High court awards Sh183b To Pastor Daniel Walugembe, the proprietor of DMW Uganda Limited.
Justice Bashaija K Andrew under the civil division has awarded Pastor Daniel Walugembe the proprietor of DMW Uganda Limited shs 183 billion to act as compensation for damages incurred from being stopped from mining sand in Lwera.
The Parliament through its natural resources committee stopped DMW company from continuing with sand mining after various people raising environmental issues and the MPs said there was a need to protect Lake Victoria since the activities that were being carried out by DMW a company owned by Pastor Daniel Walugembe had caused environmental problems.
This made NEMA respond by cancelling farming, fishing and mining licenses it had given to pastor Daniel Walugembe of DMW Company.
Parliament later also directed NEMA to cancel out licenses of other companies including Chinese companies that had not done an environmental assessment of their activities and those that were doing contrary to what they had licensed to do.
After the directive DMW Company Limited had its license cancelled out by NEMA. DMW was doing sand farming and sand mining on 69 and 50 hectares of land at Kakwanzi village, Kitti Parish, Bukamba Sub- County in Kalungu District.
DMW Uganda Limited petitioned the high court in 2019 challenging the parliamentary directive that was banning them from sand mining in Lwera.
Justice Bashaija heard the case and on Wednesday 20th may 2020 issued his judgment in which he blames NEMA for acting improperly and illegally in away it when cancelling out the of the license of DMW Limited.
“From the above well corroborated and uncontroverted evidence of the plaintiff, it is quite clear that the 2nd defendant (NEMA) erroneously and in breach of the plaintiff’s permit rights, halted the plaintiff’s sand mining activities with or under the directives of the committee of parliament on Natural resources without any justification at all,” justice Bashaija said.
Justice Bashaija said that DMW had complied with all the necessary conditions of the permit according to the evidence presented and cancelling out of there permit was illegal.
The judge also indicates that DMW was in contract with other companies that were supposed to supply the sand and after the cancelling out of there permit they lost business earnings.
“To the above latter effect, where there is a breach of contract, the party who suffers the breach is entitled to compensation from the party who is in breach. Under section 61(3) (supra) where the obligation similar to that created by contract is incurred and is not discharged, any person injured by the failure to discharge it is entitled to receive the same compensation from the party in default,” justice Bashaija said.
After the judgment, the civil division of high court ordered the government to pay Pastor Daniel Walugembe (DMW Limited) 182 billion shillings for cancelling out of their license and the court also awarded 1billion shillings for general damages and 3 billion for special damages.