Business
Firm sues gov’t over terminated advertising deal
Publish Date: Aug 20, 2014
Firm sues gov’t over terminated advertising deal
General (AG),Peter Nyombi is recorded as the defendant in the case
  • mail
  • img
newvision

By Andante Okanya


A row has erupted after an advertising firm’s deal from which it expected to fetch sh150m, for stickers placed on passenger service vehicles, was terminated by government.


On August 14, Modern Art Communications filed a civil suit at the High Court in Kampala.


The firm’s license was scheduled to expire in June this year. Court documents show that the contract was terminated this year on March 31.


Government’s chief legal advisor the Attorney General (AG) is recorded as the defendant in the case. The stickers contained the name of the firm, and acted as a tint.


The company states that in a letter dated January 30, 2009, it made an application to the Works and Transport ministry for the requisite license to carry out business.


Among the court documents is a letter dated May 5, 2009, which granted the firm a license to commence operations.


The firm states that it subsequently embarked on the business of mobile advertising on the rear window screens of various PSVs by fixing one way vision stickers on them.


The plaint states that the license was renewed annually, until March 31 when the Transport Licensing Board secretary, terminated it.


The firm notes that consequently, the Police, who are agents of the AG, routinely removed its stickers from the vehicles, causing it financial loss.


The company laments that on March 15, prior to the termination of the contract, it had contracted Harris International Limited to do some mobile advertising on 500 vehicles which operated on different routes in the country.
It states that the contract with Harris was valid for one year, at a rate of sh25,000 per vehicle every month.


“The defendants employees have in effect nullified the said contract and caused the plaintiff to suffer financial loss for which the plaintiff hold the defendant liable of sh150m as special damages,” the plaint states in part.


The firm wants the sh150m tagged to an interest rate as deemed fit by court, from the date of judgment till full payment.
The civil division deputy registrar, Charles Emuria, has asked the AG to file his defence within 15 days from the date of receipt of the summons.


In the summons dated August 14, 2014, the AG has been cautioned to heed lest the case is heard and judgement passed without his input.


When contacted yesterday, the Solicitor General, Francis Atoke, a senior official in the AG’s chambers, said the office was not aware of the case.


“We have not received the summons,” Atoke said.
 

Related Stories

Ex-inmate sues Gov’t over jail murders

Gov’t sues LC bikes insurer, wants sh1.1b

 

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
EADB to fund more projects in Uganda
The East African Development Bank (EADB) has received credit worth $40m (about sh104b) from the African Development Bank (AfDB) to finance infrastructure, manufacturing, tourism, agriculture, transport, education and health projects...
Quacks in construction industry a big threat to Vision 2040
Players in the construction industry have asked the Government to regulate it, saying increasing numbers of quacks will affect efforts to attain the Uganda Vision 2040....
NSSF to save Uganda Clays from collapse
It is now or never for Uganda Clays Limited (UCL). The National Social Security Fund (NSSF) has announced that it will convert a sh16.7b loan to UCL into equity in a bid to secure the company’s future....
UAE Exchange Uganda celebrates, brand turns 34 globally
UAE Exchange Uganda joins its global family in celebrating the 34th anniversary of the brand coming into existence...
Former health ministry accountant to go on trial over illicit enrichment
The Constitutional Court has ruled that the prosecution of former principal accountant, Ministry of Health, Nestor Machumbi Gasasira, should proceed in the Anti-Corruption Division of the High Court....
Martin Aliker is new NIC chief
Dr. Martin Aliker, the senior presidential adviser on special duties, has been appointed the acting chairman of the National Insurance Corporation, following the death of the chairman, Dr. Remi Olowude, last month....
Should diplomatic passports issued to ex-govt workers be with drawn?
Yes
No
Can't Say
follow us
subscribe to our news letter