Local service provider Escalade Solutions Uganda Limited has sued the Parliamentary Commission seeking to recover over 146 million shillings in connection to the Inter-Parliamentary Union (IPU) conference held in Kampala.
The global gathering that brings together parliamentarians from more than 126 countries took place in Kampala from March 30th to April 6th this year.
The service provider contends that the Commission contracted it to supply uniforms and gift sets that were used during the conference but dishonored to pay them at the agreed foreign exchange rate.The case was filed before the Commercial Court on July 24.
In their complaint, the service provider states that on September 2, 2011, it delivered 125 jackets for men, 175 ladies uniforms at a total cost of 86,875 dollars or approximately 217 million shillings.
Through their lawyers of Kituuma- Magala and Company Advocates, the service provider claims that Parliamentary Commission paid at a dollar rate of Shillings 2, 400, yet the prevailing market rate at the time was Shillings 2, 830. The service provider asserts this led to a total loss of 37 million shillings.
Additionally, the service provider contends that on October 10 last year, it delivered 2,300 gift sets, at a total cost of 203,000 dollars, approximately 507 million shillings, and that the rate of the dollar was at Shillings 2,875. However, the commission paid them at the rate of 2,400 allegedly causing a loss totaling to 109 million shillings.
The service provider is seeking costs of the suit, plus general damages for non-use of money and inconveniences. It is demanding interest on all these at a rate of 25% from the time of deliveries until full payment.
Court has ordered the commission to file its defense within 15 days from the date it receives the summons. The case file has been allocated to Justice Helen Obura who is yet to fix a hearing date.
