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Court Blocks Fort Portal Street Parking Contract :: Uganda Radionetwork
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Court Blocks Fort Portal Street Parking Contract

The proprietor of Globe world Engineering Uganda Limited Joseph Kizza dragged the municipal council to court for contravention of their agreement by failing to remit the companys Valued Added Tax amounting to 3.2 million Shillings.
Interim injuction order issued by High Court in Fort Portal

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High Court in Fort Portal has issued an interim injunction stopping Fort Portal Municipal Council from awarding a new contract for the management of street parking.

The injunction follows a suit by Globe World Engineering Uganda Limited, the company that has been running the contract.

The proprietor of Globe world Engineering Uganda Limited Joseph Kizza dragged the municipal council to court for contravention of their agreement by failing to remit the company's Valued Added Tax amounting to 3.2 million Shillings, covering the months of September, October, November and December 2017.

Kizza says that he was unable to reapply for the contract this year because URA refused to clear him on account that he failed to fully clear his income tax obligations.

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But Clovis Kalenzi, the Senior Assistant Town Clerk South Division Fort Portal Municipality says that it is not Kizza's duty to determine when VAT is paid to URA.

"Our contract with Kizza states that he should pay a monthly fee of 3.3 million Shillings, VAT inclusive. But he has been defaulting and council demands from him 12 million Shillings now. URA and council are both government agencies and it is not his work to see that VAT is paid. We may delay to pay but we always pay," Kalenzi says.

Kalenzi says that they may not recommend Kizza for the contract again because he does not pay on time. He adds that they are ready to face him on August 30, 2018, when court will decide on the case.

Fort Portal High Court Judge Lillian Mwandha issued the injunction stopping the award of the tender until the main suit is disposed of on August 30.

Earlier, Joseph Kizza was accused of issuing Fort Portal Municipal Council with forged receipts. According to the municipality, Kizza presented receipts between January and February this year, indicating that he had paid 5.4 million Shillings to the municipal account in Housing Finance Bank.

But Kalenzi said that the money is not reflected on the division's bank statement.

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