Business

Roko “Still Financially Sound” Despite Shs 2Billion Debt to Roofings

ROKO Construction Company Ltd has come out to dismiss concerns about its Shs 2billion debt to Roofings Ltd.

In a statement, ROKO sought to dismiss the debt as insignificant compared to the numerous projects they are currently working on.

The company says currently is working on up to 24 projects worth $206million (roughly Shs800bn).

Roofings Ltd, through their lawyers of Simon Tendo Kabenge last Friday filed ‘a mischievous’ application before the High Court seeking to wound up and liquidate ROKO Construction Ltd over the debt.

In the petition published in the media on Monday, Roofings did not mention the amount of money owed by Roko.

However, documents filed at the Commercial Court in Kampala indicate ROKO owes RoofingsLtd 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.

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“These are the exact dates on when the debt was due; on average 10 month old. 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.”

Roko Construction Ltd officials insist this debt is too small to cause liquidation of the company that is currently active on 24 government construction sites.

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.

It should be noted that ROKO is the only local construction firm majoring in civil works that has put up competition against foreign civil works firms.

According to ROKO Construction Ltd Managing Director, Mark Koehler, the company has been 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 hisclients that ‘this is a course of action that ROKO will never take to recover outstanding payments.’

 

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