The Government has committed itself to pay Roko Construction Limited an outstanding debt of sh46.9b that it owes the company for the different contracts executed over time.
This comes after Roko wrote to the Government seeking to have their monies paid so as to solve the cash fl ow challenges that have affected the company operations. Just like many other companies, Roko’s businesses were affected by the COVID-19 lockdown.
In a letter to the Roko managing director dated November 20, 2020, the finance minister, Matia Kasaija, expressed the Government’s commitment to pay Roko within four months.
"I acknowledge receipt of your correspondence in which you brought to my attention the long-outstanding payments amounting to sh46,997,280,913.80 due to Roko Construction Limited and recognise the same as contributory to your current cash fl ow problems," Kasaija wrote.
The minister wrote to Roko as an assurance that they will pay, but were still carrying out verification of the overdue payments with the relevant government agencies. He added that once the overdue money has been confirmed, payment would be arranged in line with the law. This implies that the Government will pay Roko by March 20, 2021.
The minister urged the banks to offer Roko the necessary support to enable the construction firm to meet its obligations with its clients. Kasaija copied the letter to President Yoweri Museveni and the Prime Minister, Dr Ruhakana Rugunda.
Roofings’ sh2b debt
The development comes at a time when Roofings Limited has dragged Roko to the Commercial Court over alleged failure to settle a sh2b debt.
Roofings argued that it supplied Roko with steel products, but it never paid, a breach of their contract.
After Roko reportedly failed to settle its debts, Roofings moved to court and obtained an order to attach the company’s bank accounts in Stanbic Bank, Standard Chartered Bank, Exim Bank, Absa Bank, East Africa Trade and Development Bank. However, Roofings claimed that there was no money.
In a petition filed through Simon Tendo Kabenge Advocates, Roofings later applied to court seeking to have Roko wound up after it failed to clear the debts. A notice placed in the media indicated that the court is yet to fi x a date to appoint a receiver of the assets. Roko responds Roko does not dispute the debt but says it has been unable to pay over financial challenges. A top manager from Roko admitted that they owe Roofings money, but they will pay."We are […]