Lawyers file additional evidence in Vinci Coffee case

Two lawyers who petitioned the High Court seeking to quash an agreement between the Government and Uganda Vinci Coffee Company Limited have filed additional evidence to support their case.

In April Henry Byansi and Michael Aboneka challenged the agreement signed by Ramathan Ggoobi, the Secretary to Treasury on behalf of the government, and Enrica Pinetti, an Italian investor and the Uganda Vinci Coffee Company Limited board chairperson on February 10, 2022, on grounds that it is illegal and irrational.

READ: Who’s that girl? Peeling mask on Enrica Pinetti

The lawyers want the court to declare that the actions of the Minister of Finance and Economic Development to handpick Uganda Vinci Coffee Company Limited in disregard of able Ugandan firms to solely manage the coffee business, set coffee prices and related products, is an infringement on the right to own property and open competition as well as economic rights of coffee farmers in the country.

The agreement grants Uganda Vinci Coffee Company Limited exclusive rights to buy Uganda’s coffee before the government can look at other players. The Company is also exempted from paying taxes such as Import duty tax, Stamp duty, value-added tax, National Social Security Fund, and Pay as You Earn for ten years. The company also reserves the right to determine the coffee prices in the country on top of enjoying electricity subsidies among other benefits.

ALSO READ: Woman behind Lubowa hospital project

In their new evidence, the lawyers submitted to Court a report, findings, and recommendations of the Sectoral Committee on Trade, Tourism and Industry of the Parliament recommending the termination of the agreement under contention.

Last month, Parliament unanimously called for the termination of the agreement because it contravened the Constitution and other tax laws.

The lawyers now want Court to look into the report of Parliament and give their findings a legal effect by going ahead and quashing the agreement.

“We have since filed an additional affidavit which contains a report of Parliament where recommendations were made that this agreement was signed in the bleach of law and therefore must be terminated by the government. But we are seeing unwillingness from the government, specifically from President Museveni to follow what Parliament said. That is why we want the court to determine and quash the agreement,”  Mr Michael Aboneka one of the lawyers said. 

DON'T MISS: How Lubowa project left taxpayers Shs359b poorer

While delivering the State of the Nation Address on Tuesday, President Museveni admitted that he knew that Ms Pinetti had no experience in the coffee industry, but that he was convinced that she could get investors to do it after he failed with other known processors around the world.

The case has been fixed for a hearing on June 24.