High Court in Jinja today orders all bank accounts for Iganga district local council frozen for failure to pay Shs1.6bn to its former employees who were illegally terminated in early 2000.
High Court in Jinja had issued an April 16th 2015 ultimatum to Iganga district to clear the debt. However, the district local government was unable to beat the deadline.
At least 94 former parish chiefs in Iganga district dragged their former employer to court in 2005 for wrong dismissal. Court ruled in their favour in 2011 and ordered the district to pay Shs1.6bn of which Shs600m would be legal expenses.
The district since then has been remitting Shs100m every financial year but the former parish chiefs complained to court about the delay.
District Chairperson Shaban Nkuntu told Eagle that court’s action will affect service delivery.