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Coffee deal lands govt, company in court
Lawyers Micheal Aboneka (right) and Henry Byansi address the media at High Court on April 25, 2022. PHOTO / ABUBAKER LUBOWA
What you need to know:
- The applicants contend that the agreement gives monopoly to UVCC to control the coffee market hence eliminating other players like small scale farmers, middlemen and co-operative unions.
A section of Lawyers have asked court to declare unlawful- the agreement signed between government and coffee exporter, Uganda Vinci Coffee Company Limited.
The respondents in this case is the Attorney General, Mr Kiryowa Kiwanuka and Uganda Vinci Coffee Company (UVCC) Limited.
In the case filed before the high court in Kampala on April 25, lawyers Mr Henry Byansi and Mr Michael Aboneka want “court to declare that the actions of the minister of Finance, Planning and Economic Development of secretly handpicking UVCC at the detriment of other able Ugandan firms to singly manage the production, exportation and pricing of coffee beans and related products is illegal, null and void.”
On February this year, the minister of finance Matia Kasaija signed an agreement with the coffee exporter for the production and export of coffee products which the two lawyers say is illegal, unfair, arbitrary, highhanded, irrational, ultra vires, null and void.
The two advocates are seeking for a court declaration that “the failure of the minister to make adequate consultations and or seek the necessary legal approvals from Uganda Revenue Authority (URA), National Social Security Fun (NSSF), the Directorate of Immigration and Citizenship before purporting to waive taxes, NSSF contributions and work permits in favor of the coffee company is an abuse of power and a usurpation of their constitutional and statutory powers, unfair to Ugandans.”
Finance minister Matia Kasaija (centre) exchanges documents with Ms Enrica Pinetti (left) after UVCC signed an agreement with the Finance ministry to establish a coffee processing plant in Uganda, on February 10. PHOTO/FILE
The applicants contend that the agreement gives monopoly to UVCC to control the coffee market hence eliminating other players like small scale farmers, middlemen and co-operative unions.
According to court documents, “the impugned deed of amendment and restatement of the project implementation agreement in its entirety violates the guiding principles of creating a competitive, equitable, commercialized, liberalized and sustainable coffee subsector contrary to the National Coffee Policy, 2013, National Coffee Act, 2021.”
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They are seeking for a declaration that the minister’s action of secretly handpicking UVCC Limited at the detriment of other able Ugandan firms “is a violation of Anti-Trust and Laissez-faire principles, liberalisation.”
The lawyers further want a court declaration that “the failure of the minister to follow all legal and administrative processes and to make adequate consultations with the solicitor general, ministry of Agriculture, Animal Industries and Fisheries, Uganda Coffee Development and other related agencies before purporting to execute the impugned deed of amendment tantamount to abuse and usurpation of powers.”
