The government of Uganda has agreed to pay, on behalf of South Sudan, a 41-million-dollar debt to Ugandan companies.

The Ugandan traders supplied goods and services to the government of South Sudan but were not paid due to outbreak of conflict in December 2013.

Before the conflict erupted,  the group of 24 Ugandan companies under their umbrella organization; Uganda South Sudan Grain Traders and Suppliers Association have lodged a case at the Commercial Division of the High Court, seeking for a declaration that the refusal of the South Sudan government to pay them as per the Memorandum of Understanding with Uganda is unlawful.

However, 2 years ago, South Sudan entered into a mutual agreement with the Ugandan government to pay the debts owed to the 22 companies, which amounts to around $45 million.

According to the NTV, this followed an agreement between the government of Uganda and South Sudan, with Juba reportedly agreeing to pay it back after the country stabilizes.

However, the Ugandan Parliamentary committee said some of the companies were irregularly added to the South Sudan bailout list and do not deserve to be paid.

“20 companies have been verified as genuine to be paid the money,” David Bahati, Uganda’s state minister of planning said.