Parliament has terminated UMEME contract which had 12 years to end amid government resistance for termination.
The termination is based inconsistence in the contracts signed between the government and UMEME.
Mps approved the recommendation made by the mps who were on the Adhoc committee that investigated the irregularities in energy sector.
MPS discovered that government signed unflavored contracts with UMEME that on either ways Uganda is responsible for any damages.
The contracts indicate that if Umeme walks out due to disagreement Uganda pays 129 million dpllars and if Uganda terminates contract government pays 147.6 million dollars.
The prime minister Amama Mbabazi earlier had warned mps not to terminate Umeme contracts saying the termination will cause greater damage on tax payers and that it will scare away investors who would want to do business in Uganda.
MPS also rejected the proposal by Ndorwa wast David Bahati that the contract should not be cancelled since Ugandans had just bought shares in it.