The Uganda National Roads Authority (UNRA) has terminated their contract with construction company Dott Services on the rehabilitation of the Nakalama-Tirinyi-Mbale road.
The development comes less than a month after a presidential directive to UNRA Executive Director, information pills Allen Kagina to stop giving contracts to Dott Services which he referred to as ‘fraudulent.’
It also comes barely a month after heavy rains washed away two bridges on the same road, about it leaving one person dead and several people injured.
Dott services who are responsible for laying asphalt and box culverts on the road however complained of a “cash flow problem.”
In a letter dated April 10th, Dott Services alleged that “the effect of the employer [UNRA] being the employer and the project manager” puts them (contractors) in “a susceptible position on any matter of recourse.”
They further said that the contractor is left “without due and fair redressal as the employer remains unilateral in differences in opinion in works of the management of the contract.”
According to a Notice to Terminate, dated May 9th and seen by ChimpReports, Kagina notes that Dott services have “put the Employer’s impartiality to manage the contract in issue thereby questioning Employer/Contractor relationship.”
This, Kagina says, has rendered it inconvenient for the Authority to proceed with the contract.
“On the basis of this communication therefore, our relationship in the management of the contract has irretrievably broken down and this is negatively impacting on the project,” she wrote.
“As such, we are invoking subclause 50.4 of the General Conditions of contract and terminating the contract for convenience.”
When contacted, UNRA Media Relations Manager Allan Ssempebwa Kyobe confirmed the development saying “it’s true, we have repossessed site.”
“Our teams are taking stock of safety and technical issues along Nakalama-Tirinyi-Mbale road following the termination of Dott Services, the works contractor,” added Ssempebwa.