The Uganda Revenue Authority has been ordered to pay Shs 1.66 billion in damages after a court found it unlawfully auctioned medical equipment worth Shs 1.46 billion for just Shs 4 million.
The equipment had been donated to Babaana Children of Uganda Ltd by donors in Switzerland to support improved access to modern health services in Uganda.
High Court Judge Justice Namanya ruled that URA’s disposal of the consignment was illegal and amounted to gross mismanagement of donated goods meant for public health.
The consignment comprised high-tech medical equipment including:
- Dental surgery equipment
- Rehabilitation hospital equipment
- Gynaecology practice equipment
The judge questioned how goods valued at Shs 1.46 billion were classified and sold as “worn clothes” for only Shs 4 million without any satisfactory explanation from URA officials.
“This was not a case of mistaken valuation. This was equipment donated for the health of Ugandan children, disposed of for a fraction of its value,” Justice Namanya stated.
According to court records, the medical equipment was shipped to Uganda as a donation to Babaana Children of Uganda Ltd, a nonprofit working to expand access to specialized care.
URA impounded and later auctioned the consignment. The authority reportedly categorized the items as miscellaneous/used goods, leading to the Shs 4m sale.
Babaana Children of Uganda Ltd sued URA, seeking compensation for the loss and disruption to its health programs.
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In its judgment, the court awarded Babaana Children of Uganda Ltd Shs 1.66 billion to cover the value of the equipment, damages, and costs.
The ruling has sparked fresh debate about URA’s handling of donated goods and the need for better valuation and clearance processes for humanitarian shipments.
URA officials had not issued a formal statement by press time.
