Pioneer Easy Bus asks for more time

Apr 02, 2013

Pioneer Easy Bus seeks a three-month grace period within which to sign a contract with KCCA and settle a sh8b debt.

By Joel Ogwang

Pioneer Easy Bus is seeking a three-month grace period within which to sign a contract with Kampala Capital City Authority (KCCA) and settle a sh8b liability
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This is a move intended to put its buses, currently grounded over an sh8b debt owed to the Uganda Revenue Authority (URA), back on the road.

In a letter dated March 19, John Masanda, one of the Pioneer Bus directors, asked Richard Kamajugo, the commissioner of customs at URA, that the two parties revert to a second 24-month MoU entered into on August 23, 2012.

In his letter dated March 6, Kamajugo had indicated that URA was unable to release the buses until a comprehensive payment plan is agreed on.

“We (Pioneer Easy Bus) propose that the said MoU and the terms therein become effective three months (serving as grace period) from the date of this letter as we are certain that by then, a comprehensive contract with KCCA shall have been entered into,” Masanda said.

“So far, the negotiations are going as expected, which shall enable us continue in business.” Masanda also requested that if the proposal is agreeable to URA, the buses be released to resume operations to enable them meet their obligations.

When contacted, Kamajugo confirmed receiving Masanda’s letter.

“Yes, I received the letter and responded to it, but I cannot share with you its contents,” he said.

The bus company has come under public scrutiny following failure to settle its tax obligations.

Matters were worsened by media reports quoting the Uganda Taxi Operators and Drivers Association chairman, John Ndyomugyenyi, as saying they were considering a bid for the buses should they go on sale.

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