High Court blocks sh6b payment to businessman

Jul 14, 2005

THE High Court yesterday saved the Government a sh6b loss in an award to Mbarara-based businessman Francis Mwebesa.

THE High Court yesterday saved the Government a sh6b loss in an award to Mbarara-based businessman Francis Mwebesa, reports Hillary Kiirya.

The money had been fraudulently awarded to B.M Steel Limited against Kilembe Mines Limited (KML), a government body, for loss of income and damages, among other things.

Commercial Court’s Justice Egonda Ntende turned down the award and ordered that it be struck out with costs. It also left no option for an appeal.

Former magistrate Andrew Bashaija (arbitrator) now an advocate, presided over the award but presidential aide Charles Rwomusha intervened, saying the law ought to take its course. In his judgment Ntende said the arbitrator acted with evident partiality to B.M Steel and prevented KML from presenting their case fully.

“It is clear that the arbitrator never even attempted to assess the evidence in support of the claim. Instead, he offered himself as a conduit for unjust enrichment of B.M Steel Limited through clearly duplicitous claims of colossal sums of money.

“I hereby order that this award be set aside with costs here (High Court) and before the arbitration tribunal to KML,” said Ntende.

James Nangwala, who represented KML in the case was satisfied with the judge’s decision saying it was very clear and well argued.

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