Civil Aviation Authority sued for shs250m over  failure to pay service provider

Civil Aviation Authority(CAA) has been dragged to court for failure to pay a service provider to a tune of shs 250 million for various services rendered to them.

According to court documents, Global Consulting Services Limited says between 2015 and 2018, they were contracted by CAA to offer various services.

The company says that in 2015, it provided branding services for Entebbe Airport’s expansion services where they branded the CAA checkpoint wall and 11 vehicles including two coasters, six buses, and three Toyota Hiace vehicles.

“In 2015, the plaintiff(service provider) was put under immense pressure to deliver quickly because the president had at a short notice confirmed that he would be the guest of honor at the launch of the Entebbe airport expansion works which called for urgent mobilization and preparedness,” the court documents say.

“No local purchase order was issued but the plaintiff was assured that formalities would be sorted out later, since, given the time constraints, it was important to get things done to avoid embarrassment.”

According to the court documents, the service provider also says that in December 2016, he was contacted to provide invitation cards, stage screening, public address system, mood lighting, LED screen, ushers, video coverage, still photography and certificates among other services as Civil Aviation Authority celebrated its 25th anniversary that was crowned with a dinner and awards.

Global Consulting Services Limited however says they have never been paid by Civil Aviation Authority despite several reminders.

“Since then, the defendant has been taking the plaintiff around and round with long tales promising to pay but without fulfilling the responsibility,” the court documents say.

“As a result of the defendant’s unreasonable actions, the plaintiff was severely affected in terms of its ability to run business and was constantly harangued by URA and in 2019, the tax body recalled their VAT registration status meaning they can no longer compete for government businesses.”

The company also says it can no longer afford to run its offices in Lubowa because its cash flow was disorganized.

Demands

The service provider wants the court to declare that CAA acted in breach of contract and duty as its actions of refusing to pay for services rendered is unlawful.

According to the court documents, the plaintiff wants CAA to pay shs252 million in general damages for breach of trust and inconveniences caused.

“The plaintiff also prays for punitive damages for the bad faith and impunity occasioned and unbecoming, unexpected and improper of an otherwise reputable corporation which is also a government agency.”

The High Court Civil Division has given the Civil Aviation Authority 15 days to be able to file a defence in the matter.