Court halts UTODA contract cancellation

THE High Court has issued an interim order restraining Kampala City Council (KCC) from terminating Uganda Taxi Operators and Drivers’ Association contract (UTODA) to manage transport in the city.

By Edward Anyoli

THE High Court has issued an interim order restraining Kampala City Council (KCC) from terminating Uganda Taxi Operators and Drivers’ Association contract (UTODA) to manage transport in the city.

Taxi operators went to court to block recommendations by Public Procurement and Disposal of Public Assets Authority (PPDA) to have the contract between KCC and UTODA terminated.

Kampala High Court deputy registrar Elizabeth Kabanda yesterday directed that no further action be taken against UTODA until court hears a case filed by the taxi operators.

“It is hereby ordered that KCC be restrained whether by themselves or their agents, workmen and officials from enforcing and implementing action on the report by PPDA,” the interim order read.

Registrar Kabanda further stated that the interim order issued, was subject to extension by the Judge who would preside over the case. The case was allocated to Justice Kibuuka Musoke to be heard on February 4.

Procurement authority on December 20, 2008 made a recommendation to KCC that all money collected be paid directly to the city council’s account.

PPDA further recommended that UTODA failed in its obligations to pay sh290m per month to KCC as requires by the contract.

Taxi operators said their contract, which was signed in 2005, would expire on October 30, 2010, adding that they still had the obligation to manage transport in the city.

The operators, through their lawyer Yasin Nyazi, also argued that KCC acted in a biased manner and in bad faith on the contract.