IGG v Gordon Sentiba & 3 Ors (Misc. Appl. No. 65 of 2007) (Misc. Appl. No. 65 of 2007)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court held that the Inspectorate of Government has locus standi to apply for review of a consent judgment where it alleges corruption and potential future loss to Government, as it is not barred by section 19 of the Inspectorate of Government Act from moving court to review its own decision. The court found the Inspectorate is independent of the Attorney General and can pursue matters independently. Preliminary objections challenging the application's competence were dismissed.
Outcome
Preliminary objections dismissed; matter to proceed to substantive hearing
Facts
Nyanza Textiles Industries Limited (NYTIL) was nationalised by Government in 1973, with 1% shares held by non-government shareholders. In 1995, NYTIL was privatised to Picfare Industries for US$10 million, including US$3 million for non-government shareholders secured by a redeemable preference share guaranteed by National Insurance Corporation. Picfare went into receivership before completing payment. Government later wrote off the unpaid purchase price for UGX 1000 without collecting from the guarantor, leaving non-government shareholders unpaid. Gordon Sentiba and others filed a representative suit (HCCS No. 431 of 2006) seeking compensation. After the Attorney General's Chambers convened a stakeholder meeting to discuss settlement, a consent judgment was entered on 29 December 2006 without approval from the Ministry of Finance. The Minister of Finance complained to the Inspectorate of Government, which then applied to review and set aside the consent judgment on grounds that the first respondents did not represent all entitled shareholders and that irregularities would cause irreparable loss to Government.
Issues
- Whether section 19(1)(a) and (c) of the Inspectorate of Government Act bars the Inspectorate from moving court to review a consent judgment.
- Whether the Inspectorate of Government has locus standi to apply for review of a consent judgment to which it is not a party.
- Whether the Inspectorate can pursue matters independent of the Attorney General despite Article 119 of the Constitution.
- Whether the affidavits supporting the application are fatally defective.
Orders
- Preliminary objections to the application overruled.
- Substantive application to be heard and decided on its own merits.
- Costs of the preliminary objection awarded to the applicant.
Rules and key headnotes
Legislation cited (23)
- Inspectorate of Government Act No. 5 of 2002 s.19(1)(a)
- Inspectorate of Government Act No. 5 of 2002 s.19(1)(c)
- Inspectorate of Government Act No. 5 of 2002 s.8
- Inspectorate of Government Act No. 5 of 2002 s.9
- Inspectorate of Government Act No. 5 of 2002 s.10
- Government Proceedings Act Cap. 77 s.10
- Oaths Act Cap. 19 s.6
- Evidence Act Cap. 6 s.101
- Evidence Act Cap. 6 s.102
- Evidence Act Cap. 6 s.103
- Constitution of Uganda 1995 Article 119
- Constitution of Uganda 1995 Article 119(3)
- Constitution of Uganda 1995 Article 119(4)
- Constitution of Uganda 1995 Article 126(2)(e)
- Constitution of Uganda 1995 Article 225
- Constitution of Uganda 1995 Article 226
- Constitution of Uganda 1995 Article 227
- Constitution of Uganda 1995 Chapter 13
- Civil Procedure Rules Order 9 Rule 12
- Civil Procedure Rules Order 46 Rule 1
- Civil Procedure Rules Order 46 Rule 2
- Civil Procedure Rules Order 50
- Civil Procedure Act s.82
Cases cited (10)
- Inspector General of Government v Kikonda Butema Farm Ltd and Attorney General (Constitutional Application No. 13 of 2006)
- Kabagambe Asol & 2 Others v Electoral Commission & Dr. Kiiza Besigye (Constitutional Petition No. 1 of 2006)
- Bank of Uganda v Banco Arabe Espanol (Civil Appeal No. 1 of 2001)
- Ladak Abdullah Mohamed Hussein versus Griffiths Isingoma Kakiiza & 2 others
- Ladak Abdulla Mohamed Hussein v Griffiths Isingoma Kakiiza & 2 Others (Civil Appeal No. 8 of 1995)
- Mbogo v Shah [1968] EA 93
- Jacques v Harrison (1883-4) 12 AC 165
- Employers Liability Assurance Corporation Ltd v Sedgwick Collins and Company Ltd [1927] AC 95
- Yusuf v Nokrach [1971] EA 104
- In Re Nakivubo Chemists (U) Ltd [1971] HCB 12
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.