The Supreme Court held that while the applicable law (Article 78 of Law No. 12/2007) prescribes 1% daily interest for late payment of public procurement guarantees, the resulting sum (639,923,932 Frw) was manifestly excessive compared to the principal (19,935,235 Frw) and the actual loss. The Court exercised its discretion to reduce the interest to an amount equal to the guarantee, preventing unjust enrichment and aligning with principles of proportionality and fairness.
The Supreme Court held that a supervising consultant could not claim unpaid fees or a performance guarantee without approved reports, signed invoices, and proof of acceptance.
The Supreme Court held that a supervising consultant could not recover payment or a performance guarantee without approved reports, signed invoices, or proof of acceptance.
Both Rwagasana and Mukakimenyi are jointly liable for the principal debt and interest to BK Ltd as all relevant agreements were signed by both parties. BK Ltd acted within its rights to charge interest and fees as stipulated in the contracts, including for the performance guarantee paid on Rwagasana's behalf. However, judicial costs and attorney fees must be set by the court's discretion and not solely by contractual percentage. The expert fee is recoverable by BK Ltd as the expert performed work at the applicants' request. The applicants' claims for damages and to avoid liability are rejecte…