Kampala– Two lawyers have filed a suit before the High Court -Civil division in Kampala seeking to nullify an agreement between the government of Uganda and an Italian coffee company.
The two advocates; Henry Byansi and Michael Aboneka in their suit claim they are particularly aggrieved by the actions of the finance minister Matia Kasaijja who signed the agreement on behalf of Ugandans with Uganda Vinci Coffee Company Ltd without making necessary consultations.
The applicants contend that the agreement gives monopoly to Vinci coffee company to control the coffee market hence eliminating other players like small scale farmers, middlemen and co-operative unions.
The activists also say that the action violates the right to a free open competition and the right to own property and hence asking court to set aside the said agreement signed on 10th Feb 2022 and also stop any government official from implementing it.
These also fault the finance minister for omitting to consult the Solicitor General, the agriculture minister, the Uganda Coffee Development Authority and the Uganda Revenue Authority and National Social Security Fund before exempting the company from paying taxes.
The court is yet to summon the Attorney General and Uganda Vinci Coffee Company Limited who are listed as respondents in this suit to file their defense before the matter is allocated to a Judge for hearing.
According to a coffee document dated February 10, 2022, Ramathan Ggoobi the Secretary to Treasury signed on behalf of government while Enrica Pinetti, an Italian investor and the Board Chairperson of Uganda Vinci Coffee Company Limited on behalf of the company.
The company was given free land in the Industrial and Business Park at Namanve measuring 27 acres after it indicated its capability of establishing a coffee processing facility in Kampala. It will be given exclusive rights to buy all Uganda’s coffee and its concession will end in 2032, but subject to renewal.
The company agreement with government has provisions to exempt the Vinci Coffee Company from paying taxes including Income tax, Pay As You Earn, Excise duty, and NSSF. This document has provisions that seek to subsidize this company giving them a special tariff of 5 cents per unit in terms of electricity.
