Kampala: The Public Accounts Committee (Central) has urged a forensic audit into the government's Shs3.49 trillion contingent liabilities amidst accusations of potential connivance and possible double recording and budgeting of the same court cases by the Ministry of Justice and other government entities.
According to African Press Organization, the committee's request was made during a meeting chaired by Hon. Patrick Oshabe, which included officials from the Ministry of Justice and Constitutional Affairs, led by Permanent Secretary Robert Kasande. The officials were summoned to address a query raised by the Auditor General regarding the significant sum of contingent liabilities.
Committee members expressed concern over the marked increase in contingent liabilities, despite the Ministry of Justice having a team of lawyers tasked with defending the government in court. Contingent liabilities are potential financial obligations that arise from past lawsuits, disputes, or investigations where the final cost and outcome depend on uncertain future events.
Kasese Municipality MP, Hon. Ferigo Kambale, highlighted alleged connivance between government officials and claimants as a reason for some court losses, emphasizing the need for stricter scrutiny of case handling. He questioned the ministry's ability to face such substantial potential liabilities despite its mandate.
Permanent Secretary Kasande defended the ministry by stating that court outcomes are not determined by the ministry and explained that most liabilities stem from cases involving other government entities. He noted that while their role is to defend the government in court, successful legal defenses have resulted in savings of over Shs4.4 trillion for the government.
Kasande further explained that the majority of the liabilities originate from other ministries, departments, and agencies, which the Attorney General's chambers represent in court. He outlined that these liabilities include cases in domestic courts, international arbitration, the East African Court of Justice, and other regional jurisdictions.
Hon. Oshabe raised concerns about the potential for double-counting of contingent liabilities, given that cases against institutions like the police, Parliament, and the Electoral Commission are initially filed against the Attorney General. He suggested that a special audit by the Auditor General might be necessary to resolve this issue and prevent double recording.
The committee has instructed the ministry to provide a comprehensive schedule of all cases contributing to the Shs3.49 trillion exposure, detailing the entities involved, the status of each case, and measures being implemented to avert further losses. Additionally, the committee seeks clarification on whether any liabilities have been recorded or budgeted for more than once by the Ministry of Justice and other government entities.