The Uganda Government through the Ministry of Finance has tabled a motion seeking parliamentary approval of Shs202.13bn aimed at purchasing shares in Roko Construction Limited.
The motion was tabled by Henry Musasizi (pictured), State Minister for Finance (General Duties) during Thursday’s plenary sitting. He was however heckled by MPs as he explained Government’s interest in buying shares in the troubled company.
“I beg to lay on table the proposal to acquire 150,000 preferential shares into Roko Construction Limited which is equivalent to Shs202.13Bn in Roko Construction Limited,” Musasizi said.
The development comes at the time Roko Construction Limited was dragged to court by 27 companies over its outstanding debt amounting to Shs40b in local currency and $36m (about Shs131b) in foreign currency.
It is reported that Government owed Roko Shs46.9Bn that saw the company fail to pay its business partners.
In November 2020, Matia Kasaija, the Minister of Finance wrote to Roko promising to clear government debt within four months, but the commitment wasn’t met prompting government to take the latest move.
One of the companies that threatened to attach assets of Roko was Roofings that demanded Sh2bn after it supplied Roko with steel products, but the Construction company never paid.
Founded in 1969 by the late Max Rohrer and Rainer Kohler, Roko has been a construction giant and has been behind major construction projects like Workers House, which belongs to the National Social Security Fund and the company is currently constructing the new chambers at Parliament, Inspectorate of Government new offices and is on site constructing the new judiciary offices in Kampala.
Speaker Among sent the motion to Parliament’s Finance Committee for scrutiny and report back to Parliament within 10days before a final decision is taken.
