Kampala — A private security company - Protectorate S.P.C - has sued the Ministry of Agriculture over failure to pay Shs173m for security services.
According to court documents filed before the Commercial Court, Protectorate S.P.C claims that on July 1, 2014 it entered into a contract with the Ministry of Agriculture to guard its premises in Namalere in return for an annual payment of shs3.54m.
However, government has since breached the contract and refused to full pay what is due despite several reminders.
After the contract had expired, documents indicate, it was renewed with new responsibilities, among them, guarding other facilities such as the ministry's Ice Plant in Bugolobi, the permanent secretary residence on Wampewo Avenue and the workshop in Namalere at Shs864m
Protectorate S.P.C contends that it went ahead to perform its part of the contract but the Ministry of Agriculture has refused to pay for the services.
"The plaintiff [Protectorate S.P.C] avers that it has severally invoiced the defendant [Ministry of Agriculture] who have sometimes paid but has on several occasions not paid," court documents indicate.
This has subsequently, Protectorate S.P.C says, led to accumulated non-payment amounting to Shs173.46m.
The security firm also claims to have issued a statutory notice to the ministry which was ignored.
Therefore, it is seeking an order of payment of Shs173.46m in addition to general damages, interest of 20 per cent per annum from the date of cause of action till payment is made in full and the cost of the suit.