32 hotels file lawsuit against South Sudan at regional court over US$60M in unpaid bills

SOUTH SUDAN – Thirty-two hotels located in the South Sudanese capital of Juba have sued the government at the East African Court of Justice over unpaid bills totalling US$60 million accrued from 2021.

The case, submitted to the First Instance Court by Pan African Law Chambers, involves a group of hotels and apartments that provided services to officials from the National Security Service, the Vice President’s Office, and the peace mechanism.

The group accuses the National Transitional Committee, under the Office of the Presidential Adviser on National Security, of not settling the outstanding claims.

The plaintiffs accuse the National Transitional Committee, under the Office of the Presidential Adviser on National Security, of failing to settle outstanding claims.

The hotels took the matter to the East African Court of Justice (EACJ) on December 31, 2024, seeking over US$60 million in unpaid bills, penalties, and damages after waiting for more than three years.

The applicants had provided hotel and catering services to government officials and guests in line with the National Transitional Committee’s arrangements.

The case is based on the government’s failure to honor a letter from the Chair of the National Transitional Committee (NTC) and the Office of the Attorney-General, which sought to fulfill the government’s obligations.

The plaintiffs argue that a government’s failure to meet its legal commitments violates the East African Community (EAC) Treaty, particularly its principles of good governance.

In response to a letter sent by the plaintiffs’ lawyers on December 23, 2024, the Attorney-General admitted the failure and requested an amicable settlement, but no payments were made, leading the hotels to seek legal action.

The plaintiffs assert that the respondent’s actions violate the EAC Treaty, especially in relation to good governance, the rule of law, accountability, transparency, and social justice.

The hotels involved in the case include 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, among others.

The applicants are demanding a total accommodation bill of US$27.4 million, with an additional US$8.2 million in interest over three years, bringing the total claim to US$35.6 million.

The plaintiffs argue that the failure to settle these debts has resulted in significant financial losses, affecting their ability to meet obligations to landlords, shareholders, and other parties, while also damaging their business operations.

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