32 hotels sue South Sudan at regional court over $60mln unpaid bills

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Thirty-two hotels in Juba have sued the South Sudan government at the East African Court of Justice over unpaid bills of over $60 million dating back to 2021.

In the case, filed at the First Instance Court by the Pan African Law Chambers, the group of hotels and apartments, which provided services to officials of the National Security Service, the Office of the Vice President and the peace mechanism, accuse the National Transitional Committee under the Office of the Presidential Adviser on National Security of failing to settle the claims.

The hotels moved to the EACJ on December 31, 2024, seeking over $60 million in unpaid bills, penalties and general damages, after more than three years of waiting.

The applicants had offered hotel and catering services to the government officials and guests in terms of the National Transitional Committee.“The case is anchored on failure to comply with a letter from the chair of the National Translation Committee (NTC) and the Office of the Minister for Justice (the Attorney-General) to meet the government obligation and, where a government fails to meet its lawful obligations, it is a violation of the Treaty (of the EAC) by failing to adhere to good governance,” the application reads.

The Attorney-General, in response to a letter dated December 23, 2024, to the lawyers representing the plaintiffs, admitted and requested an amicable settlement but no payment was made, prompting them to go to court.“The act and conduct of the respondent are an infringement and violation of the Treaty for the Establishment of the EAC, in particular the principles of good governance, rule of law, accountability, transparency and social justice,” the applicants say.

The hotels are Palm Africa, World Focus Hotel, Juba Crown Hotel, Lan Mark, James Hotel, Royal Palace, Royal Hotel, Pyramid, MacDowell Apartment, La Carte Toscana Hotel and Referendum Hotel.

Others are Oasis Camp Limited, Radas Gen Trading Apartment, Red Ocean Gen Trading Apartment, Hamza Holdings, Aron International Hotel, Yam Hotel, Quality Hotel, Transit Hotel, Star Hotel and Virgin Hotel.

New East International, HaiMauna Classic Hotel, Nile Beach Hotel, Kerena Hotel, Dembeshi Hotel, Oasis Camp, Classic Marat, Pyramid, Palm Africa, Juba LandMark Hotel and Grand Hotel Juba are also part of the application.

They are demanding an accommodation bill totalling $27.4 million plus interest for three years amounting to $35.6 million.“The respondent has failed to honour its commitment and obligations and this has caused the applicants financial losses and affected delivery of their legal obligations to their landlords, shareholders, and other damages,” the applicants say.

The businesses say they have been harassed and intimidated by the security guards in the President’s office whenever they have tried to make demands.“The applicants aver that the Attorney-General has failed to ensure that the government officials of South Sudan carry out their duties to ensure protection and security of investments and to foster trade within the EAC as envisaged under the EAC Treaty,” they say.

“The AG South Sudan is vicariously liable for the losses, sufferings and damages incurred by the petitioners as a result of this obligation breached.”The Attorney-General and Minister for Justice have 45 days to respond.