Kabale Municipality yet to settle breach of contract case out of Court

Kampala, Uganda | THE INDEPENDENT | Kabale municipality authorities are still struggling to settle a case of breach of contract with a prominent businessman Cephas Birungi over the sale of the municipality yard.

Authorities in January 2020 sold off the yard located in the central division along Mbarara road to Birungi, at 1 Billion Shillings. The yard used to host works offices, Health center II, Education department offices, and a store. All the items impounded by municipal law enforcement officers would also be stored in the yard.

Municipality authorities claimed that the sale was aimed at raising funds to facilitate the construction of staff houses at Kamukira health center IV and the construction of a structure at Municipality gardens to host a health center II.

The sale caused an uproar among the public who accused the municipality of selling a vital area that would in the future act as a bus and taxi park or host another commercial use for the municipality.

However, Birungi later accused municipality authorities of deliberately refusing to hand over the certificate of title and physical plan. He later filed a civil suit before Kabale Magistrate Court accusing the municipal council of breach of contract.

Birungi also wants the municipality to refund him with a 24 percent interest. He also wants the municipality to compensate him with shillings 500 million as reputational damage to him.

A civil servant at the municipality who preferred anonymity says that Kabale municipality had hesitated to hand over the certificate of title and physical plan to Birungi on the argument that he acquired the yard in form of a lease but not purchasing. He says that the municipal leaders fear losing assets in case Birungi wins the case.

Sunday Eric, Kabale Municipality Assistant Town Clerk says that the municipality is yet to settle the case with Birungi over the sale of the yard. According to Sunday, the office of the Attorney General is putting all efforts to have the matter harmonized amicably preferably out of court.

He refused to comment about what exactly caused the misunderstandings between Municipality and Birungi arguing that it may jeopardize court proceedings.

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