Former Uganda Airlines CEO, Muleya, wants Shs 3.5 billion over termination of contract

The suspended Chief Executive Officer of Uganda Airlines Cornwell Muleya has indicated that he will take legal action against the airlines over the unlawful suspension and termination of his employment contract.

Through his lawyers Muwema & Co Advocates, Muleya said there was no factual, contractual or legal basis for the airline's impugned action of disregarding the due process when it unlawfully suspended and subsequently terminated his contract of employment.

According to a notice from his lawyers dated March 28, 2022, Muleya is seeking Shs 3.5 billion in damages, payment arrears, and other costs from the airline failure which will lead to a legal challenge.

He said that he was not accorded an opportunity to respond to the allegations nor was he heard before sending him on leave of absence.

"Despite the above glaring irregularities, our client was directed to keep away from the company premises without any lawful or just cause. Moreover, no promised investigation into alleged mismanagement by our client ever took place. In fact, no investigation report has ever been produced to this end," said Muleya through his lawyers.

In April 2021, the Minister of Works and Transport, Gen Edward Katumba Wamala suspended a number of senior managers at the airline for at least three months.

This was on the orders of President Museveni to pave the way for investigations into allegations of financial mismanagement, collusion, and nepotism in staff recruitment among other issues.

The 13 affected top managers included the CEO Muleya.

Muleya explained that whereas his employment contract provided for dismissal from employment on grounds of serious misconduct or gross negligence, it did not provide for termination.

He said due to his exceptional performance, his employment contract was extended on the same terms for another period of eighteen months from March 1 2021 before the suspension.

He said his suspension was illegal because it exceeded the maximum period of four weeks allowed under Section 63 (2) of the Employment Act, 2006.

"In spite of the blatant illegalities, you purported to extend our client's illegal suspension by another three months vide your letter dated 20th August 2021. We need to emphasize that the law does not provide for the extension of suspension beyond the period provided under Section 63 of the Employment Act," said the notice is seen by the Nile Post.

Through his lawyers, Muleya now wants immediate reinstatement as the Chief Executive Officer of the company.

He wants an unconditional apology for the material inconvenience, reputational damage, and loss he suffered.

He wants the airlines to pay him Shs 3.5 billion in damages and other costs including salary arrears.

"You issued the said termination notice with the full knowledge that our client was never heard in any disciplinary proceedings. Additionally, you were aware that our client's contract of employment did not have a termination clause," his lawyers.