETCL’s management of land acquisition, procurement, and contract administration. Specifically, the committee questioned the effectiveness of procurement structures and noted potential weaknesses that may have led to disputes. UETCL Company Secretary Stella Ladona noted that some disputes arise when individuals reject compensation offers based on official government valuations.