UGANDA, Agago | Real Muloodi News | Agago District leaders have filed a petition with the Solicitor General, seeking assistance in recovering USh113 million from a contractor who failed to complete construction work.
The leaders allege that the contractor, Handy Services Ltd, abandoned the project for the construction of Lukole Satellite Market after receiving an advance payment.
Abdulnoor Muwonge Mbagwa, the district’s Chief Administrative Officer, said the district is pursuing legal action against the contractor to reclaim the funds.
The CAO claims that the district provided Handy Services Ltd with an advance payment of USh200 million for the project, but the contractor left the site incomplete at slab level.
Muwonge mentioned, “We have written to the Solicitor General, asking him to institute a legal case against this contractor, and we are yet to get feedback.” He added that they plan to meet with the Solicitor General soon to discuss the next steps.
In October 2021, Agago District leaders claim to have awarded a one-year contract to Handy Services Ltd for the construction of the Lukole Satellite Market, valued at USh567 million.
However, they allege that the contractor abandoned the project before completion. In response, the district engaged the facility’s funders and the Ministry of Local Government, seeking permission to complete the works using force-on-account funds.
Ms. Anne Twinomugisha Muhaire, Deputy Inspector General of Government, instructed the district in a December 12, 2023 letter to take measures to recover the funds from the contractor.
She directed, “You are directed to institute a civil proceeding to recover the 30 percent performance advance amounting to USh113,576,798 that was paid to Handy Services Ltd from the company.”
On May 4, 2023, following advice from the Public Procurement and Disposal of Public Assets Authority (PPDA), it is alleged that the district leaders terminated the contract with Handy Services Ltd.
The district leaders allege that their attempts to contact Denis Olara, the director of Handy Services Limited, for comment on the allegations of abandoning work upon receiving part payment were unsuccessful, as his phone numbers were unreachable.
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