UTODA fees illegal â€" court
May 15, 2005
THE Commercial Court has ruled that it is illegal for Uganda Taxi Operators and Drivers Association (UTODA) to force taxi operators to pay loading fees outside the taxi parks.<br>
By Hillary Nsambu
THE Commercial Court has ruled that it is illegal for Uganda Taxi Operators and Drivers Association (UTODA) to force taxi operators to pay loading fees outside the taxi parks.
“Even though this loading fee is said by UTODA to be voluntary, I find that it is not a fee collectable under the contract. It is a voluntary fee collected at the stages and any attempt by anybody to force its collection or refusing the loading of a passenger service vehicle that has not paid it, is illegal,†Justice Geoffrey Kiryabwire said.
He made the ruling in a suit filed by over 800 members of the Association of Taxi Owners and Drivers of Uganda (ATODU) against UTODA.
However, he declined to award over sh2b as a refund to ATODU members as they had asked.
John Matovu represented ATODU, while Yasin Nyanzi was for UTODA.
ATODU challenged an increase of sh500 over the official sticker fees of sh3,500 per taxi inside the taxi parks, arguing that UTODA had no powers to increase the sticker fee on behalf of Kampala City Council (KCC).
“However, since the contract between KCC and UTODA is silent on how those charges are to be levied, I find that the increase of daily fees from sh3,500 to sh4,000 and consequently sh4,500, cannot be illegal,†Kiryabwire ruled.
Ends
THE Commercial Court has ruled that it is illegal for Uganda Taxi Operators and Drivers Association (UTODA) to force taxi operators to pay loading fees outside the taxi parks.
“Even though this loading fee is said by UTODA to be voluntary, I find that it is not a fee collectable under the contract. It is a voluntary fee collected at the stages and any attempt by anybody to force its collection or refusing the loading of a passenger service vehicle that has not paid it, is illegal,†Justice Geoffrey Kiryabwire said.
He made the ruling in a suit filed by over 800 members of the Association of Taxi Owners and Drivers of Uganda (ATODU) against UTODA.
However, he declined to award over sh2b as a refund to ATODU members as they had asked.
John Matovu represented ATODU, while Yasin Nyanzi was for UTODA.
ATODU challenged an increase of sh500 over the official sticker fees of sh3,500 per taxi inside the taxi parks, arguing that UTODA had no powers to increase the sticker fee on behalf of Kampala City Council (KCC).
“However, since the contract between KCC and UTODA is silent on how those charges are to be levied, I find that the increase of daily fees from sh3,500 to sh4,000 and consequently sh4,500, cannot be illegal,†Kiryabwire ruled.
Ends