Judiciary in rent wrangle over premises

Apr 03, 2011

THE Judiciary is battling with the owners of Bhatia Chambers in Kampala over delayed payment of monthly rental charges for the Constitutional Court premises.

By Sylvia Nankya

THE Judiciary is battling with the owners of Bhatia Chambers in Kampala over delayed payment of monthly rental charges for the Constitutional Court premises.

The court has for the last 12 years operated from the building, located on Parliamentary Avenue but risks eviction if the standoff is not resolved.

The court’s tenancy agreement expired on April 30, 2008 and has not been renewed although the department continues to occupy the premises, Dorcas Okalany, the judiciary secretary, told the parliamentary public accounts committee.

She explained that efforts to renegotiate the contract had failed as the landlord does not give the judiciary audience.

“The landlord is difficult and has been holding us at ransom for breach of contract for the last three years. Efforts to renew the contract have proved futile,” Okalany said.

The initial tenancy agreement for the Court of Appeal and the Constitutional Court office premises was signed in May 1999 and renewed on September 18, 2007.

Clause (7) of the agreement provided for a 2% interest per month on delayed payment of the rent and other charges.

Prior to the expiry of the agreement in 2008, delays on rental payment caused a compound interest of over sh987m. Of this, sh586m was paid and another sh42m was paid on simple interest.

The money accumulated in the 2009-2010 financial year because the landlord refused to take payments and instead ordered the Judiciary to vacate the building and sued the Government.

A report by the Auditor General indicates that in the 2008-2009 financial year, the Government spent over sh1b paying rent arrears and interest.

According to Okalany, the tenancy agreement was negotiated by the President’s office, which had the authority to enter rental contracts for government offices.

“However, to save the judiciary from further embarrassment and harassment, alternative premises are being sought,” she said.

“We are considering constructing our own premises, although we are still constrained by lack of funds. We have made arrangements to leave by the end of this financial year,” she added.

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