KCCA Contests Shs 730M Award
Kampala Capital City Authority (KCCA) petitioned the\r\nCommercial Court seeking orders to nullify an arbitral award of UGX 732 Million\r\nit was recently ordered to pay to Nalongo Estates Ltd, the managers of\r\nCentenary Park in Kampala. The arbitral award was given to the firm on\r\nSeptember 13 to cover the cost of demolition of its structures by KCCA\r\nenforcement officers last year (2012).
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The\r\norders were made by an arbitrator, Mr Robert Kafuko Ntuyo, upon hearing Nalongo\r\nEstate Ltd’s grievances. He observed that there was no evidence in form of\r\nminutes authorizing KCCA to terminate the contract with Nalongo Estate Ltd.
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However,\r\nMr Charles Ouma, the deputy director litigation services at KCCA disputes the\r\nruling saying it ambiguous. Mr Ouma said that the arbitrator did not decide on\r\nthe substance of the dispute according to the consideration of justice and\r\nfairness in contravention of section 28 (4) of the Arbitration and Conciliation\r\nAct, he further stated that the arbitral award was vague, ambiguous and\r\ncontradictory thereby making it unjust and incapable of implementation.
Posted 17th, October 2013
