UGANDA, Kampala | Real Muloodi News | The Court of Appeal in Kampala has upheld a High Court ruling ordering Imperial Royale Hotel Limited to refund more than USh5.5 billion to the government of Uganda for breaching a contract related to the 2007 Commonwealth Heads of Government Meeting (CHOGM).
The decision, delivered by Justices Moses Kazibwe Kawumi, Irene Mulyagonja, and Oscar John Kihika, found that the hotel was not ready for occupation during the event period, thereby failing to meet its contractual obligations.
The dispute stems from a 2007 agreement between the Ministry of Foreign Affairs and Imperial Royale Hotel for accommodation and conference facilities valued at USD 2.56 million. An audit later revealed that executive rooms were billed at USD 433.65 per night, exceeding the agreed USD 350 rate.
Justice Kawumi, in his ruling, said the evidence showed the hotel’s facilities were incomplete and unfit for occupation from October 26 to November 18, 2007. The court also found the occupation permit unreliable, citing inconsistencies between the document and the actual condition of the premises at the time.
In addition to the refund, the court awarded the government USh800 million in general damages, plus interest and costs.
The ruling reinforces the importance of transparency and accountability in contractual engagements between private entities and government institutions. Legal experts say it highlights how public funds must be safeguarded through strict enforcement of contractual terms.
The Attorney General first filed the case in 2009, seeking recovery of funds for unutilised rooms and incomplete facilities. The latest ruling closes a long-standing legal battle, affirming that contractual noncompliance attracts financial restitution.
The judgment comes as Uganda continues to strengthen its procurement oversight and audit systems to prevent future contract breaches involving public funds.
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