Contractor declines to handover Kyotera office block over pay

The contractor for the new Kyotera District administration block has refused to hand over the building to the district leadership, citing an outstanding debt.

The Shs1.4b building whose construction started in 2018, first stalled for about a year after district officials failed to allocate funds to complete the work.

Even after paying the biggest portion of the debt, the contractor, Owen Construction Company Ltd, insists it will only allow the district staff to utilise the building after receiving the Shs81m balance.

“ I am only demanding my money because I contracted the building expecting to get profits. I will, therefore, handover the building after the district leadership has paid to zero balance,” Mr Sulaiman Ssamula, the managing director of Owen Construction Company Ltd , said yesterday.

He said his workers are currently making a few finishing touches such as painting  on the building.

The district chairperson, Mr Patrick Kintu Kisekulo, said they have already secured the Shs81m and will soon wire it to the company’s bank account .

He blamed the pay delays on the electronic money transfer system which the district use to pay creditors.

“The money we have used to put up a modern office block has been coming in bits since 2018, we thank the government for fulfilling its promise and the contractor is going to get his last instalment in a few days ,” he said.

The building, according to Mr Kisekulo, has more than 72 rooms, which will house a council, hall, a boardroom and staff offices.

According to Mr Rogers Bwayo, the chief administrative officer, construction of other district administration blocks besides that of Kyotera have also delayed.

“Other districts like Butambala and Kamuli are also facing a similar challenge. But our contractor is doing his best to complete the work,” he said.

Since the creation of the district in 2017, the staff have been occupying buildings of Kasaali Town Council.

“Some of our staff have been sharing offices while others attend to clients under the trees at the district headquarters’ compound, which inconveniences them,” he added.

Records from the ministries of Finance and that of Local Government indicate that the government spends at least Shs1.2b annually to run activities of every new district because many lack sources of revenue.

The bigger part of government resource budget to districts goes to paying salaries of district leaders.