Kampala, (UG):- Roko Construction Limited has formally spoken out on why Leader of Opposition (LOP) Hon Joel Ssenyonyi and his team were denied access to its premises, today, Monday October 14th, 2024.
The standoff between Roko Construction officers and the LOP’s team occurred at the company’s offices in Kawempe, where Ssenyonyi, accompanied by several lawmakers, had hoped to conduct an oversight visit.
Ssenyonyi had sought a meeting with Roko to understand how the Shs263Bn bailout, the Company received from Ugandan taxpayers was utilized, yet staff have complained of working for 4 months without a pay. He had been accompanied by lawmakers Santa Okot (Aruu North), Gorett Namugga (Mawogola South), and David Lukyamuzi Kalwanga (Busujju County), on his impromptu visit.
“This Company has been given over Shs263.3Bn and we understand that Government is coming back to request money on their behalf. That is why we came here to establish, what is this money doing? We have been getting calls from the staff who have been telling us for 3-4 months, they haven’t been paid a salary and yet they are required to work,” the Nakawa West MP told Parliamentary journalists in Kawempe this morning.
The Leader of Opposition narrated that he wrote to the company on the 8th October 2024, informing the management of his plan to visit, but upon arrival, his team was denied access, but instead, he was presented with a letter from Mark Koehler, the Managing Director of Roko Construction Company, informing him of the decision by the Board of Directors not to allow the team into the Company premises.
“The Managing Director says that they consulted the Board of Directors and the Board has politely declined to admit you and members of the Shadow Cabinet to the premises of the company. The way Government keeps dishing out money to private companies is very problematic. When the first time Roko was being given money, Government put in a request of Shs207Bn and we said for starters, can we first do due diligence on this company to establish, what is its financial standing. Because at that time, the Speaker in chair told us that if Parliament doesn’t approve the money, the company is going to close down because it was heavily indebted,” the NUP legislator explained.
Ssenyonyi further questioned the fate of the multi-trillion projects Roko Construction Company has been entrusted with like Lubowa Hospital and Parliament new chambers, if the company is still exhibiting signs of financial distress. He also defended the impromptu visit to Roko saying it was a culmination of the distress calls he received from Staff who reported to haven’t been paid 3-4 months, which he said was a serious indication that there is a problem with this Company.
However, speaking out on the scuffle, Roko clarified that Ssenyonyi had earlier been notified that the requested visit would not be entertained. “Roko Construction Limited was informed of the Leader of Opposition’s intent to conduct an oversight visit at our premises on Monday, 14th October 2024,” the construction company said.
“However, this request was respectfully declined, as stated in our letter dated 10th October, which was delivered to Parliament on the same day in both hard and soft copies,” it added.
Roko emphasized that while the Government of Uganda (GoU) holds a preferential shareholding in the company, these shares do not come with voting rights. “The government’s investment entitles it to receive a fixed annual dividend, which will be repaid over a period of eight years, during which Roko is expected to achieve sustainability,” Roko added.
The company also pointed out that oversight of the investment is conducted through two GoU representatives on Roko’s board, who chair the Audit Committee to ensure proper internal controls.
Legal Experts speak out
Legal experts consulted on the matter stated that the Leader of Opposition does not have the mandate to carry out oversight on privately owned companies like Roko, especially since the government only holds preferential shares, not ordinary shares with voting rights. “In cases where the government holds shares, even as much as 49%, it cannot perform oversight as it would in a public institution.
In Roko’s case, the government’s investment will be repaid over eight years, without any managerial or oversight rights,” a legal expert explained.
Despite the standoff with the LOP, Roko maintains that it continues to operate in full compliance with its agreement with the government, ensuring that its internal processes are robust and transparent.
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