High Court Orders Roko to Pay Shs 5.7 Billion for Mulago Hospital Doors

The High Court in Kampala has mandated Roko Construction Limited to pay Assa Abloy (U) Limited a sum of $1.39 million, equivalent to about Shs 5.7 billion. This payment is for doors, accessories, and ironmongery that Assa Abloy supplied and installed at the Mulago National Referral Hospital.

Commercial Division judge Stephen Mubiru delivered the judgment electronically, ordering Roko to pay Assa Abloy $1,391,667.58. Additionally, the court awarded interest at a rate of nine percent per annum from August 20, 2020, until the full payment is made, along with the costs of the lawsuit.

The dispute stemmed from supplies made for the Mulago Hospital construction project, where Roko was the main contractor. Court documents reveal that Roko initially ordered over 2,300 steel door sets in June 2017, a quantity later revised upwards. A subsequent order in January 2019 added more ironmongery, bringing the total value of supplies and installation to over $2.58 million.

Assa Abloy asserted that it fulfilled its obligations between 2017 and 2019 but Roko failed to settle the outstanding balance. Roko contested the claim, questioning the quantities supplied, the absence of formal delivery notes, and alleging defects in some doors.

However, Justice Mubiru found that a binding contract was established through Roko’s requisitions, partial payments, and the conduct of both parties. Evidence, including shipping documents, URA clearances for multiple consignments, and a project progress report indicating 85% completion by Assa Abloy, supported the supplier’s case. Crucially, Roko’s operations manager, Beyers Strydom, later confirmed via email that 2,716 doors had been installed, validating the total value of supplies.

The court dismissed Roko’s arguments regarding unsigned verification records and alleged defects, noting that the company had ample opportunity to reject the goods but instead installed and retained them while making partial payments. The case against the Attorney General was dismissed, as the government was not a direct party to the supply contract.

https://observer.ug/news/high-court-orders-roko-to-pay-shs-5-7bn-for-mulago-hospital-doors