Court Orders Roko Construction to Pay Shs5.7 Billion for Mulago Hospital Doors

Roko Construction Company has been ordered by the Commercial Division of the High Court to pay approximately Shs5.7 billion to Assa Abloy Uganda Limited. The judgment stems from an unpaid debt for thousands of doors and ironmongery accessories supplied for the renovation of Mulago National Referral Hospital.

Presiding judge Justice Stephen Mubiru ruled on October 16 that Roko failed to settle the outstanding contractual balance of $1,391,667.58 despite receiving and installing the materials. Assa Abloy had informed the court that while the goods were supplied and installed between 2017 and 2019, Roko only paid $1.19 million of the total agreed sum.

Roko had argued that some of the supplied items were defective or did not meet specifications, and also claimed that part of the consignment was returned. However, Justice Mubiru dismissed these arguments, stating that Roko did not formally reject the goods within a reasonable time. The court noted that Roko had installed the doors and used the accessories for years, implying acceptance.

Further, the court found no evidence to support Roko’s claims of a substantial number of doors being returned or repossessed. An audit in August 2020 confirmed the installation of all 2,716 doors. Consequently, the court entered judgment in favor of Assa Abloy for the unpaid balance. The suit against the Attorney General, who was listed as a second defendant, was dismissed with costs.

The initial order in June 2017 was for 2,398 steel doors, later revised to 2,716 doors and accessories, with an additional order for ironmongery. The total value of the combined orders amounted to $2,581,667.58. Payment was due within 45 days of delivery, but Roko only remitted $1.19 million.

Source: https://www.monitor.co.ug/uganda/news/national/court-orders-roko-to-pay-shs5-7b-over-mulago-hospital-doors-5638246