National
Kazinda dragged to court over hotel rent
Publish Date: Feb 16, 2014
Kazinda dragged to court over hotel rent
Sheraton Hotel, formerly called Apollo Hotel Corporation Limited, is suing Geoffrey Kazinda
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By Hillary Nsambu            

The hearing of a court case in which a city hotel seeks to recover sh60m from troubled Geoffrey Kazinda has been set for March.

Former Apollo Hotel Corporation Limited, now called Sheraton Kampala Hotel, is suing the former principal accountant in the Office of the Prime Minister for breach of a tenancy agreement.

The agreement between the two parties was entered in 2009.

Hearing of the case at the Commercial Court was initially set for February 13, but was put off until March 13.

The hotel alleges that in the arrangement, it let Kazinda premises at an annual rent of US$ 11,520 (about sh28m) payable in advance in equal monthly installments.

It was also agreed that the defendant (Kazinda) would pay 3% on any of the arrears in default.

But Kazinda issued three cheques worth sh30m, says the hotel which is represented by KAA Advocates.

When they presented the cheques to Barclays Bank, it dishonored them, which led the hotel to sue Kazinda.

Kazinda admitted the tenancy agreement, but denied the tenancy as the hotel failed to let him a vacant office, which was one of the conditions of the deal.

He said the ‘vacant’ office he was supposed to occupy had all the while been used by another tenant.

The Anti-corruption Court jailed the former principal accountant for four years after being found guilty of abuse of office.

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