The ministry of justice and constitutional affairs is proposing tougher measures which will see the public officials personally liable for faults that lead to hefty court awards.
The ministry has also recommended that expenditures that result in court awards and out of court settlements be deducted from budgets of government departments that are responsible.
The acting director for civil litigation in the Attorney General's office, Henry Oluka disclosed that the amount in arrears from compensations, claims and awards has reached over sh500b.
He also revealed that cases instituted by the private sector constitute more than 98% of all civil suits handled by the Attorney Generals Chambers.
He was presenting a paper at a workshop to sensitise government officials on management of contracts and legal proceedings against the government in Kampala.
He accused some ministries, districts and other Government institutions of failing to submit information about the cases to the AG, leading to loss of such cases.
"Many times when we request for documents about the cases, majority of Government departments do not bother to respond," he said.
He also accused some offices of refusing to comply with the legal opinion provided by the AG on some cases, warning that such officials would face the law.
The awards of money by courts against Government have been increasing since the early 1990s, raising concern for the Government, the public and the donor community.
A source in the ministry of justice told the New Vision that on average, the court awards grow up to about sh15b in every year.
Christopher Gashirabake, the acting director for legal advisory services in the Attorney General's office attributed the rising court awards to complacency of some officials.
"If you cause loss to the Government, why should it be the Government to pay? Although public officers enjoy some immunity from prosecution for decisions made in good faith, they should be held liable for some cases," he noted.
Gashirabake said the ministry this week start publish names of departments which flout contract regulations, although he did not disclose the details.
Article 119(5) of the 1995 Constitution states that no agreement or document to which the Government is a party or has an interest is to be concluded without the legal advice of the Attorney General. The Attorney General's instrument, however, exempts contracts whose monetary value is less than sh50m.