Unpaid court awards and compensations owed by the government have risen to Ugx. 676.8 billion in the last financial year, according to the latest Auditor General’s report.
The auditor general, John Muwanga, notes that delays by the government to pay claimants have resulted in interest amounting to Ugx. 168bn being charged on the national purse as penalty fees.
“The outstanding amount in court awards and compensations had been accumulating over the last five financial years from Ugx. 54.0bn in 2011/2012 to Ugx. 676.8bn in 2016/17,” the report noted.
Government has in recent times paid Ugx. 2.7bn for delayed settlements of obligations arising from contracts for construction services and court awards, the audit also reports. This expenditure, the auditor general said, is considered wasteful as it could have been avoided had these been settled in time.