By Edward Anyoli
Commercial Court has dismissed a case against Threeways shipping services, in which MTN had sued them over a US $3,827,820.71 (about shsh9.5b) deal.
Justice Christopher Madrama ruled that it was wrong for MTN to pursue the case against Threeways shipping services yet there was a memorandum signed not to pursue a criminal case against the company at the Anti- Corruption Court.
Threeways Shipping Group is a clearing agent that has been transacting business with MTN and carrying on business of international forwarding and logistics, haulage and customs brokerage.
MTN telecommunication Communication Company dragged Threeways Shipping Services(Group Ltd) to court and have been wrangling over a breach of contract case constituted by a Memorandum of Understanding allegedly over failure by Threeways to pay $3.8m to MTN.
The memorandum, was signed on September10, 2012 between MTN and Threeways shipping service, MTN complained of theft, embezzlement and causing financial loss against its staff and Threeways shipping services. Subsequently MTN lodged a complaint at the Anti- corruption court.
MTN had argued that at the time memorandum of understanding was signed, there were no pending charges against Threeways services and its directors. However, Threeways services represented by Kiwanuka, Karugire and Company Advocates argued that MTN agreed not to pursue any criminal matter or civil case against Threeways services.
“The correct remedy is not a dismissal of the action of the plaintiff (MTN) which would deal with the merits of the claim. The correct remedy is to dispose of the action by striking it off the record. The plaintiff (MTN) action is accordingly struck out with costs,” Madrama said.
Madrama noted that the memorandum of understanding was executed in violation of section 104 of the Penal Code Act.
“There is an agreement to receive a benefit by way of co-operation from defendant (Threeways shipping services) to abstain from prosecution of theft and causing financial loss. The conclusion is that the memorandum of understanding was executed in violation,”Madrama said.