US-based Eutaw Construction company drags UNRA to court

Mukono-Katosi road construction
Mukono-Katosi road construction

American company, Eutaw constructions has gone to court seeking for orders to have the Uganda National Roads Authority unconditionally restore its contract for the Mukono-Katosi road project.

Eutaw constructions is accused of abandoning work on the 74km road project, subcontracting it to another company and is also a subject of investigations by Police and Inspector General of Government.

In the notice dated December 8, Eutaw  through its lawyers of Muwema and company Advocates also demanded the Acting Executive Director of UNRA to substantiate the allegations levied against the company in a November 24 letter in which the authority moved to cancel the Shs165 billion contract.

The company through its lawyers of Muwema and company Advocates commenced legal proceedings for an order of specific performance of the contract and to recover special, general and punitive damages.

“In the event of non-compliance with the demand, you cause the publication of a clear and unequivocal apology to our client in a prominent part of the print media, the text of which we must approve by December 12 this year,” reads the letter.

UNRA also directed the subcontractor, CICO, a Chinese company to vacate the site on orders of the IGG. CICO through its lawyers has also since also dragged the IGG to Court seeking injunction to stay all action pending.

Dan Alinange, the head of ‎Head of Corporate Communications at UNRA has confirmed receiving the letter and said their legal department would respond accordingly.

“The issues raised are subject to inquiry and immediately our legal department concludes with a report, we shall be in position to respond fully,” he said.

According to UNRA officials, a contract with the new contractor has been already drafted and was forwarded to the Solicitor General’s office for review. The authority also said a new contractor will be announced on Monday next week.