NSSF appeals against Alcon case
Sep 22, 2009
THE National Social Security Fund (NSSF) has appealed a court order to pay sh17.6b to Alcon International for cancelling the contract to build Workers House in May 1998.
By Barbara Among
THE National Social Security Fund (NSSF) has appealed a court order to pay sh17.6b to Alcon International for cancelling the contract to build Workers House in May 1998.
The fund said in a statement that its lawyers had notified the Supreme Court that it intended to appeal against the Court of Appeal award of $8.8m to Alcon, a Kenyan-based company.
The decision was made at a board meeting last Thursday, chaired by fund chairman Vincent Ssekkono. Representatives of workers, employers and government attended the meeting.
Communications officer Charles Muhoozi yesterday said the appeal was filed by their lawyer, Joseph Byamugisha. Byamugisha, he added, had written to the Court of Appeal asking for a copy of the proceedings, including the judgment, to enable him prepare his case.
The fund last month lost a case to Alcon International, a construction company it had contracted to build the 19-storey Workers House on Kampala Road.
The Court of Appeal dismissed all grounds given by the fund, and upheld the lower court’s multi-million dollar award to Alcon, which had sued NSSF for arbitrarily terminating the contract.
In its defence, the fund argued that Alcon stalled the work, escalated the cost from $21m to $35m and sub-contracted a third party without its knowledge.
After the cancellation of the contract, NSSF handed the work to Roko Construction Company, which completed the construction.
Alcon, however, retained the land title for Workers House. Analysts argue that if the court order is not overturned, Alcon could sell the house to realise the sh17.6b awarded by the court.
Former managing director David Jamwa had agreed to pay Alcon sh28b out of court, but he was reportedly stopped by the board.
The Alcon case is one of many scandals which the fund has been involved in. About a year ago, the fund was accused of buying land in Temangalo at a higher-than-market price, which cost workers sh11b.
THE National Social Security Fund (NSSF) has appealed a court order to pay sh17.6b to Alcon International for cancelling the contract to build Workers House in May 1998.
The fund said in a statement that its lawyers had notified the Supreme Court that it intended to appeal against the Court of Appeal award of $8.8m to Alcon, a Kenyan-based company.
The decision was made at a board meeting last Thursday, chaired by fund chairman Vincent Ssekkono. Representatives of workers, employers and government attended the meeting.
Communications officer Charles Muhoozi yesterday said the appeal was filed by their lawyer, Joseph Byamugisha. Byamugisha, he added, had written to the Court of Appeal asking for a copy of the proceedings, including the judgment, to enable him prepare his case.
The fund last month lost a case to Alcon International, a construction company it had contracted to build the 19-storey Workers House on Kampala Road.
The Court of Appeal dismissed all grounds given by the fund, and upheld the lower court’s multi-million dollar award to Alcon, which had sued NSSF for arbitrarily terminating the contract.
In its defence, the fund argued that Alcon stalled the work, escalated the cost from $21m to $35m and sub-contracted a third party without its knowledge.
After the cancellation of the contract, NSSF handed the work to Roko Construction Company, which completed the construction.
Alcon, however, retained the land title for Workers House. Analysts argue that if the court order is not overturned, Alcon could sell the house to realise the sh17.6b awarded by the court.
Former managing director David Jamwa had agreed to pay Alcon sh28b out of court, but he was reportedly stopped by the board.
The Alcon case is one of many scandals which the fund has been involved in. About a year ago, the fund was accused of buying land in Temangalo at a higher-than-market price, which cost workers sh11b.