Wavamunno in court over CHOGM
Sep 08, 2011
THE Commercial Court has set October 30 to start a preliminary hearing of a case in which Spear Motors is seeking €1.3m (about sh5.33b) in what it claims to be a loss in the CHOGM car deal.
By Edward Anyoli
THE Commercial Court has set October 30 to start a preliminary hearing of a case in which Spear Motors is seeking €1.3m (about sh5.33b) in what it claims to be a loss in the CHOGM car deal.
Ahead of the hearing, Justice Irene Mulyagonja yesterday advised the lawyers representing Spear Motors and Motor Care to meet on October 30 and November 17 for preliminary hearings.
Spear Motors is suing the Government, Motor Care and Intercar, the agents for BMW that won the deal, for breach of contract and interference in contractual relations.
Spear Motors, which sells Mercedes Benz and is owned by Gordon Wavamunno, wants compensation amounting to more than sh5.33b plus general damages and interest.
Spear Motors argues that in March 2007, the works ministry solicited for the supply of executive vehicles for CHOGM.
According to the suit, on May 2, 2007, the contracts committee awarded Spears Motors the tender for the supply of 204 executive saloon cars at a total cost of €8.3m euros.
Wavamunno further argues that he agreed to the terms of the contract and in light of the tight CHOGM timelines, immediately placed an order for the 204 cars.
However, Wavamunno says, he received a letter from the ministry in June 2007 cancelling the tender due to insufficient funds.
He alleges that Motor Care and Intercar interfered with the procuring process to cancel the contract and award it to the two companies (Motor Care and Intercar). The Attorney General denies allegations that the ministry awarded Spear Motors the contract.
THE Commercial Court has set October 30 to start a preliminary hearing of a case in which Spear Motors is seeking €1.3m (about sh5.33b) in what it claims to be a loss in the CHOGM car deal.
Ahead of the hearing, Justice Irene Mulyagonja yesterday advised the lawyers representing Spear Motors and Motor Care to meet on October 30 and November 17 for preliminary hearings.
Spear Motors is suing the Government, Motor Care and Intercar, the agents for BMW that won the deal, for breach of contract and interference in contractual relations.
Spear Motors, which sells Mercedes Benz and is owned by Gordon Wavamunno, wants compensation amounting to more than sh5.33b plus general damages and interest.
Spear Motors argues that in March 2007, the works ministry solicited for the supply of executive vehicles for CHOGM.
According to the suit, on May 2, 2007, the contracts committee awarded Spears Motors the tender for the supply of 204 executive saloon cars at a total cost of €8.3m euros.
Wavamunno further argues that he agreed to the terms of the contract and in light of the tight CHOGM timelines, immediately placed an order for the 204 cars.
However, Wavamunno says, he received a letter from the ministry in June 2007 cancelling the tender due to insufficient funds.
He alleges that Motor Care and Intercar interfered with the procuring process to cancel the contract and award it to the two companies (Motor Care and Intercar). The Attorney General denies allegations that the ministry awarded Spear Motors the contract.