Kasese authorities dragged to CAO over alleged breach of contract

KASESE - The Kasese District Local Government (KDLC) has been dragged to the chief administrative officer over an alleged breach of contract.

The Mpondwe Cross Border Traders Co-operative Society Ltd has filed a formal complaint against the district authorities, demanding shillings 317 million in tender fees and one billion in compensation for alleged breach of contract in the management of the Mpondwe-Lhubiriha Cattle Market.

The co-operative’s demand letter, a copy of which New Vision Online has seen, is dated October 3, 2025.

The dispute, rooted in a contentious relocation of the market, which is a critical border trade hub with the Democratic Republic of Congo (DRC), has sparked accusations of corruption and bureaucratic sabotage.

The contract 

The co-operative, awarded a 2022 tender to collect revenue at the market, claims it was unlawfully barred from operating despite fulfilling all procurement requirements under the Public Procurement and Disposal of Public Assets (PPDA) Act. 

Nicholas Mwebaze, the cooperative’s main investor, on November 18, 2025, said after winning the bid, the market was abruptly relocated from Mpondwe-Lhubiriha town council to Isango sub-county, a move he alleges was orchestrated to block their operations.

“The relocation without legal justification left us stranded,” Mwebaze said. “Despite ministerial directives and court rulings in our favour, the district colluded to stop us from collecting revenue. We’ve lost over shillings one billion in potential earnings over three years.”

Legal battles and ministerial intervention

After six months of stalled operations, the co-operative petitioned the local government ministry, prompting Minister Raphael Magyezi to intervene. 

In an August 2023 letter, Magyezi ordered Kasese Resident District Commissioner (RDC) Lt. Joe Walusimbi to close the “illegal” market at the town council and enforce compliance with the Markets Act 2023. 

“I urge the District Security Committee to implement government instructions without further delay, ensuring compliance with the Markets Act, 2023, and other laws governing trade and revenue collection. It is your duty to maintain peace, enforce transparent trade, and uphold lawful administration in Kasese District,” the minister wrote.

However, Mwebaze claims the directive was ignored, leaving the co-operative in limbo.

A temporary reprieve came when the district granted a three-week extension, but the market was later moved back to the town council, rendering the co-operative’s contract unenforceable. 

“We’ve been left in debt after borrowing to fund the tender, while illegal operators profit,” Mwebaze said.

New leadership steps in

Kasese’s newly appointed CAO Paul Walakira, acknowledged the crisis during his first days in office, attributing the dispute to a territorial feud between Mpondwe-Lhubiriha town council and Isango sub-county over revenue control.

“I’ve heard Mwebaze’s concerns and I will help,” Walakira said, pledging to resolve the misunderstanding. 

“This issue must be addressed to restore lawful administration and protect investors.”