Serviced Office Provider Lodges Complaint against a Government Department for Non-Payment of Office Rental Space

In January 2023, the Ombudsman Commission received a complaint from a Company that had provided office space that was rented by a Government Department.  

According to the serviced office provider, the government department had signed a one (1) year rental agreement with the serviced office provider. However, after occupying the office space for six months, the government department vacated the office in January 2022 without giving any notice as required under the rental agreement.

The serviced office provider alleged a breach of contract against the government department and claimed loss of business. The serviced office provider wrote to the government department and demanded a payment of K120 000.00, an amount the government department was reluctant to pay.

On the contrary, the government department claimed that they had moved out of the property due to issues of constant power blackouts and the absence of a reliable backup generator.

On 8 May 2023, the Commission facilitated a case conference at its Regional Office between the serviced office provider and representatives of the concerned government department. At the case conference, all parties agreed that the payment amount of K120 000.00 was excessive and that the payment amount be decreased to K60 000.00.   

As a result of the intervention by the Ombudsman Commission, the matter was resolved and the agreed settlement amount of K60000.00 was to be paid by the concerned government department to the serviced office provider. It was further agreed that the amount of K60 000.00 would be paid in three (3) instalments.

The Commission followed through and confirmed that the three (3) instalment payments of K20,000.00, K16, 000.00 and K24,000.00 were paid by the concerned government to serviced office provider within the months of June 2023, October 2023 and January 2024.

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