Medical Equipment Auction: URA Offered Shs2.8bn, Client Demanded Shs22bn but Won Only Shs1.66bn

What the report says

Nile Post reports that Babaana Children of Uganda Ltd, a charity that challenged the Uganda Revenue Authority over the auction of donated medical equipment, has been awarded Shs1.66 billion plus interest by the High Court in Kampala. The charity had sought Shs22 billion after rejecting what URA said was an earlier settlement offer that rose from Shs2.5 billion to Shs2.8 billion.

The dispute concerned medical equipment donated from Switzerland for a children’s health facility. According to the report, the items included dental, rehabilitation and gynaecology equipment and had been confirmed as tax exempt in 2017. The consignment was placed in a bonded warehouse while the charity completed construction of the intended facility, but when the organisation later tried to clear it, the goods had already been auctioned.

Justice Bernard Namanya found that URA did not follow required customs procedures, including proving that a legally required one-month notice had been issued before the sale. The court awarded Shs1.46 billion as the value of the medical equipment and Shs200 million in general damages, with interest including 6% per year on the Shs1.46 billion from 2018 until payment. Nile Post says court records indicated equipment valued at about Shs1.46 billion was sold for only Shs4 million.

URA spokesperson Robert Kalumba told Nile Post the authority had acknowledged mistakes, investigated the matter and that staff involved in the auction left the institution. He said URA would comply with the judgment. The case highlights the financial and public-service risks that can arise when donated health equipment is delayed or mishandled in customs storage.