The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The Civil Division of the High Court in Kampala has ordered government to pay 85 million shillings to an advertising firm called Modern Art Communications Limited for cancelling its contract to advertise on public service vehicles.
The judgment was delivered by Justice Musa Ssekaana.
The firm in 2014 sued government accusing the Transport Licensing Board – TLB of cancelling its contract to advertise on public service vehicles without giving it a fair hearing.
The company argued that it had obtained a five-year license from the TLB on 5th May 2009 that was being renewed annually. However, before the license could expire on 5th June 2014, the secretary of the government agency cancelled it on 31st March 2014 on request of the police director of traffic and road safety Dr. Steven Kasiima.
The managing director of the firm Edirisa Sonko said they had complied with the conditions of the contract. According to his evidence before court, the firm’s one way stickers that they used were duly tested and passed by Uganda National Bureau of Standard-UNBS and the company was licensed to advertise on public service vehicles. They also provided a list of particulars of the vehicles on which they put their adverts as their license was renewed annually.
After cancellation of the license, the applicant told court that traffic police started removing its adverts from the vehicles causing them financial loss. The firm had just entered a year’s contract with Harris International Limited worth 150 Million Shillings. Government argued that firm was also advertising on non-public service vehicles but did not present evidence to that effect. It went on to cancel the contract without hearing from the firm.
In his ruling, Justice Musa Ssekaana Ssekaana noted that the failure by the Transport Licensing Board to give the firm a reasonable opportunity to defend itself against the cancellation of the license that was likely to have adverse effects on its rights and interests was unfair and unjust.
The Deputy Head of the Civil Division found that there was a bad intention by the board to allow another person or company to do similar work of advertising on public service vehicles without giving the applicant a fair hearing. Accordingly, he has ordered government to pay the firm Shillings 60 million as general damages for cancelling its contract, loss of future profits since the company cancelled contracts with clients and also mental stress suffered by the owner of the company. This he said should attract an annual interest rate of 20 percent effective September 2020 until when the money is fully paid.
Justice Ssekaana has also awarded the firm 25 million shillings as special damages which will also attract an annual 12 percent interest rate from the date of filing the suit in 2014 until payment in full.
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