Bitature sued over Shs950 million in contract row

Kampala businessman Patrick Bitature has been sued for allegedly failing to pay $ 256,042 (about Shs953m) for consultancy services on various projects.

The suit was filed by FINICON Group Ltd, a consultancy firm, on December 21, 2018 in the High Court Commercial Division.

The company claims it entered into an agreement with Mr Bitature to provide professional architectural and engineering consultancy services for his projects.

These included construction of a high-end boutique hotel on Summit View Road atop Kololo Hill in Kampala with an investment value of between $5m and $6m.

Court documents indicate that on August 24, 2012, Mr Bitature further entered into an agreement with the firm to provide the similar services for remodelling of an existing residential house on Plot 9, Malcom X Road in Kololo and a project in Ibanda District which involved construction of a hotel and gardens.

“The consultancy services included designing the proposed projects, coming up with the architectural drawings, obtaining all the necessary approvals from the urban authorities and supervision of the works,” the suit documents read in part.

The firm said the two parties agreed that the company would be paid five per cent of the total construction cost basing on the works or services provided at every stage and the contract obligations were duly executed.

However, the company contends that Mr Bitature paid $23,538 (about Shs87m) on October 28, 2014, and refused or neglected to pay the balance of $256,042 (about Shs953.9m).

Through its lawyers, the company is seeking court to order Mr Bitature to pay the balance with VAT at 18 per cent with interest of 23 per cent from the date of breach of payment until payment in full and payment of general and punitive damages.

Mr Bitature was summoned to defend himself within 15 days from December 21 last year.
The file has been allocated to Justice David Wangutusi for hearing.

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