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By JOSHUA ARLO
YAMA Security Services (YSS) has been ordered by the National Court to
reimburse the National Capital District Commission the amount of K2
million which the city government paid the company in 2002.
The K2 million was part of a payment amounting to K8 million which the
security company, owned by former Usino-Bundi MP Peter Yama, had claimed
from NCDC for alleged breach of contract.
YSS entered into a four-year contract with NCDC in 1998 to provide
security service to the city government.
However, the contract was terminated on Sept 9, 1999, following a change
of administration at the City Hall.
YSS went to court to claim damages for breach of contract, an action
contested by NCDC.
YSS sued for K7,513,835.84 with interests.
In 2002, the National Court ruled that NCDC breached its contract with
YSS.
NCDC paid out to YSS the amount of K2 million as partial payment.
However, a new administration at City Hall decided to appeal this
decision.
Several other litigations between the two parties followed, one of which
questioned the deed of release signed by NCDC under former governor
Philip Taku and whether the Public Finance Management Act was followed
in awarding the contract.
The question of the validity of the deed of release was argued on March
9, 2004. On April 30, 2004, the National Court ruled that the deed was
valid and enforceable.
NCDC appealed the decision on May 4, 2004, at the Supreme Court, which
upheld this appeal and ruled that Section 61 of the Public Finance
(Management) Act was breached and therefore, the deed of release was
null and void.
NCDC followed up with an application asking for the return the K2
million paid out to YSS.
 
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