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Contractor refuses to handover Kabale Hospital staff hostel citing unpaid balance

The structure in dispute

Kabale, Uganda | THE INDEPENDENT  | Musuuza Building Contractors Limited, the construction company building a staff hostel at Kabale Regional Referral Hospital, has declined to hand over the completed structure. The contractor cites unpaid extra balance as the reason for their refusal.

The staff hostel, valued at Sh7.8 billion, was funded by the Government of Uganda through the Ministry of Health. Construction began in May 2017, with an expected completion date of June 3, 2022. The facility aimed to address accommodation challenges for health workers and interns, featuring apartments, a recreational center, a multi-purpose center, and a grocery center.

Despite the construction nearing completion, it has come to light that the contractor is unwilling to hand over the structure to hospital authorities. Bernard Mugisha, a site engineer from Musuuza Building Contractors, explains that due to the challenges caused by the COVID-19 lockdown, work stalled, and they officially informed all relevant authorities.

Mugisha reveals that as a result of the delays and increased prices of building materials between 2020 and 2022, the contracting company faced extra expenditures amounting to 790 million shillings. He asserts that until the hospital and government settle the unpaid balance of 790 million shillings, the structure will not be handed over.

Dr. Emmanuel Nzandora, the acting Kabale Regional Referral Hospital Director, expresses surprise at the contractor’s demand for additional funds. He states that the hospital is currently struggling to find accommodation for intern doctors and was unaware of the extra payment being requested.

Godfrey Nyakahuma, the Kabale Resident District Commissioner, accuses the contractor of withdrawing security personnel from the site without informing the hospital administration. Beatrice Akello Akori, the Minister of State for Economic Monitoring, directs the contractor to hand over the structure so that it can fulfill its intended purpose.

She emphasizes that the matter will be investigated, as the contractor did not adequately communicate the issues they encountered to relevant stakeholders. Akori warns that failure to comply with the directive may result in the contractor’s arrest.

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