Court to hear 8-year case against UCDA over unclaimed seedlings

Kampala.

High Court in Kampala has set the month of May to hear a case in which a coffee growing company is accusing Uganda Coffee development Authority (UCDA) of breaching a contract for failure to collect and pay for 1,750,000 coffee seedlings.

In 2008, RUTAS Uganda Limited petitioned court claiming that in October 2001, UCDA made an offer for it to develop coffee seedlings for distribution to districts of Mbale, Sironko and Kapchorwa at a cost of Shs200 each.

In the case against the Attorney General (AG) and UCDA, the company says out of two million seedlings developed, UCDA took only 250,000 leaving a balance of 1,750,000 seedlings uncollected and unpaid for, which made them overgrow and became useless.

Through its lawyers, Luyimbazi, Nalukoola Advocates, the company states that it obtained a bank loan to develop two million Arabic Coffee Seedlings but UCDA failed and or refused to collect them as agreed and nor did the authority pay for the said uncollected seedlings.

In his defence, the AG contends that he has no knowledge of any breach of contract and specifically denies all allegations made by the company.

Presidential pledge
According to court documents, RUTAS Uganda Limited woes with UCDA originated from a June 2001 presidential pledge. The President unveiled a government plan to plant 300 million coffee trees by June 2006 in order to harness the country’s wealth and potential and stop it from being a begging nation.

It is alleged that UCDA was the channel through which funds to various firms and individuals who were contracted to develop the coffee seedlings would pass.

UCDA contends that it acted on instructions of government to implement coffee replanting under the strategic intervention programme and as such not liable to the plaintiff.

The authority also adds that the functions for which it was enacted are post-harvest and therefore the alleged actions to do with seedlings are beyond its powers.

However, in an October 30, 2001 letter, UCDA wrote confirming that they will purchase all the Arabica planting material that Rutas Uganda limited would raise for the purpose of planting in the three districts.

“Each seedling will be bought at Shs200. The seedlings should therefore be ready during that period. Our payment is made after farmers have acknowledged receipt of the seedlings through an elaborate modality,” reads the letter to the company managing director, Mr Martin Rutangye. Justice Henrietta Wolayo of the Civil Division is handling the case.

Important tit bits
Contract. The Attorney General and UCDA contracted RUTAS Uganda Limited to grow two million coffee seedlings which the government would purchase from the plaintiff through UCDA at Shs200 each
Unpaid. Rutas Uganda Limited bought land in Mbale District and grew the two million seedlings but UCDA took and paid for 250,000 seedlings leaving a balance of 1,750,000 untaken and unpaid for.