New Vision (Kampala)

Uganda: Shell Sues Standards Body

Edward Anyoli

2 July 2009


Kampala — SHELL has sued the Uganda National Bureau of Standards (UNBS) demanding sh768.1m over the closure of its outlets.

The money is for general damages, costs and interests for the closure of outlets at Kaazi, Kibuye and the main depot in Industrial Area in Kampala for one- and-a-half days on January 29, 2009.

UNBS closed the outlets saying the products were uncustomed and adulterated.

Shell also wants compensation for defamation and a declaration that UNBS was negligent in carrying out its obligations contrary to the contract signed.

Through Sebalu and Company Advocates, Shell argues that UNBS through its official, Dr. Ben Manyindo, said in the media that the company was involved in smuggling fuel and had been fined for that.

Shell adds that due to UNBS's negligence, the Uganda Revenue Authority issued three tax assessments of taxes on imports of petroleum products yet that was not required.

Shell claims the bureau damaged its reputation by saying their fuel had a low concentration of marker, which implies that either Shell evaded taxes or the fuel was adulterated.

Under the petroleum marking and quality control regulations instrument of 2008 and the contractual undertaking, UNBS is mandated to mark all petroleum imports.

Shell signed a contract with UNBS to carry out a monthly surveillance check of at least 30% of Shell's distribution network and issue a report.

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