The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Electricty distributor UMEME has been dragged to court for failing to pay more than 115 million shillings to an advertising firm.
In its petition before the Commercial Division of High Court, QG Saatchi and Saatchi Limited is seeking an order for the payment of more than 85 million shillings. The money was unpaid retainer fees and 30 million shillings being the outstanding fees for services they rendered to UMEME for the months of August, September and November 2018.
Through their lawyers of Baluti and Ssozi Company Advocates, QG Saatchi and Saatchi contends that by an Advertising Agency Agreement dated March, 24th, 2017 UMEME appointed them as their Public Relations, Digital and Creative Agent.
The appointment had been preceded by a bidding process which QG Saatchi and Saatchi emerged as the successful bidder.
QG Saatchi and Saatchi reportedly duly performed the services as agreed and during the course of its performance, it issued various invoices to UMEME in respect to the services they rendered.
They argue that of the invoices issued to UMEME, invoices totalling shillings 85,296,477 were reportedly not settled.
“The defendant (UMEME) has no justification for failing to settle the said invoices because the services were rendered with the defendant’s approval”, reads the document in court.
QG Saatchi and Saatchi further contends that on occasions it rendered services at the request of UMEME while purchase orders were pending processing by UMEME and this totalled to shillings 30,075,250 which has also not been paid without justification.
On August, 31st, 2018, QG Saatchi and Saatchi reportedly notified UMEME of their intention to terminate the contract after 90 days lapse in accordance with the Advertising Agency Agreement.
According to the evidence before court, UMEME replied in its letter dated September 27th, 2018 declaring that the termination took effect on August, 31st, 2018 thereby disregarding the notice period.
Now QG Saatchi and Saatchi contends that UMEME’s failure to honour its payment obligations has caused the company to suffer from financial distress and inconvenience and they now want to be compensated for general damages. They also want court to compel UMEME to pay.
UMEME has since been summoned to file its defence within fourteen days before the case is allocated and fixed for hearing.
*****
URN
