Government sued over Lubowa hospital

Friday April 5 2019

The artistic impression of the International

The artistic impression of the International Specialised Hospital (ISHU) in Lubowa, Entebbe Road. COURTESY PHOTO  

By JULIET KIGONGO

A civil society organisation has dragged government to court, seeking nullification of all agreements made with an investor for the construction of international specialised hospital in Lubowa, Wakiso District.
Initiative for Social and Economic Rights (ISER), in a suit filed before the Constitutional Court yesterday, argues that the agreements contravene the Constitution of Uganda.

The three pacts that the petitioners want quashed are the project works investment agreement of May 27, 2015, the project services agreement of January 27, 2016 and the lenders’ direct agreement of December 4, 2018.

“The agreements are in contravention of several provisions and articles of the Constitution, including the requirement to obtain approval of Parliament before borrowing or guaranteeing loans,” reads in part the court documents.

The petitioners are also seeking a court declaration that the purported approval by Parliament on March 12 of a proposal by government to issue promissory notes of $379.71 million (about Shs1.4 trillion) to FINASI /Roko Construction SPV Limited for financing of the design, construction and equipping of the hospital be set aside.
“In March 2019, the Parliamentary Committee on National Economy, in its report, observed that necessary parliamentary approval had not been obtained but went ahead and recommended that the House approves the proposal for government to issue promissory notes not exceeding $379.71 million,” they further state.

The petitioners are seeking an order that Parliament ensures that the citizenry participates in the inception, and approval of the public-private partnership project.

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