In the contract, UNRA made sure that an advance payment worth 20 per cent of the contract sum was secured by a bank guarantee so that in case of a default, the bank coughs back the money to UNRA. Now, immediately after the construction company failed to deliver, UNRA rushed to Dfcu to get its cash something the bank refused to honor, and the only option now to get this money was through court.

On 19th April 2022 Commercial Court delivered its ruling ordering Dfcu without hesitation to cash out 14,259,362,014 and USD 12,413,382 (approx. 44 billion) under the suit guarantees to UNRA.

The ruling was delivered by Hon Lady Justice Jeanne Rwakakooko who reasoned thus; “The interim orders issued by this Court on 27th January 2022 and extended on 28th February 2022 restraining the 2nd respondent from enforcing, collecting or calling on the advance payment guarantees issued by the applicant to the 2nd respondent are hereby set aside and vacated.”

Read Full Ruling Here

In her ruling, Rwakakooko added, “The applicant is directed to immediately execute payment of the sums secured under the suit Guarantees, i.e. UGX 14,259,362,014 and USD 12,413,382 to the 2nd respondent as earlier directed and pursuant to the Demand Letter dated 18th January 2022. Eeach party shall bear its own costs.”