Roko is in charge of constructing UBOS Statistics House in Entebbe.
Uganda Court Clears Rwandan Insurer to Recover Shs14.9bn From Roko’s Assets
The High Court in Kampala has authorised MUA Insurance Rwanda Ltd to enforce a Rwandan judgment worth about Shs14.87 billion against Roko Construction Rwanda Ltd, potentially allowing the insurer to attach proceeds from the construction company’s projects in Uganda.
Commercial Court Judge Susan Odongo registered the September 13, 2024 judgment of Rwanda’s High Commercial Court as a judgment of the Ugandan High Court, clearing the way for its execution within Uganda.
The Rwandan ruling ordered Roko Construction Rwanda to pay MUA Insurance $3.28 million and 1.302 billion Rwandan francs arising from construction and insurance-related obligations, together with legal and procedural costs.
The dollar-denominated awards comprise $2.93 million linked to construction works by Village Health Works and $350,000 relating to insurance for Betts & Townsend Project Management Ltd.
The franc-denominated award includes 1.3 billion Rwandan francs linked to insurance for construction activities by I&M Bank, alongside counsel remuneration, procedural charges and court fees.
MUA Insurance told the Ugandan court that the judgment remained wholly unpaid and that Roko Construction Rwanda had no known assets available for attachment in Rwanda.
Sylver Gatete, MUA Insurance Rwanda’s head of legal services, alleged in an affidavit that the respondent’s directors had fled Rwanda following the judgment.
He said the company was undertaking projects in Uganda whose proceeds could be attached to settle the debt.
The insurer submitted joint-venture agreements showing Roko Construction Rwanda’s involvement with local companies in projects that include construction of the new Parliament chamber and offices for Uganda Electricity Transmission Company Ltd.
The application proceeded without the respondent’s participation, as permitted under Uganda’s rules governing the registration of foreign judgments. MUA Insurance was represented by Patience Akampurira of Kampala Associated Advocates.
Justice Odongo found that Rwanda’s membership of the Commonwealth made judgments from its superior courts eligible for reciprocal enforcement in Uganda.
She said the Rwandan decision was final and conclusive after Roko Construction Rwanda participated in the original proceedings and unsuccessfully appealed against the judgment.
“The legal obligation created by the Rwandan court is a debt that follows the debtor,” Odongo said.
“It would be a travesty of justice to allow a company to evade its adjudicated liabilities by merely crossing a border while continuing to profit from large-scale contracts in the neighbouring state.”
The judge emphasised that the Ugandan court was not sitting as an appellate court to reconsider the merits of the Rwandan dispute. Its role was limited to determining whether the foreign judgment met Uganda’s statutory conditions for registration.
She found that the application had been filed within the six-year statutory period, the debt remained enforceable in Rwanda and the awards concerned commercial obligations rather than taxes, fines or penalties.
The court also found no evidence that the judgment had been obtained through fraud or that its enforcement would violate Ugandan public policy.
Certified copies and an English translation of the Rwandan ruling had been provided.
“In a globalised commercial world, where a debtor’s directors might flee one jurisdiction to seek refuge in another, the reciprocal enforcement mechanism is the primary shield against the frustration of legitimate legal obligations,” Odongo said.
The July 12 ruling does not itself constitute payment to MUA Insurance.
It gives the insurer legal authority to begin execution proceedings against eligible assets or proceeds belonging to Roko Construction Rwanda within Uganda.
The court also awarded MUA Insurance the costs of bringing the Ugandan application.
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