FORMER shareholders of Nyanza Textile Industries Limited (NYTIL) have appealed to the Supreme Court for a declaration that the Inspector General of Government (IGG) had no powers to block the recovery of sh14b worth of their shares.
The 120 claimants include UPC president Miria Kalule-Obote, Nkumba University vice-chancellor Prof Ssenteza Kajubi, Gordon Setimba and former ministers Paul Etiang, Eng. James Zikusoka and Adoko Nekyon.
They said the IGG breached the Constitution and usurped the Attorney Generalâ€™s powers by intervening in the matter.
â€œBy applying to set aside the judgment, the IGG was taking over the conduct of the suit from the Attorney General, which is a violation of the provisions of the Government Proceedings Act,â€ the memorandum of appeal reads in part.
The complainants are represented by Byenkya, Kihika and Company Advocates.
They said the Court of Appeal failed to see that the IGG had no mandate to represent the Government in a civil suit.
The IGG said she had to intervene to save the Government from incurring financial loss.
Last year, the Attorney General had settled out of court the case filed by the minority shareholders of Nytil and had agreed to compensate them for their interests lost when the Government got rid of their company.
Before they could be paid, they said, the Minister of Finance sought the IGGâ€™s intervention, alleging that the compensation was entered into without authorisation.
NYTIL was built in the 1950s by the Manchester-based Calico Printers.
Former NYTIL owners slam IGG