Overview:
It came after the government terminated his contract as the CEO of Uganda Airlines in mid-February this year.
The Industrial Court will now proceed to hear the case between Uganda Airlines and its former Chief Executive Officer Cornwell Muleya after the two failed to reach a settlement at the labour office.
According to Celestine Muhumuza, a senior labour officer in the Labour ministry, Uganda Airlines deliberately refused to show up for two mediation meetings, on April 12th, 2022, and May 2, 2022.
Muhumuza notes that a substantial question of law or fact arose in the proceedings, which his office can’t resolve. Muhumuza notes that Muleya worked as CEO of Uganda Airlines and was sent on forced leave by the Chairperson Board of Directors on allegations of several mismanagement issues.
“However, it is alleged that he was not given the opportunity to defend himself on the allegations put against him,” reads the letter. It is on this ground that he “desires the court to determine and dispose of the dispute.”
Muleya lodged his complaint reference number LD.07.04.22 under Employment Act 2006 at the Wakiso Labour office on April 4, 2022. It came after the government terminated his contract as the CEO of Uganda Airlines in mid-February this year. Muleya’s woes started on April 21st, 2021 after Works Minister Edward Katumba Wamala sent him and 12 other top officials on forced leave.
The minister eventually suspended the officials on the orders of President Yoweri Kaguta Museveni to pave way for investigations into allegations of financial mismanagement, collusion, and nepotism in staff recruitment among other issues. Muleya served as CEO from 2019 to May last year.
He now wants the government to reinstate him or pay him over Sh3.5 billion in terminal benefits. Through his lawyers, Muwema and Co. Advocates, Muleya accuses the government of unlawfully suspending and later terminating his employment contract.
On March 28, the law firm wrote to Waiswa Bageya, the interim board chairman of Uganda Airlines and Permanent Secretary Ministry of Works protesting Muleya’s dismissal.
Muleya claims that the interim board issued him a notice to terminate his contract on February 15, 2022, in disregard of the due process.
His lawyers say Bageya who authored the notice to terminate Muleya’s contract, did not disclose the reasons for the decision. “His contract of employment did not have a termination clause and Muleya was also “never heard in any disciplinary proceedings,” reads the letter.
Adding that, “the purported suspension and termination of our client’s services as the Chief Executive Officer of UNACL was done contrary to all due process and the law. It presents a case of witch-hunt wrought with malice and it reeks of irregularities.”
The law firm warned of legal action should the government fail to reinstate Muleya as CEO. They also indicated that they would be seeking the terminal benefits for their client amounting to Shillings 3,545,186,318. This includes salary arrears of Shillings 126 million for February 2022, Shillings one billion for reputation damages and Shillings 1.2 billion for loss of expectation interest in employment among other claims.
The board accused Muleya of alleged failure to supervise and curb corruption of staff under his watch, delayed operation of the Airbus A330-800Neo and the self-handling project, gross procurement malpractice, financial mismanagement, and unethical human resource practices in recruitment. In March 2022, Attorney General Kiryowa Kiwanuka responded to Muwema’s letter to the interim board chairman and dared him to go ahead and sue the government.