By Andante Okanya
A row has erupted between Uganda Taxi Operators and Drivers Association (UTODA) and a consultant who is demanding sh157m as unpaid fees.
On April 1, the consultant JAC International Limited filed a suit at the Commercial Court in Kampala, contending that it managed UTODA’s day to day technical and administrative activities.
In the suit, the defendant is recorded as UTODA Awakula Ennume Transport Cooperative Society Limited.
Through Tumusiime, Kabega and Company Advocates, the consultant asserts that UTODA admitted indebtedness, having made part payment of sh73m. The company purportedly ignored several reminders to settle the debt.
“The defendant is truly indebted to the plaintiff and has no defence at all to this suit. Notice of intention to sue was served on the defendant but was ignored,” the plaint reads in part.
Court documents indicate that last year on March 1, the parties entered a consultancy agereement. The consultant was tasked to manage operations of UTODA’s bus passenger service.
The consultant contends that it sub-contracted various service providers to enable a smooth platform for the bus service operations.
The consultant listed the services rendered as management fees, fuel, and insurance, rent for the parking yard, advertisement, licence fees, and security.
Other services listed are loan repayment, branding, paying salaries of workers, buying uniforms for workers, stationary, generator hire and buying vehicles, al totaling to sh230.5m.
Court has ordered UTODA to file its response within 10 days. In the order dated April 2, 2014, it has been cautioned to heed, lest JAC International obtains a decree to the sum of sh157m.
The case file has been allocated to Justice Henry Adonyo. However, a hearing date is yet to be scheduled.
UTODA, consultant in sh157m row