Rukungiri Municipality in Trouble over Unsettled debt

medical geneva;”>In the financial year 2011/ 2012, businessman, Jaspa Natukunda of Jaskab investment entered into 4 agreements with Rukungiri Municipal Council for garbage collection and disposal in the eastern, western, and southern divisions.

However, the municipality failed to pay the businessman and in March this year, the two parties signed a memorandum of understanding with Jaskab’s investments to settle the matter out of court.

It is alleged by the contractor that he executed his part in accordance with the terms of the agreements but the council failed to pay him money worth Shs 41, 220,239 which forced him to file a suit at the center for arbitration and dispute resolution at Kampala.

However on learning of the news, municipal council approached him to settle the matter out of court and they signed a memorandum of understanding.

According to the MoU the Shs 41,220,039 was to be paid in three installments and the first installment was to be paid in May and the last before September 2014 but none of the installment has ever been paid.


It is also indicated that the council was to pay Shs 3million as legal fees and costs which was also to be paid according to schedule and agreements as agreed upon.

Consequently, the unpaid sum of the money was to attract an interest of 4% p.a from the date of default until the payment in full and that the second party who is the contractor was at liberty to seek legal redress from courts of law.

Natukunda said that after the council failed to pay him, he instructed his lawyers of Murumba and Matsiko Advocates to institute a civil suit in the Magistrates Court of Rukungiri to recover his money and all the costs he has incurred during the process.

Natukunda said that he wants the court to attach the council assets and have its bank accounts frozen until his money is recovered.

When ChimpReports contacted the Rukungiri Municipality Town Clerk, Andrew Kitaka for a comment, he said he did not want the matter to be discussed with the media.

“We wouldn’t want these issues to be put in the media because we don’t have money now to clear his contract price,” Kitaka said.

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