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Gov’t Sued Over Exclusive Rights Given To Company To Import Fuel

The case comes at the time when a Chinese widow identified as Wang Yong Jie sued Mahathi Infra Uganda Limited, Mahathi Infra Services PVT Limited together with their chairperson Yandapalli Ravi Shankar, following the death of 51-year-old Ji Zong Wu whom they were reportedly employing.
Mahathi Infra Uganda Limited's Lawyer Robert Kirunda.


Legal Brains Trust a non-governmental organization is suing the government of Uganda for having signed an agreement with an Indian Company to exclusively operate the business of transporting petroleum products on Lake Victoria.      

Legal Brains Trust says that on July 31st 2015, the government of Uganda and its organs or agencies authorized an Indian Company called Mahathi Infra Services Private Limited and its Ugandan subsidiary Mahathi Infra Uganda Limited to transport petroleum products by barges to and from Uganda in total violation of a bundle of human rights.  

The records show that the agreement which gives Mahathi Infra exclusive rights to   transport the petroleum products on Lake Victoria was signed between the company and Ministry of Energy and Mineral Development for ten years. That is five years from the effective date and another five years of exclusivity from the date of getting an operational license.    

According to the petitioner Legal Brains Trust, the monopoly project is backed by a number of documents which were all reportedly signed secretly in breach of all pertinent laws governing making of such contracts or agreements by government.  

The court documents dated November 19th 2021 include a redacted copy of the agreement, a petroleum facility construction permit dated March 29th 2016, certificate of approval by the National Water Management Authority dated March 18 2016 and a Mahathi Infra letter dated December 2016 requesting project approval from the Ministry of Works and Transport.  

The Project Officer of Legal Brains Trust Anthony Jjumba states in his affidavit supporting the case that despite the stated purpose of this monopoly project, it is disturbing that Parliament and the people of Uganda were unjustifiably bypassed before it was launched and there are no clear safeguards for protecting the independence, sovereignty and territorial integrity of Uganda.  

“Accordingly, it will have the deleterious effect of undermining efforts to build national strength in the political, economic and social spheres and exacerbate out undue dependence on other countries and institutions," reads the affidavit in part.

According to the records, Legal Brains Trust through its lawyers from Centre for Legal Aid  says that in purporting to endorse, approve or authorize the contentious project, the government failed in its constitutional obligation to endeavor to mobilize, organize and empower the Ugandan people equitably to build independent and sustainable foundations for the development of the country.

"Having analyzed the clear provisions of the agreement... ..i have come to the conclusion that its dominant purpose is to cause the respondent/Attorney General to facilitate the unmitigated exploitation of the Ugandan people and their resources by the handpicked company and its special purpose vehicle," adds the affidavit.  

They further contend that by handpicking the aforementioned Indian Company and its subsidiary or affiliates to the detriment of other eligible providers that could have competed for the same service was illegal. This they say  it clearly breaches the public procurement regulations and also undermines the right to equal access to economic opportunity.

"The respondent/Attorney General  flouted its obligation to carry out the requisite due diligence for the selection of a company to develop an oil transport on Lake Victoria and in fact it does not possess a due diligence report that can stand up to scrutiny, or at all”, reads the affidavit by Jjumba.

The documents further show that the “impugned conduct of the respondent/Attorney General  goes beyond the permissible exercise of state power in regulating business, and is blatantly discriminatory, plainly unlawful, and unacceptable and demonstrably unjustifiable in a free and democratic society”.  

In October 2020, President Yoweri Kaguta Museveni who has been championing a shift from road to railway and water transport noted that this (water) transport means is cheap and will help reduce on the country's expenditure on road transport .   

Legal Brains Trust is  now seeking for a declaration that the said agreement/contract, cabinet resolution or directive by whatever name it is called be declared as illegal and an injunction be issued restraining government and its servants from implementing it. The matter is yet to be fixed for hearing.

The case comes at the time when a Chinese widow identified as Wang Yong Jie sued Mahathi Infra Uganda Limited, Mahathi Infra Services PVT Limited together with their Chairperson Yandapalli Ravi Shankar, following the death of 51-year-old Ji Zong Wu whom they were reportedly employing.

But the Company which is represented by Captain Mike Mukula in Uganda has since denied ever employing the deceased Chinese. 

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