AG sued over Karamoja road contract termination

By Michael Odeng

Zzimwe Enterprises, Hardwares and Construction Ltd, has sued the Government over the termination of its contract in Karamoja four years ago and alleged vandalisation of its construction equipment.

The company is seeking billions of shillings in damages for the terminated contract on the Kalapata-Piire road in Karamoja.

The company is also seeking punitive damages against the Government for the illegal confiscation of its equipment. It also asked the court, in its complaint, to institute a 38% interest until full payment has been made.

The company contended that it was awarded the contract on November 6, 2008 after a diligent bidding process to rehabilitate the Kalapata-Piire road under the Karamoja Roads Development Programme. It also said its work was supervised by the works ministry.

It complained, however, that it had only done 30% of the work when their progress was made difficult by bad weather and insurgence caused by cattle rustlers.

The company said the Government then cited the delayed completion of the road and terminated the contract and also retained its equipment to date.

The company added that the equipment has since been vandalised. Zzimwe also said as a result, it has lost income, business and machinery.
The Attorney General, who is the legal advisor to the Government, has been summoned to file a defence within 15 days.

“Should you fail to file defence, on or before the date mentioned, the company may proceed with the suit and judgment be given in your absence,” stated the summons