Mavid Pharmacy proprietor Suleiman Bukenya has appealed to President Museveni to intervene in a dispute over nearly Shs500 million that he says was agreed upon during court-supervised mediation but has not been paid.
Bukenya says the money was part of a settlement reached between Mavid Pharmacy and Royal Group, a Pakistani company, following a long-running commercial dispute that ended in mediation in December last year.
Speaking to journalists at Kigo, Bukenya said the failure to receive the money had left his company struggling to meet its financial obligations, including payments to the National Social Security Fund (NSSF).
He said Mavid Pharmacy had been summoned to answer a case relating to the alleged failure to remit workers’ social security contributions and was expected to appear in court next week.
“We have been sued by NSSF and we are to appear next week. If we had received our money as the court had directed, we would not be treated as criminals,” Bukenya said.
According to Bukenya, Mavid Pharmacy owes NSSF close to Shs600 million in unremitted contributions and penalties.
He argues that receiving the money agreed upon during mediation would have helped the company address the outstanding obligations.
Bukenya said the dispute over the settlement had dragged on for too long, despite the involvement of Justice Geoffrey Kiryabwire, whom he identified as the court mediator.
He claims that Kiryabwire directed that the money be released to Mavid Pharmacy, but the payment has not been made.
Bukenya questioned where he should seek redress if the court process intended to resolve the dispute had failed to deliver the agreed outcome.
“When there is an issue with government, people go to the Attorney General. The same applies to Parliament. But in a case of judicial indiscipline, where do people go?” he asked.
He maintained that the nearly Shs500 million was not a fresh award or an additional reward to his company, but money that the parties had deposited as security during the dispute and which he says was subsequently directed to be released to Mavid Pharmacy.
“This money is not just a reward, but rather the deposited sum that was directed to be given to us,” Bukenya said.
The dispute between Mavid Pharmacy and Royal Group dates back several years and arose from a business relationship involving the supply and manufacture of pharmaceutical products.
Mavid Pharmacy began operations in 1993, dealing in medicines sourced from Pakistan, China and India.
In 2009, the company became an agent of Royal Group, a Pakistani company, and traded on its behalf. Under their business arrangement, Mavid Pharmacy also had a contract to manufacture medicines for Royal Group.
However, the manufacturing arrangement was later cancelled, triggering a disagreement over the financial consequences of the termination.
Bukenya says Mavid Pharmacy had already exported raw materials intended for the manufacture of the medicines, leaving the company exposed to financial losses when the arrangement collapsed.
Royal Group, in turn, sought compensation from Mavid Pharmacy over the alleged financial losses arising from the dispute.
The matter went through court proceedings and several appeals before the parties were directed to pursue mediation as a way of resolving the disagreement.
According to Bukenya, the mediation held in December resulted in an agreement involving nearly Shs500 million, which he says should have been released to his company.
He is now asking Museveni to intervene and help ensure that the settlement is implemented.
Mavid Pharmacy was authorised to manufacture liquid pharmaceutical products, including solutions and suspensions for both external and internal use.
However, the precise terms of the mediation settlement, the status of the deposited funds and the reasons for the delay in payment could not be independently established from the information provided.
