Construction firm sues govt over Shs119m

Friday June 18 2021
finance03pix

Uganda's legal tender. PHOTO/FILE/COURTESY

By Betty Ndagire

A construction firm has sued government over failure to pay Shs119.8m for construction of a Regional Service Centre in Kasese District.

In a case filed against the Attorney General, Muga Services claims that it was contracted by the Ministry of Public Service and performed its part of the contract but due to circumstances beyond its control, works could not be completed within the contract time.

Acting through Nsubuga K S and Co Advocates, Muga contends that on January 17, 2020, through the contract manager, requested for an extension, which was granted but the Ministry of Public Service reversed the extension, giving Muga only two weeks to complete works.  

Muga claims that under a lot of difficulty, it completed all works as per the contract but was shocked to be paid Shs3.7m, which was way too below an assessment by a Ministry of Works engineer that had recommended payment of  Shs119.8m.

Consequently, Muga wants court to order government to pay the Shs119.8m at an interest of 12 per cent per annum, damages and any other cost as court may determine. 

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