Uganda News

Muleya, the former CEO of Uganda Airlines, is seeking Shs 3.5 billion in compensation for a contract termination.

Cornwell Muleya, the suspended Chief Executive Officer of Uganda Airlines, has stated that he will file a lawsuit against the airline for the illegal suspension and termination of his job contract.

Muleya argued there was no factual, contractual, or legal basis for the airline’s action of violating due process when it wrongfully suspended and then terminated his contract of employment through his lawyers Muwema & Co Advocates.

Muleya is seeking Shs 3.5 billion in damages, payment arrears, and other charges from the airline collapse, which would result in a court battle, according to a notice from his lawyers dated March 28, 2022.

He claimed that he was not given an opportunity to react to the claims and that he was not heard before he was placed on leave of absence.

“Despite the aforementioned obvious inconsistencies, our client was ordered to leave the company premises without any lawful or good grounds.” Furthermore, our client’s claimed mismanagement was never investigated as promised. In reality, no investigation report to this end has ever been issued,” Muleya argued through his lawyers.

Gen Edward Katumba Wamala, the Minister of Works and Transport, suspended a number of senior executives at the airline for at least three months in April 2021.

On President Museveni’s direction, this was done to clear the way for investigations into charges of financial malfeasance.

The CEO Muleya was one of the 13 top executives who were affected.

Muleya indicated that, while his job contract allowed for termination in the event of serious misbehavior or gross carelessness, it did not provide for dismissal.

He stated that his work contract was extended on the same terms for another eighteen months beginning March 1, 2021, prior to the suspension, due to his great performance.

He claimed that his suspension was unconstitutional since it lasted longer than the four-week term authorized under Section 63 (2) of the Employment Act of 2006.

“Despite the evident illegalities, in your letter dated August 20, 2021, you purported to extend our client’s unlawful suspension for another three months.

It’s important to note that the law does not allow for extensions.

Muleya is now requesting, through his lawyers, that he be reinstated as the company’s Chief Executive Officer immediately.

He demands an unconditional apology for the financial hardship, reputational harm, and loss he has endured.

He is seeking Shs 3.5 billion in damages and other charges, including wage arrears, from the airlines.

“You sent the aforementioned termination notice knowing full well that our client had never been heard in any disciplinary proceedings.” Furthermore, you were aware that our client’s employment contract lacked a termination clause,” his lawyers said.


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