Former UEDCL bosses seek billions as Solicitor General warns of wrongful dismissal liability

What the report says

Uganda Electricity Distribution Company Limited (UEDCL) is facing the prospect of a large compensation bill after former managing director Paul Mwesigwa demanded payment over what he says was constructive and wrongful dismissal. His claim is being filed alongside separate Industrial Court cases brought by seven other former senior managers who were also removed during the utility’s leadership shake-up.

According to Watchdog Uganda, Solicitor General Perry Biribonwoha advised the Energy Ministry that the manner in which Mwesigwa was sent on leave in May 2026 could be interpreted by a court as a termination of his contract. The legal opinion said the company’s steps, including naming an acting managing director, publicly announcing the changes, conducting a handover and denying Mwesigwa access to company premises, may weaken UEDCL’s position. The Solicitor General reportedly urged a negotiated settlement, while describing some of the compensation claims as excessive.

Mwesigwa’s lawyers are seeking payment for lost earnings, a possible contract renewal period, notice-related sums and allowances, along with substantial damages. The former managers say their removals were not handled through a formal disciplinary process. UEDCL has not publicly answered the compensation demands.

The dispute comes as UEDCL tries to stabilize power supply and fund major grid upgrades after taking over the national distribution network from Umeme in 2025. The company is under pressure over outages, aging equipment and slow service improvements, making any court loss potentially costly for a utility already facing financial and operational strain.