KCCA accused of defaulting to pay damages

KAMPALA.

Kampala Capital City Authority has been accused of failure to pay more Shs1.5 billion as damages awarded to Omega Construction by an arbiter.The debt is part of the Shs3 billion that Omega was supposed to receive for extension works on Kiteezi landfill in Kawempe Division.

Omega managing director Pious Mugerwa Mugalaasi told Daily Monitor KCCA had failed to pay the amount stated in the adjudication report, which faulted it for “deliberately failing” the contractor’s capacity to deliver the contract in time.Omega was expected to deliver the contract in six months and both parties agreed during the agreement signing that there shall be an arbitrator – a professional body – to mediate in case of breach of the contract.

In his November 30, 2013 arbitration report, Mr Frederick Kiwanuka, appointed by the Uganda Institution of Professional Engineers as an arbitrator ruled that KCCA should compensate Omega for damages. KCCA spokesperson Peter Kaujju, said the contract was terminated following the firm’s failure to meet the contract standards.

SOURCE: Daily Monitor

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