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Sacked Uganda Airlines CEO wants over Shs3.5bn for termination of his contract  

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Former Uganda Airlines Chief Executive Officer (CEO) Cornwell Muleya has threatened to sue the airline over unlawful suspension and termination of his employment contract.

According to a notice dated March 28 from his lawyers of Muwema & Co Advocates, Muleya said there was no factual, contractual or legal basis for the impugned action of disregarding the due process when they unlawfully suspended and subsequently terminated his contract of employment.

“We need to point out at the outset that your conduct in this case smacks of impunity and complete disregard of the law. It is therefore not protected by the immunities of public office which would otherwise attach to acts done in good faith. You will therefore do well to treat this as a notice of intended personal legal action against your person as well,” reads part of the notice from Muleya’s lawyers.

The Works and Transport Minister, Gen. Edward Katumba Wamala suspended Muleya and 12 other top officials on April 21, 2021, on the orders of President Yoweri Museveni to pave way for investigations into allegations of financial mismanagement, collusion, and nepotism in staff recruitment among other issues.

According to Muleya, the said suspension was illegal on two grounds; the Permanent Secretary of the Works ministry had no power to suspend him under the governance structure of the airline and that the power vests exclusively in the Board of Directors. Secondly, the suspension was illegal because it exceeded the maximum period of four weeks allowed under Section 63 (2) of the Employment Act, 2006.

“Our client was not accorded an opportunity to respond to the allegations nor was he heard before sending him on leave of absence. The above also contravened Regulation 1 (11) (d) of the Disciplinary Code under Schedule 1 of the Employment Act, 2006 which entitles an employee faced with a disciplinary action to a reasonable opportunity to state his case,” the notice reads.

“Despite the above glaring irregularities, our client was directed to keep away from the company premises without any lawful or just cause. Moreover, no promised investigation into alleged mismanagement by our client ever took place. Infact, no investigation report has ever been produced to this end.”

Muleya explained that whereas his employment contract provided for dismissal from employment on grounds of serious misconduct or gross negligence, it did not contain a termination clause..

He said due to his exceptional performance, his employment contract was extended on the same terms for another period of eighteen months from March 1, 2021 before the suspension.

“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 clear case of a witch-hunt wrought with malice and it reeks of illegalities,” the notice adds.

Muleya now wants Shs 3,545,186,318 in damages and other costs including salary arrears and gratuity among others.

He also wants immediate reinstatement as the Chief Executive Officer of the company and an apology for the material inconvenience, reputational damage and loss.

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