Firm sues gov't over terminated advertising deal

Aug 20, 2014

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.

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.

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