UGANDA: High Court orders freezing of Busia bank accounts over debts

By David Awori

The bank accounts for Busia Municipal Council have been frozen following a court order over debts amounting to more than Shs60 million.

The Commercial Division of the High Court, in a November 19 order, directed the manager Stanbic Bank Busia branch to freeze all the accounts of the municipality and pay Shs63.5 million to Unato Investments, a taxi drivers association.

The action is expected to affect service delivery to many people living in the border town.

Mr Hassan Kamba of the Kamba and Company Advocates, who executed the court order, told the Daily Monitor that the debt followed the 2008 unlawful termination of a contract held by Unato Investments by the then town 

council authorities.

Insufficient payment He said the council, after losing the case, had paid only Shs28 million to his client and Shs12 million as legal fees, out of the required Shs96m.

The lawyer warned that in case the money was not paid, he would file an application seeking the attachment of the municipality’s road equipment and garbage trucks recently given by Nema and the Local Government ministry.

Efforts to contact the town clerk, Mr Daud Chwa, and his deputy were futile as the two were out of office. 

However, the mayor, Mr Micheal Mugeni, said they had paid all the court costs and wondered why the accounts were frozen.

Source: Daily News (11/12/2012): http://www.monitor.co.ug/News/National/High-Court-orders-freezing-of-Busia-bank-accounts-over-debts/-/688334/1640952/-/w4e3fs/-/index.html