Masaka High Court Judge Justice Margaret Oumo Oguli has ordered Masaka Municipal council to pay a compensation of UGX 198 million to ‘Batata Ltd’, the former managers of Masaka Taxi Parks for bleach of contract.
Justice Oguli made the ruling this afternoon basing on a suit filed by the management of Batata Ltd challenging a decision to terminate a contract granting them a right to collect revenues from Masaka Municipality taxi parks on behalf of the municipal council.
Court records indicate that in 2010 Batata Ltd was granted a tender to control and collect revenue from Kimaanya/Kyabakuza and Katwe-Butego Division taxi parks on behalf of Masaka Municipal council. The contract granting the company the tender was dully signed by Town Clerk Benon Iga.
However, Masaka Municipality authorities terminated the contract under unclear circumstances and granted it to Masaka United Taxi Drivers and Owners Cooperative Society (MUTDOCS).
During the trial, Justice- Oguli had advised the Council Lawyer Grace Mwebaze Ndibarema to consider settling the mater out of court, an opportunity he did not take up.
Godfrey Kayemba Afaayo the Municipal Mayor says the award is a great loss to Council. The ruling also comes at a time when Masaka Municipal Council is involved in a number of legal battles arising from earlier mismanaged affairs and contracts.