Post Bank sued over Shs401m
Post Bank Uganda Limited head office. PHOTO/FILE/COURTESY.
What you need to know:
- Acting through Kiboijana Kakuba & Company Advocates, Converge System avers that the software was to be installed within three months from the signing of the contract at a sum of Shs401.9m.
A computer software installing company has sued Post Bank seeking recovery of more than Shs401.8m in unpaid fees for software services.
In a case filed before the Commercial Division of the High Court, Converge System Limited claims that on or about December 4, 2018, it executed a contract with the Post Bank to supply, install and commission a computer based software system known as International Financial Reporting Standard (IFRS) 9 Impairment Solution) at the bank’s head office in Kampala.
Acting through Kiboijana Kakuba & Company Advocates, Converge System avers that the software was to be installed within three months from the signing of the contract at a sum of Shs401.9m.
As per the requirements of the contract, court documents indicate, Converge System subsequently obtained and furnished Post Bank a performance guarantee in the sum of She401.9m.
The impairment solution software, which Post Bank had contracted Converge System to design, install and commission sought to enable the bank compute the health of loans at any time to provide a report on the performance of particular loans as well as projecting the probable loss from a loan in case of default.
Court documents indicate that Converge System duly designed, installed and commissioned system as contracted and interlinked with a designated computer at the Post Bank within the agreed contract period.
The software company subsequently invoiced Post Bank as per the terms of the contract.
However, Post Bank has in total breach of contract and despite several reminders, failed, neglected and refused to pay the amount of the invoices or any sum at all, causing financial loss to Converge System.
Converge System also claims that Post Bank, despite requests has also refused or failed to release the performance guarantee that they had furnished with the bank before starting on the contract.
Therefore, Converge System is seeking court to enter judgment against Post Bank, force the bank to pay the amount due, damages and cost of the suit.
The case
Converge System Limited claims that on or about December 4, 2018, it executed a contract with Post Bank to supply, install and commission a computer based software system known as International Financial Reporting Standard (IFRS) 9 to track the performance of loans.
