Contractor Refuses to Handover Kabale Hospital Staff Hostel Citing Unpaid Balance

Musuuza Building Contractors Limited, the contractor responsible for building a staff hostel at Kabale Regional Referral hospital has declined to hand over the completed structure.

The contractor cites unpaid extra expenditures amounting to Shs 790 million that were incured during the construction. The hostel, valued at Shs 7.8 billion was funded by government through the ministry of Health. Construction began in May 2017 and was due for completion last year on June 3.

The almost complete facility is aimed at addressing accommodation challenges for health workers and medical interns. It features apartments, a recreational center, a multi-purpose center, and a grocery center.

Bernard Mugisha, a site engineer from Musuuza Building Contractors explains that due to the challenges caused by the COVID-19 lockdown, work stalled and they officially informed all relevant authorities.

Mugisha reveals that as a result of the delays and increased prices of building materials between 2020 and 2022, the contracting company incurred extra costs. He asserts that until government settles this amount, the structure will not be handed over.

Dr Emmanuel Nzandora, acting Kabale hospital director has expressed surprise at the contractor’s demand for additional funds. He states that the hospital is currently struggling to find accommodation for intern doctors and was unaware of the extra payment being requested.

Godfrey Nyakahuma, Kabale resident district commissioner, accuses the contractor of withdrawing security personnel from the site without informing the hospital administration. Beatrice Akello Akori, the minister of State for Economic Monitoring directed the contractor to hand over the structure so that it can fulfill its intended purpose.

She emphasizes that the matter will be investigated since the contractor did not adequately communicate the issues they encountered to relevant stakeholders. Akori warns that failure to comply with the directive may result in the contractor’s arrest. 

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