Legal Implications Of Coronavirus (COVID-19)

As the country grapples with the coronavirus (COVID-19), various directives are being issued by different authorities. It is incumbent on the authorities that the measures are issued within the law. Enterprises that endeavour to observe these measures or wish to take their own measures also need to ensure that their actions are within the law. There are many legal issues to bear in mind. We set out key issues below.

The Public Health Act (Cap. 281)

Under this Act, the Minister of Health is empowered to take measures to combat the spread of an infectious disease. So far, four statutory instruments have been published to implement various measures announced by Presidential Directive over the last few days. These statutory instruments have been detailed in separate ENSight available here.

The Public Health Act offers an old but fairly robust legal framework for government to implement the announced measures to combat the spread of COVID-19 in Uganda.

Local government authorities are empowered to enforce such regulations and may make their own.

The Judiciary

On 19 March 2020, the Chief Justice, referencing Presidential Directives, issued guidelines suspending court hearings for 32 days from 20 March 2020. Filing of written submissions is permitted. Where possible, judgments and rulings may be issued to parties online or via email. Execution proceedings were suspended, save where attachment had taken place.

Urgent civil matters may be heard upon application to court. Taking of plea in serious matters and bail applications may also be heard. Only the applicant and his or her lawyer, or in the case of bail application, the sureties, will be allowed in court.

Judicial officers and staff will continue to be on duty, but no open court appearances will take place.

The guidelines are silent on observance of time limits for filing of process and it is assumed that the time limits will therefore continue to apply. However we expect that where a time limit is missed, an application to set aside any consequent action and permit late filing will readily be allowed when courts resume.

Financial obligations to lenders

On 20 March 2020, the Bank of Uganda announced that it would:

intervene in the foreign exchange market to minimise volatility from global financial markets; provide exceptional liquidity assistance for up to one year for financial institutions, supervised by the Bank of Uganda, who may require it; waive limitations on the restructuring of credit facilities at financial institutions that may be at risk of going into distress due to the pandemic; and engage mobile network operators and commercial banks to reduce fees on mobile money transactions and other digital payments, and to increase daily transaction amounts for mobile money transactions. Borrowing arrangements should be reviewed and discussions with lenders initiated as necessary. Business should have a strategy and plan as to tide over during this period.

Various clauses in financing agreements should be studied and their implications understood during this period...