A coalition of 32 hotels in South Sudan has filed a new lawsuit against the government for allegedly reneging on a settlement to pay more than $60m for accommodation and services.
The case, lodged at the East African Court of Justice (EACJ), centres on the government’s failure to honour a binding agreement made in July to resolve the long-running dispute.
The original debt was accrued over several years for housing government-affiliated guests and peace delegates following the signing of the 2018 peace agreement.
The regional court has given the South Sudanese government 45 days to respond to the lawsuit. South Sudan is a member of the East African Community (EAC), a regional intergovernmental organisation.
A history of unpaid bills
The legal dispute stems from the hotels providing accommodation to officials under the National Transitional Committee (NTC), the body tasked with implementing the 2018 peace agreement.
Army generals and officials from the various parties were housed in hotels and apartments arranged by the committee.
However, by early 2021, with bills going unpaid, many hotels began evicting officials, with some cutting off electricity and water supplies. The NTC was first chaired by Presidential Advisor for National Security Affairs, Tut Gatluak Manime, and later assigned to Senior Presidential Advisor Gen. Kuol Manyang Juuk.
To end the litigation, both sides reached an out-of-court settlement in Juba on 24 July 2025.
A copy of the settlement, seen by Radio Tamazuj, shows the government agreed to a payment plan, with the first instalment due on 29 September 2025 and the final payment scheduled for the following year.
The hotel coalition, led by World Focus Hotel and represented by Pan African Law Chambers LLP, states that the government has not made any of the agreed payments.
A summons from the EACJ, dated 25 November 2025, has now been served to South Sudan’s Ministry of Justice and the Office of the Attorney General.
High-level promises
The initial out-of-court settlement signing was a high-profile event, indicating a firm commitment from the government.
Senior officials present at the ceremony included Chol Ajongo Mawut, then Minister of Presidential Affairs; Dr. Wek Mamer Kuol, then Minister of Justice; and Mary Ajith, the Undersecretary of the Ministry of Justice.
Multiple sources said prior negotiations had also involved other high-ranking figures, including Ambassador Sebit Bullen Kamonde, representing the Office of the President.
Despite these efforts and subsequent meetings—including one with the newly appointed executive director in the office of the president, Valentino Dhel Malueth—the hotels say their attempts to resolve the matter failed.
Return to litigation
Faced with the government’s inaction, the hotels felt compelled to return to the EACJ.
Their legal team cited Article 30(2) of the Treaty for the Establishment of the East African Community, which sets a strict time limit for bringing cases before the court. To prevent their claim from becoming time-barred, they filed a new “Reference”—the term for a case at the EACJ.
The applicants argue that the government’s failure to pay constitutes a breach of fundamental principles of the East African Community, including the rule of law and good governance.
The case is now formally registered with the EACJ’s First Instance Division in Arusha, Tanzania.
Radio Tamazuj was unable to immediately reach the Ministry of Justice or the Office of the President for comment.