ROKO construction Company Ltd is currently working smoothly on 24 projects worth $206m (roughly Shs800bn) despite a paltry debt of Shs2bn owed to Roofings Ltd.
Roofings Ltd , through her lawyers M/S Simon Tendo Kabenge last Friday filed ‘a mischievous’ application before the High Court seeking to wound up and liquidate ROKO Construction Ltd over the above debt.
In the petition published in the media on Monday, Roofings Ltd does not state the amount of money owed to her by Roko Construction Ltd.
However, details obtained from documents filed at the Commercial Court in Kampala indicate ROKO owes Roofings Ltd and Roofings Mills Ltd Shs165m and $555,000 (roughly Shs2bn) respectively.
“Though ROKO is facing temporary financial issues, the money they are indebted to Roofings Ltd is not alarming. It doesn’t call for such a harsh move,” affidavits from court sworn by Roko construction Ltd officials indicate.
Details also indicate the overdue days are between 263 to 341 days as on November 30th, 2020 which doesn’t quality the owed monies as a bad debt.
“These are the exact dates on when the debt was due; on average 10 month old,” the documents further state.
“The entire supply was $2.4m in 4 batches of $600,000 every after three months and spread across 12 months and so far one consignment hasn’t been cleared.”
Top honchos at Roko Construction Ltd believe this debt is too small to cause the wound up of the company that is currently active on 24 construction sites worth Shs800bn. These are mainly government projects
Among the projects that are on course include parliament expansion (200bn), IGG headquarters, ministry of finance –treasury, Mbarara market, Kampala fly over, Agakhan Hospital, Uganda Cancer Institute, Makere university public health among others.
The timing of the petition, according to our sources is not accidental! It is suspected Roofings Ltd and her lawyers are being mischievous and could being used by the mafia in the construction industry to crash Uganda’s leading local construction company.
ROKO is the only local construction firm majoring in civil works that has managed to wade off competition from Chinese firms that have flooded the Ugandan market.
“There is an underhand plotting to take advantage of the situation and wipe Roko out the market,” sources close the industry workings told this media house.
Till last Friday, ROKO has had a good working relationship with Roofings Ltd spanning over 25 years.
Records indicate since 1994, Roofings Ltd /Roofing Rollings Ltd have supplied Roko Construction Ltd materials worth more than Shs222bn in a trade arrangement that has facilitated the government policy of Buy Uganda, Build Uganda (BUBU).
Both ROKO and Roofings are locally owned companies, with taking a huge chunk of government projects.
Analysts are now wondering where the Roofings Ltd move leaves this kind of trade arrangement as ROKO is the largest consumer of steel since the company is working on huge government projects that consume steel
“It is with sadness that after ROKO has had a business relationship with Roofings for over 25 years, they have chosen this as their preferred course of action. It is further to be noted that the outstanding amounts owed to Roofings Ltd is to the tune of UGX 165,000,000 and USD 555,000 and not the astronomical amounts that is claimed by some as being the outstanding amount. Also the amounts are on average 10 month overdue and not 2 years as stated in the media. As always we are confident that the truth shall prevail and that attempt to tarnish the reputation of ROKO will also fail,” an official at the construction firm said.
According to ROKO Construction Ltd Managing Director, Mark Koehler, the company has been actively completing projects in Uganda for the last 50 years.
“We have built up a very strong base of suppliers and sub-contractors that we have, throughout the years empowered to prosper in their own rights.”
“We however remain confident that we will find an amicable solution with Roofings and a way forward will be forged, whether by mutual consent or by instructions of law.”
“That notwithstanding, we remain committed to clearing the monies owed and are intent on resolving this matter expeditiously.”
He said the debtors book of ROKO is substantial and assured his clients that ‘this is a course of action that ROKO will never take to recover outstanding payments.’
GOVT OWNs ROKO SHS46BN
According to details obtained by this media house, Government owes Roko Construction Ltd more than Shs46bn.
This is acknowledged by the minister of finance, planning and economic development, Matia Kasaija in a comfort letter dated November 22, 2020 to the Roko Managing Director.
“I acknowledge receipt of your correspondence in which you brought to my attention the long outstanding payments amounting to Shs46,997,280,913.08 due to ROKO Construction Ltd and recognize the same as contributory to your current cash flow problems,” Kasaija said in the letter copied State House and office of the prime minister.
“The purpose of this letter therefore, is to give you assurance and comfort that we are verifying those overdue payments with relevant government agencies in line with the law.”
ABOUT ROKO
For anyone considering doing business in Uganda, think ROKO. ROKO Construction Limited was founded in 1969 and is today one of Uganda’s leading Construction and Civil Engineering Groups. The late Max Rohrer and Rainer Kohler, with 50 years combined experience in Africa, made a commitment to assist in Uganda’s prosperity and development when they founded ROKO.
Together with technical and commercial directors and over 40 qualified civil and site engineers, Rohrer and Kohler led ROKO to the forefront of the construction industry to emerge as the principal contractor in Uganda, and by 2001, we operated only in Uganda and Tanzania but Uganda has now developed to be a hub for activities in neighbouring countries and we have now heavily invested in Rwanda, Eastern Congo, Kenya and South Sudan.
ROKO Construction Limited had groomed into a self-sufficient company in the majority of construction disciplines and provides employment for an average of 3,000 people, placing great emphasis on training its technicians and craftsmen to produce an exceptionally high standard of workmanship. Materials are produced locally and from the Preferential Trade Area wherever possible.
We have a wide variety and quantity of earthmoving and construction equipment available, including traxcavators, bulldozers, dumptrucks, compactors, dragline/cranes to execute most types of Civil/Road works, together with all equipment necessary for general construction of high-rise buildings.
Projects accomplished since 1969 include Bank of Uganda, Workers House, Rwenzori towers, Village Mall Bugolobi, Acacia Mall, Imperial mall Entebbe, Latitude hotel, Mestil Hotel, among others.
