KAMPALA, UGANDA: Government of Uganda, and the Uganda Vinci Coffee Company Limited (UVCC) have been dragged to court over the controversial multi-billion coffee deal, this website understands.
Two lawyers; Michael Aboneka and Henry Byansi have petitioned the high court to declare that the agreement between gov’t and UVCC is unlawful, null and void citing unfairness in the deal as it gives the exporter monopoly over the coffee market.
On February this year, Government through 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.
“Court should 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,” the applicants said in a petition filed before the high court in Kampala on Monday, April, 25.
“The failure of the minister to make adequate consultations and or seek the necessary legal approvals from Uganda Revenue Authority (URA), National Social Security Fund (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,” the lawyers’s petition reads further.
The two lawyers are also seeking 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.”
Currently, the Parliamentary Committee on Trade, Tourism and Industry has summoned individuals and entities behind the endorsement of the controversial coffee deal.
The MPs want the officials to explain their role in the agreement the government signed with Uganda Vinci Coffee Company Ltd (UVCC), a private company that was granted exclusive rights to sell and market Ugandan coffee on the international market.
Mr Joseph Kayemba, a coffee dealer, says that the agreement creates a monopoly on who farmers should sell their coffee to.
“It also prohibits export of any premium coffee until Vinci has been supplied to its satisfaction. That will lead to collapse of the other coffee trading companies and consequently to loss of livelihoods for those working for the companies,” Kayemba said.
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