Shell sues Minister Otafiire over contract

Shell Uganda has dragged the minister of Justice and Constitutional affairs Kahinda Otafiire and his company, Benzina(U) Ltd over a breach of contract to the commercial court.

In the suit, Shell contends that in November last year, Otafiire received 1.2bn shillings from it after entering into a lease agreement for land located in FRV304 folio, Plot No.174.

Through Ssebalu and Lule advocates, shell claims that Benzina asked that Otafiire be the lead negotiator in the agreement and also mandated him to receive the agreed dround rent.

Otafiire in his letter dated 19th of last month allegedly conceded receiving the said money and dispensing it to Benzina accounts.

The aggrieved Petroleum Company avers that Benzina refused to vacate the land and started throwing out shell agents from the petrol station.

Shell now seeks for an order of specific performance of the said lease agreement or alternatively receives compensation for damages for breach of contract and also returns the paid money.

Shell claims to have lost income at a minimum monthly rate of 8m shillings due to the non use of the land from the first day of last month when the agreement commenced.

It seeks 1.2bn shillings compensation in special damages also court to order respondents to pay costs of the suit.

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