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Roko questioned over slow Parliament building extension construction work

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The Roko Construction Limited has been questioned for slow construction works at parliament which started in 2013.
Nakasekke South Member of Parliament says parliament should hold the company accountable to explain the delayed completion of the parliament extension which was awarded to Roko over 10 years ago.
“Parliament plays an oversight role and therefore should be in position to explain this annoyingly slow work despite the government agreeing to financially support this private company,” he said.
In 2022, the government purchased 150,000 preference shares in Roko Construction Limited worth Shs202.13 billion which would be paid in five years to support the construction company which had been choking on debts.
The payment will consist of shares purchased at a par value worth Shs150 billion and a share premium value estimated at Shs57.6 billion.
Roko had faced severe liquidity challenges that constrained its ability to execute contracted projects that have adversely affected payments to its various suppliers and the financial sector.
The company was in 2022 said to have been significantly indebted and its indebtedness as of May 31, 2022, was Shs202.4 billion.
Mr Lutamaguzi said so far, the Ministry of Finance has disbursed over Shs20 billion to the company. “We have so far given them Shs20 billion,” he said.
Before the government intervened to support the company on the directive of the president, it also had contingent liabilities from bank guarantees of Shs130.9 billion while its indebtedness to financial institutions was $35.7 million and Shs20.7 billion. Bank guarantees issued for ongoing projects amount to 130.9 billion, which would be retired as projects are executed, and dues to local suppliers are Shs46.8 billion.

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