Mugoya Kenya sh7b case thrown out of court
Aug 02, 2005
EMBATTLED Ugandan contractor Isabirye Mugoya was stunned on Friday when Ksh7b suit against Kenya’s National Social Security Fund was referred to an arbitrator.
By Reuben Olita in Nairobi
EMBATTLED Ugandan contractor Isabirye Mugoya was stunned on Friday when Ksh7b suit against Kenya’s National Social Security Fund was referred to an arbitrator.
A Nairobi court gave the order following an application by NSSF, which argued that the high court lacked powers to force it to have Mugoya Constru-ction and Engineering Ltd as one of its contarctors.
In its defence, NSSF said parastatals were free to terminate contracts whose performance was poor.
The court heard that Mugoya’s performance in the Ksh13b housing contract awarded a decade ago, was not satisfactory.
Out of 4,000 housing units awarded to Mugoya in Nairobi, NSSF said, only 1,156 were completed, with three years behind schedule.
According to the contract, phase one of 1,156 units was supposed to have been completed by 1998, while phase two with 3,618 units, was to be completed by 1999.
Phase one was delivered in 2001, for which Mugoya is demanding Ksh7b and seeking an injunction stopping NSSF from inviting another contractor to complete the work remaining phases.
An arbitrator was sought by the two parties to determine the matter.
Ends
EMBATTLED Ugandan contractor Isabirye Mugoya was stunned on Friday when Ksh7b suit against Kenya’s National Social Security Fund was referred to an arbitrator.
A Nairobi court gave the order following an application by NSSF, which argued that the high court lacked powers to force it to have Mugoya Constru-ction and Engineering Ltd as one of its contarctors.
In its defence, NSSF said parastatals were free to terminate contracts whose performance was poor.
The court heard that Mugoya’s performance in the Ksh13b housing contract awarded a decade ago, was not satisfactory.
Out of 4,000 housing units awarded to Mugoya in Nairobi, NSSF said, only 1,156 were completed, with three years behind schedule.
According to the contract, phase one of 1,156 units was supposed to have been completed by 1998, while phase two with 3,618 units, was to be completed by 1999.
Phase one was delivered in 2001, for which Mugoya is demanding Ksh7b and seeking an injunction stopping NSSF from inviting another contractor to complete the work remaining phases.
An arbitrator was sought by the two parties to determine the matter.
Ends