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Pioneer bus company to reach settlement on sh50m debt
Publish Date: Jun 04, 2014
Pioneer bus company to reach settlement on sh50m debt
URA grounded Pioneer bus operations over sh8b unpaid taxes
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By Hillary Nsambu

Justice Christopher Madrama of the Commercial Court has allowed troubled Pioneer Easy Bus Limited and Dezy Business Systems Limited until August 18 to reach a settlement over a sh50m debt the bus company allegedly owes.

Mid last year, Dezy Business Systems sued Pioneer Easy Bus for breach of sale agreement, seeking to recover a total of sh50,140,000 worth of office furniture for which the suspended bus company had ordered for furnishing its offices before it was closed.

The judge noted that the last time the case had come up for hearing, the court was informed that Pioneer Easy Bus had issued cheques worth about sh32m towards the settlement of the suit and negotiations were on going.

The court further noted that as the parties indicated that there is a possibility that the spirit of a settlement can still be invoked; the application by Pioneer easy Bus Ltd in which it sought to contest as an exaggerated claim would be heard on August 18, 2014.

Dezy Business Systems had earlier obtained an exparte judgment in which Pioneer Easy Bus Ltd was required to pay the money with interest and the cost of the suit.

But, the bus company applied to have the judgment set aside unconditionally on the grounds that the affidavit in support of the claim for payment was full of falsehoods and the amount was greatly exaggerated.

In 2012 URA halted the operations of Pioneer Easy Bus Ltd and impounded their buses demanding to be paid taxes worth over sh8b.

As URA was about to auction the buses for the recovery of its taxes, the company petitioned for the President’s intervention into the matter and; in May 2013, he ordered that URA, KCCA and Pioneer Easy Bus Ltd should sit at a round table for purposes of coming to terms and allow the bus company to resume operations as they pay the taxes in installments.
 

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