Local Contractor Threatens Legal Action Against Ntungamo District Over Contract Dispute
A Local contractor, MUPA Technical Services has threatened to sue Ntungamo District Local Government to the Commercial Court accusing it of unlawfully terminating its contract for the construction of Kihanga Public Seed School. The contract that was signed in 2020 has become contentious after district authorities ordered the contractor to vacate the site due to significant delays attributed to the contractor’s failure to adhere to project guidelines.
Patrick Mugyenyi, Managing Director of MUPA Technical Services claims that these delays were primarily due to the district’s failure to provide timely funding. He emphasized that the project valued at Shs2.078 billion has suffered further complications due to the district’s neglect in signing necessary contract variations for earthworks costing 727 million shillings arising from the challenging conical hill terrain of the site.
Mugyenyi expressed frustration over what he describes as a breach of contract citing delayed payment while the district seeks to engage other contractors for the same project. He demands payment of over Shs1.254 billion from the district before any new contractor is hired.
He further warned that failure to address this issue will compel him to pursue legal action against the district.
He lamented that these challenges are faced by local contractors in Uganda who struggle against foreign firms that typically receive more favorable treatment.
Responding to the situation, Ntungamo District Chief Administrative Officer, Matthias Ndifuna acknowledged that the construction is currently about 72% complete and noted that some payments had been made to MUPA Technical Services.
However, the situation remains concerning particularly for the local community. Africano Ashabaheebwa, headteacher at Kihanga Public Secondary School voiced the community’s frustration stating that inadequate infrastructure is severely impacting the school’s performance.
As tensions mount, MUPA Technical Services appears prepared to escalate its claims against the district emphasizing the urgent need for resolution to ensure the future of the construction project and support for local contractors.
