Appellate judges have ordered Imperial Royale Hotel Ltd to return 5.4 billion shillings to Ugandan authorities after finding the facility failed to meet obligations during preparations for a 2007 Commonwealth summit. The three-member panel determined that the Foreign Affairs Ministry deserves compensation for accommodations and meeting spaces that remained incomplete past agreed deadlines.
Justice Moses Kazibwe Kawumi authored the 32-page decision rejecting the hotel's challenge to an earlier verdict. The facility had committed through a June 2007 contract to provide delegate housing valued at 2.56 million dollars by late August that year. Independent auditors discovered construction continued through mid-November, leaving promised spaces unavailable when needed. Judges dismissed arguments citing security barriers or an October occupancy certificate as insufficient defenses against breach of contract claims.
The appellate court maintained an additional 800 million shillings in damages with accumulated interest. Combined penalties against businessman Karim Hirji's property exceed 6 billion shillings unless the Supreme Court intervenes. Justices Irene Mulyagonja and Oscar John Kihika supported the ruling affirming government rights to reimbursement for services paid but never delivered during the Commonwealth Heads of Government Meeting.
Justice Moses Kazibwe Kawumi authored the 32-page decision rejecting the hotel's challenge to an earlier verdict. The facility had committed through a June 2007 contract to provide delegate housing valued at 2.56 million dollars by late August that year. Independent auditors discovered construction continued through mid-November, leaving promised spaces unavailable when needed. Judges dismissed arguments citing security barriers or an October occupancy certificate as insufficient defenses against breach of contract claims.
The appellate court maintained an additional 800 million shillings in damages with accumulated interest. Combined penalties against businessman Karim Hirji's property exceed 6 billion shillings unless the Supreme Court intervenes. Justices Irene Mulyagonja and Oscar John Kihika supported the ruling affirming government rights to reimbursement for services paid but never delivered during the Commonwealth Heads of Government Meeting.
