National
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
  • mail
  • img
newvision

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.
 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
EALA session commences in Kigali
The second meeting of the 3rd Session of the 3rd Assembly commenced in Kigali, Rwanda Tuesday afternoon...
Makerere University has canceled graduation fees increment following a students strike...
Makerere backtracks on graduation fees
Graduation fees will remain unchanged, Makerere University administration has announced....
Amama should declare his interests - DP
THE Democratic Party (DP) has said that short of former Prime Minister Amama Mbabazi being held accountable for alleged wrongs committed while still in good books of the NRM...
Pistorius gets five years in jail for killing girlfriend
South African Paralympian star sprinter Oscar Pistorius was sentenced to five years in prison Tuesday for the killing of his girlfriend last year, as his sensational trial reached a climax....
Oscar Pistorius sentenced to 5 years in prison
SOUTH African Paralympic athlete Oscar Pistorius today learns his sentence for shooting dead his girlfriend on Valentine''s Day last year, bringing an end to a seven-month trial that gripped the nation....
Do Ugandan tycoons prepare their children to take over their business empires?
Yes
No
Can't Say
follow us
subscribe to our news letter