Lubowa hospital developer loses bid to halt court orders

Court has dismissed with costs an application in which the developer of Lubowa International Specialised hospital in Wakiso District had sought to block implementation of an order that halted recruitment of a new contractor.
In a ruling delivered on Friday, Court of Appeal Judge Christopher Madrama dismissed the application, citing lack of merit.
“I have read through the orders appealed against and have failed to perceive how the impugned orders can be construed as orders capable of execution that may be stayed. The wording of the temporary injunction is clearly negative in that it restrains the applicants from evicting the respondent (Roko construction Company) from the site. Such an order on the face of it is not capable of being stayed,” Justice Madrama ruled.
The developer, FINASI/ ROKO Construction SPV Limited, petitioned the Court of Appeal seeking to stop the July 4 temporary orders in which the High Court stopped the recruitment of a new contractor until the main dispute is disposed of.
On July 4, High Court judge Andrew Bashaija issued the order stopping FINASI/ ROKO Construction SPV Limited and FINASI International FZC from engaging any other contractor apart from Roko Construction Company Limited.
The judge also blocked the eviction of Roko from the proposed site for the construction of the multimillion International Specialised Hospital until a pending case is determined.
However, FINASI/ ROKO Construction SPV Limited petitioned the Court of Appeal seeking express orders to halt the implementation of the orders.
The company also asked for another order to stop the proceedings in the company case in which Roko Construction sued FINASI/ROKO Construction SPV Limited and FINASI International FZC accusing them of conducting the company affairs unfairly and in a manner prejudicial to it.

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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

Roko Construction Company Limited is a shareholder in FINASI/ ROKO Construction SPV Limited, a special purpose vehicle that was incorporated to design, finance, construct and equip the hospital.
In the High Court, FINASI/ ROKO Construction SPV Limited is accused of defying the July 4 court orders.
FINASI/ ROKO Construction SPV Limited is jointly accused with FIASI International FZC, Ms Enrica Pineti and company secretary, Mr Moses Matovu.
Court has set August 21 for a ruling in the contempt of court proceedings.

Main Case
The application arose out of the main case in which Roko Construction Company Limited sued FINASI/Roko Construction SPV Limited and FINASI International FZC challenging a decision of the investor, FINASI International FZC, to throw it out and engage another contractor.
The court documents indicate that ROKO Construction Company Limited has since concluded financial contracts with Trade and Development Bank, AFRIEXIM, Amalgamated Banks of South Africa and Sanlam where they contributed $250m (Shs925b) for the construction of the hospital.
Court heard that ROKO Construction Company have since provided a performance security of $7.9m (Shs29b)to secure the contract.