UBC agrees sh402m lawyer land fees payment

By Andante Okanya   

State broadcaster Uganda Broadcasting Corporation (UBC) has opted for an out-of-court settlement and agreed to pay city law firm Muhimbura and Company Advocates sh402m legal fees for drafting the ownership paperwork on the broadcaster's prime land in the city.

Under the consent judgment signed on March 23, and filed in the civil division registry of the High Court in Kampala, UBC has agreed to pay sh30.9m in equal installments in a period of 13 months starting on June 30 this year.

"By consent of both parties to the suit, it is hereby agreed that the defendant [UBC] pays to the plaintiff [law firm] a total sum of sh402m as full and final settlement of the plaintiff’s fees arising from the suit," the consent states.

The consent judgment bears the signatures of the registrar Eudes Keitirima, Paul Muhimbura [law firm], and Kiryowa Kiwanuka [UBC lawyer].

However, a clause in the consent stipulates that in the event of UBC defaulting, court would compel it to pay the whole outstanding balance.

The suit arose on March 9, when the lawyer and the firm demanded sh529m as legal fees for breach of contract. They claimed to have secured UBC land in Bugolobi,Naguru, and Kabira Road, that was under threat from private developers  and encroachers.

According to a letter dated June 22, 2006, UBC instructed them to convey the properties into its names. Court records show that the task was done and certificates of the title were handed to UBC.

The Bugolobi land on Faraday Road is comprised in freehold register volume 211 Folio 18 plots 8-10, 12-16 and 18-20, whereas the Kabira Road land is comprised in freehold register volume 212 folio 10 plots 19,21,23, and  M.47.The Naguru Hill land  is comprised in freehold Register volume 211 folio 11 plots M.35.

The Bugolobi land was contentious until February 25 this year, when the Commercial Court in Kampala ruled that it was fraudulently transferred to city tycoon Hassan Basajjabalaba.

The complainants claimed they issued a fee note of sh1.7b, which was professional fees and disbursements rendered in accordance with the Advocates Regulations. It included Value Added Tax (VAT).

However, after lengthy negotiations, which also factored in UBC's financial difficulty, a final fee of sh780m was agreed upon, and was to be paid within a year. But the aggrieved claim that since March last year, UBC has defaulted on payment which totals up to sh529m.

According to court documents, UBC was supposed to pay sh52.9m annually. The complainants claim to have suffered loss, damage and inconvenience.

The probe which was granted a total budget of sh7.1b was in February this year suspended by Parliament in a heated bipartisan debate over allegedly failing to release a single report despite having its deadline twice extended.

However, the decision was later rescinded by the NRM caucus in a special session chaired by the President and concerns over its failure to release an interim report referred to the Social Services Committee of Parliament. 

The commission is set to release its final report in August.