February 18, 2013

Pioneer Bus Company Sued over Shs 70M Debt

Pioneer Easy Bus was last week attached by the tax body
Pioneer Easy Bus was last week attached by the tax body

Embattled Pioneer Easy Bus company has been sued over a Shilings70 million debt, days after Uganda Revenue Authority (URA), impounded  its fleet of buses for failure to clear taxes amounting to 8 billion shillings.

ETS International Driving Agency Limited sued Pioneer Bus before the Commercial Court in Kampala today. In its complaint, the driving agency claims the bus company owes it 70 million shillings in arrears, having trained 364 of its drivers at a total cost of 142 million shillings.

Through Buwembo and Company Advocates, ETS claims it was contracted to recruit and train drivers to operate the buses at a cost of 850,000 shillings per driver.

Court documents show that by December 2011, the driving company had completed recruiting plus training the drivers, as Pioneer Bus promised to fulfill its contractual obligation on commencement of operations but in vain.

Court documents further indicate that the driving company was given 80 million shillings as part payment, leaving a debt of 62 million shillings.

The suit also shows that in addition to the agreed contractual sum, the two parties signed a Shillings 12 million contract for hiring two buses for training. The firm says Pioneer also breached this agreement, and only paid 4 million shillings, declining to clear the balance of 8 million shillings.

The firm says on November 14 2012, Pioneer Bus abruptly stopped the training, yet costs had been incurred.

The firm wants the debt to be paid with a 24% interest from the time of contract breach until full payment.

The court’s registrar Margret Tibulya ordered Pioneer Easy Bus Company to file its written defence within 15 days or else Justice Masalu Musene will pass judgment against it.

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