The Uganda Revenue Authority (URA) has defended itself over one of the country’s most controversial disposal scandals after a court ordered the tax body to pay Shs1.66 billion in compensation for unlawfully auctioning medical equipment worth Shs1.46 billion for just Shs4 million.

The equipment, which belonged to Babaana Children of Uganda Ltd, had been donated by well-wishers in Switzerland to improve access to modern healthcare services in Uganda.
Responding to renewed public criticism, URA spokesperson Robert Kalumba said the authority had already dealt with those responsible.”Those responsible were dismissed when the issue came to light some years back,” Kalumba said.
His statement comes as the case has resurfaced in public debate, with many Ugandans questioning how life-saving medical equipment ended up being auctioned as ordinary second-hand clothes.
Equipment Meant for Sick Children
According to court records, the consignment consisted of sophisticated hospital equipment donated by individuals in Switzerland to Babaana Children of Uganda Ltd.

The shipment included high-tech dental surgery equipment, rehabilitation hospital equipment and gynaecology practice equipment, all intended to strengthen healthcare services for vulnerable children and communities across Uganda.
Instead of reaching the intended beneficiaries, the equipment ended up in the hands of URA officials, who disposed of it through a public auction.
Sold for Shs4 Million
The scandal shocked many after it emerged that equipment valued at Shs1.46 billion was reportedly auctioned for only Shs4 million after being classified as worn clothes.
In her judgment, Justice Namanya questioned how highly specialised medical equipment could have been described as second-hand clothing without any satisfactory explanation.
The judge observed that there was no credible justification for disposing of equipment worth over Shs1.4 billion at such a negligible price, ultimately ordering URA to compensate Babaana Children of Uganda Ltd with Shs1.66 billion.
The ruling was widely viewed as a strong rebuke of the authority’s handling of the consignment.
URA Says Officers Were Fired
As public criticism mounted again this week, Kalumba said URA had long taken disciplinary action against those responsible.”Those responsible were dismissed when the issue came to light some years back,” he said.

Although he did not identify the officers involved, Kalumba maintained that the authority acted decisively after internal investigations established wrongdoing.His remarks are intended to reassure the public that the officials linked to the controversial auction are no longer employed by URA.
Questions Refuse to Go Away
Despite the dismissals, many Ugandans continue to question how expensive and specialised medical equipment could have been mistaken for worn clothing during the auction process.

Governance experts say the case exposed serious weaknesses in inventory management, verification procedures and oversight within the disposal system.For many observers, the scandal remains one of the most glaring examples of alleged negligence involving humanitarian donations.
The renewed attention has also revived calls for stronger safeguards to ensure donated medical supplies intended for hospitals and charitable organisations are protected from unlawful disposal.
Demand for Accountability
The court ruling and URA’s latest response have reignited demands for greater transparency in the management of seized and imported goods.
Many believe the dismissal of officers was an important disciplinary step but argue that the public still deserves a full explanation of how sophisticated hospital equipment ended up being auctioned for a fraction of its value.
As questions continue to mount, the Babaana Children of Uganda case remains a powerful reminder of the importance of accountability in public institutions and the devastating consequences that administrative failures can have on healthcare delivery and vulnerable communities.
Author Profile

- Charles Gazza Kodili is a seasoned journalist with over 20 years of experience in the media industry. He holds a Bachelor of Arts degree in Mass Communication. He’s currently the Chief Editor at the Investigator.
Charles can also be reached via; Tel: +256 774 108978
Email: [email protected]
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