A Kampala-based construction company has dragged Samco to Court over issues of delayed payment during the implementation of the Shs470 billion Akii- Bua Olympic Construction Project.
Through his lawyer, Bashfame Company Limited is demanding a total of Shs3.9 billion (approximately $125,081.00) and Shs726m as the outstanding amount due on the Interim Payment Certificates and compensation for the delay.
This has raised fears that if such disputes are not resolved urgently, they are likely to cause delays and disruptions in the implementation of the project.
Samco Construction Company (SAMCO) – an Egyptian firm, was awarded the Design Build contract to construct Akii Bua Stadium Olympic Stadium in Lira City.
Agreements that this publication has accessed show that Samco sub-contracted Bashfame to do earthworks, excavation and backfilling, clearing and grubbing, removal of existing structures, laterite material importation and mixing and excavation of piles and supply of sand.
The subcontractor says Samco has failed to make payment of the entire sum due under the Interim Payment Certificates (IPC) within the time stipulated in the subcontractor agreement.
President Yoweri Museveni commissioned the construction of the 20,000-seat sporting facility in the northern Uganda on January 29, 2025. SAMCO was given a mandate to deliver the Shs470 billion ( project within 20 months. The project which commenced on May 3, this year, is expected to be completed on February 2, 2027.
The stadium is expected to be the official premises of a 20,000-seat main stadium with an athletic track, training facilities with at least two changing rooms; a 2,000-seat multi-sport indoor stadium, a 25-metre semi-Olympic swimming pool, outdoor courts for basketball, netball, volleyball, and badminton, and a 1,000-vehicle parking facility.
According to the architectural drawings, the stadium will also have roads, utilities, ICT systems, a sewerage treatment plant, landscaping, perimeter fencing, and security systems. Other facilities include; a fully furnished clubhouse for stadium operations, a 60-room hostel, five sports pitches, and a borehole to reduce water maintenance costs.
Mr Mathew Amanya, the managing director of Bashfame Company Ltd, said they executed their obligations under their respective subcontracts with their approval and supervision.
“We completed the earthworks, construction of the temporary wall fence and were diligently executing the subcontracts for supply of sand and excavation and backfilling the footings (piles) until we were financially constrained due to financial constraints and frustration by SAMCO’s refusal to pay for completed works,” he said.
The SAMCO project manager, Eng Mohammed Nazih, issued a warning to Bashfame Construction Company on June 3, 2025, threatening to terminate their contract.
But Bashfame maintained that in accordance with the terms of their contract, they are entitled to suspend performance in the event of non-payment.
“The suspension of work is a direct result of your breach, not ours. We emphasise that we have acted within our rights and in good faith to preserve the contract and avoid further complications,” said Moses Katongole, the Project Manager for Bashfame Company Limited.
“We have tried to engage the contractor and we have been very patient. But the delayed payment has placed us in a challenging position with our service providers and subcontractors. Many of them have not been paid, and as a result, we are unable to secure additional resources and materials needed to maintain the project’s progress,” said Mathew Amanya of Bashfame Company Ltd.
Bashfame Company Limited temporarily suspended all physical works on the site. “This decision, they say, was necessary to avoid further financial strain. So far, this subcontractor has executed the contract from December 2024 to April 2025.
Another source who preferred anonymity said there is another subcontractor who went on strike early this week over non-payment for the last six months. She was supplying food to the workers on site and has not been paid.
Contractor’s response
Eng Nazih confirmed that Samco entered into an agreement with 30 subcontractors to support them in the implementation of the project, adding that they were not having any issues with any subcontractor.
“Money is not a problem and we always pay our subcontractors upon completion of works given to them,” he told our reporter at his office on June 17, 2025.
Akii- Bua Olympic Construction Project is financed by the Government of Uganda and National Council of Sports is the project’s client.
Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
