Lubowa hospital works suffer another setback
Stalled. The construction site of the specialised hospital in Lubowa on Entebbe Road. PHOTO BY ABUBAKER LUBOWA
What you need to know:
- In May, Soroti Municipality MP Herbert Ariko raised the matter before Parliament, citing missing funds for the project.
The controversy surrounding the construction of a high tech specialised hospital in Lubowa has hit another twist after the High Court issued an injunction.
The recent development stems from a protracted legal battle between FINASI, the main contractor, and Roko Construction company.
The matter relates to an alleged breach of contract by Finasi on admitting a Chinese sub-contractor Power China Guizhou Engineering Co Ltd to conduct civil works instead of Roko.
This implies that construction works, which were commissioned on June 10, will have to wait for the final pronouncement of court.
In a statement presented to Parliament yesterday, Dr Jane Aceng, the Minister of Health, confirmed the drawback.
“Whereas I am careful to comment about this matter as it is sub-judice, the High Court has issued an injunction pending the determination of the suit to the effect that the status quo should be maintained and that the applicant, Roko Construction Ltd, should not be evicted from the site,” the minister said.
Dr Aceng said the Health ministry has no objection to the approval of the proposed subcontractor but they have decided to wait for the opinion of the Attorney General as to whether any such approval would not translate into contempt of court.
However, Dr Aceng told MPs that “despite the legal issues, the ministry was committed to ensuring that the contractor delivers the project on time.
“There exists contractual safeguards and other project controls that will ensure that the interests of government are safeguarded and that the taxpayer shall not suffer loss in case of any eventuality,” she added.
The Lubowa hospital project has faced challenges ranging from legal contestations to lack of public trust.
Complications
In May, Soroti Municipality MP Herbert Ariko raised the matter before Parliament, citing missing funds for the project.
Mr Ariko said $37m (about (Shs140b) out of $397m (Shs1.4t) had mysteriously disappeared.
He said on May 16, the East and Southern Development Bank had released $87m (Shs327b) but only $50m (Shs188b) was received by Stanbic Bank.
A directive by the Speaker of Parliament, Ms Rebecca Kadaga, for a probe into the allegations has not yielded much so far.
