January 10, 2015

Katosi Road Saga: IGG Listed As Codefendant

Nakawa High Court has allowed the Inspector General of Government (IGG) to be party to a case in which a Chinese company, (CICO) is in court challenging government’s decision to deny it a contract to construct the Mukono-Kyetume-Katosi- Nyenga road.

katosi

CICO had only sued the Attorney General and Uganda National Roads Authority (UNRA) leaving out the IGG that had barred it from participating in the second procurement process.

But in his ruling yesterday, Justice Masalu Musene held that it’s against the rules of natural justice to condemn the IGG unheard since it’s the Inspectorate that unveiled the rot relating to the award of this contract.

In the case, in which the IGG is now party, CICO seeks to reverse the IGG’s directive to halt it from continuing with works on the Mukono-Kyetume-Katosi road without first giving the Chinese company an opportunity to be heard.

CICO was sub-contracted by an American company Eutaw construction, which won the original Katosi road upgrade contract but was later found to be a fake company and the IGG accordingly cancelled the Ugx 160 billion contract.

To that extent, government claims to have lost Ugx 24 billion that it had already paid out to the company to carry out the upgrade.

Accordingly, Justice Masalu fixed January 29th to hear the case.

In a related development, the chief government legal advise the Attorney General is dissatisfied with court’s decision to have the IGG added. By press time, there were indications that the Attorney General was headed to the Court of Appeal to challenge the decision.

The ruling comes at the time when Eutaw Constructions has run to the Constitutional Court seeking its orders to among others stop the further steps the government is taking to terminate its contract.

The Constitutional Court will on Tuesday next week hear the application for interim orders.

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