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Taxpayers Risk Losing Shs531bn In ‘Unnecessary’ Court Cases

Ugandan taxpayers risk losing Shs531.4bn in ongoing court cases by a number of government agencies, the 2018 Audit report by the Auditor General, John Muwanga has revealed. The outcome of these cases is still uncertain

The agencies whose contingent liability has been outstanding for over 2 years include Kampala Capital City Authority (KCCA), Uganda National Roads Authority (UNRA) and National Social Security Fund (NSSF) and National Agricultural Advisory Services (NAADS) among others.

Muwanga warned that the eventual determination and/or payment of these legal costs could negatively affect the cash flows and ability of the concerned entities to continue operating well.

He cautioned Management of these entities to always ensure due diligence in carrying out their work to safeguard against litigation and consequential unfavourable outcomes.

In the breakdown, National Agricultural Advisory Services (NAADS) has fifteen pending court cases with Shs18bn in legal costs while the estimated costs for outstanding court cases for the Kampala Sanitation Program (KSP) that is being managed by National Water and Sewerage Corporation is Shs1.39bn.

The biggest pending legal bill has been accrued by UNRA, with a projection of Shs430bn in contingent liabilities.

additionally, the impending legal suits on disputed compensation offers/claims for KCCA  is Shs39.8bn, while National Social Security Fund (NSSF) has one pending case in Tax dispute with URA, leaving the entity with legal costs amounting to Shs42.2bn.

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