Consultancy firm sues CAA for breach of contract

Kampala, Uganda | THE INDEPENDENT | Global Consulting Services Limited has sued Civil Aviation Authority-CAA seeking to recover more than 250 million Shillings for services rendered during the authority’s silver jubilee celebrations.

The authority which is the regulator of the aviation industry in Uganda was established in 1991 and celebrated 25 years of operation in 2016. Four years later, Global Consulting Services Limited is accusing them of failing to honor terms of a contract signed at the time and paying for services rendered between 2016 and 2018.

According to the contract signed by Ignatious Ingundura, CAA’s then Public Affairs Manager, the firm  was tasked to run public and corporate messages on digital-led screens at Entebbe Airport and Silver Jubilee Awards and Animations. The firm was also tasked to design and produce customized t-shirts, provide ushering services, video coverage, certificates, brand CAA checkpoint walls and vehicles among others.

The services that were to be offered at the various events including the stakeholder’s dinner at Serena Hotel Kampala were valued at 252 million Shillings.

The company contends that they were pressurized to deliver the services as they sort out the payment formalities given the fact that the president had confirmed his attendance at short notice. However, through its lawyers led by Gawaya Tegule, the company says they have never been paid.

The company explains that the failure by CAA to pay the money has affected their operations. They also contend that Uganda Revenue Authority recently recalled its VAT registration status for non compliance which means they can no longer compete for government businesses.

The company also says it can no longer afford running its offices in Lubowa because its cash flow was extremely disorganized. As such, they want the court to compel CAA to pay the said money and also declare that their actions amounted to breach of trust and care since they were done with impunity and bad faith.

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