Thirty-Two Hotels Sue South Sudan Government Over $60 Million Unpaid Bills

JUBA — Thirty-two hotels in South Sudan have launched a major lawsuit against the government at the East African Court of Justice, claiming unpaid bills totaling more than $60 million.

The case, filed at the First Instance Court by the Pan African Law Chambers, accuses the National Transitional Committee, under the Office of the Presidential Adviser on National Security, of failing to settle debts for services provided to government officials, including those from the National Security Service, the Office of the Vice President, and peace delegations.

The hotels first moved to the East African Court of Justice on December 31, 2024, seeking the total debt, penalties, and general damages after waiting more than three years for payment.

The services provided included accommodation, catering, and hospitality for officials and peace delegations, as directed by the National Transitional Committee.

According to the suit, the case is based on the government’s failure to comply with letters from the chair of the National Transitional Committee and the Attorney-General, which demanded the government meet its obligations.

“Where a government fails to meet its lawful obligations, it is a violation of the Treaty of the East African Community by failing to adhere to good governance,” the application reads.

The Attorney-General admitted the debt in a response letter dated December 23, 2024, and requested an amicable settlement.

However, no payments were made, prompting the hotels to take the matter to court.

The filing argues that the government’s failure is a direct violation of the EAC Treaty principles, including good governance, 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. 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, Virgin Hotel, New East International, HaiMauna Classic Hotel, Nile Beach Hotel, Kerena Hotel, Dembeshi Hotel, Classic Marat, Juba Landmark Hotel, and Grand Hotel Juba.

The hotels are demanding payment of $27.4 million for accommodation bills plus $35.6 million in interest accumulated over three years.

The filing states that the government’s failure to pay has caused the hotels significant financial losses and affected their obligations to landlords, shareholders, and staff.

The petition also claims that business owners have faced harassment and intimidation from security personnel from the President’s office while seeking payment.

“The Attorney-General has failed to ensure that government officials carry out their duties to protect investments and foster trade within the East African Community, as envisaged under the EAC Treaty,” the filing states.

It further adds that the Attorney-General is vicariously liable for the losses and damages suffered by the hotels.

The government now has 45 days to respond. Analysts say the case could have major implications for investor confidence and South Sudan’s reputation in the East African region.

The lawsuit highlights the deepening tension between the private sector and government authorities, and it may set a precedent for holding state officials accountable to regional legal standards.