Chinese Contractor Sues Pader LCV Boss Over Stone Quarry Closure

China Railway 18th Bureau Group Company Limited, a construction company, has sued the Pader district LCV Chairperson Col. (Rtd) Fearless Obwoya Oyat for reportedly closing their stone quarry site at Kalawinya parish in Angagura Sub County.  

In 2021, the Chinese construction firm established a stone quarry site at Ladeng rocks in Angagura Sub County after they were contracted by the government to undertake road works in Kitgum municipality under the Uganda Support to Municipal Infrastructure Development-Additional Funding (USMID-AF) program.

It’s however reported that earlier this month the Pader district LCV Chairperson Col. (Rtd) Fearless Obwoya Oyat closed the quarry site as an enforcement of a resolution of council following concerns against the firm from grassroots leaders and the Project Affected Persons.   

Col. (Rtd) Obwoya says council resolved to close the site since the company was illegally crashing stone aggregates without the consent of the district which was also not realizing any locally raised revenue in royalties.    According to Col. (Rtd) Obwoya, the firm commenced operating illegally without signing any memorandum of understanding with the lower local government and the district although they claim of having an agreement with the community members.  

The Pader district Vice Chairperson Justine Ocen reveals that persistent concerns had been registered by the project-affected persons who have implicated the company over injustices including delayed payment, and unfair and inadequate compensation.

According to Ocen, the company had agreed to pay the project affected persons shillings 240 million in full for compensation and as a resettlement package before quarrying commenced but to the latter’s dismay, 86 million shillings has not been paid despite numerous pleas.   

Ocen says despite numerous summons by the district authorities to the company to try to devise ways of mitigating the concerns, they have instead been adamant so the quarry site will only be opened only after binding documents are signed. 

//Cue in: “there is an…….//

Cue out: ……have a talk.”// 

China Railway 18th Bureau Group Company through their legal firm Yiga Advocates claims the district leadership is coercing them to informally pitch into a Memorandum of Understanding committing the firm to pay colossal amounts of money in royalties to the district local government.   The lawyers argue that there is no legal basis under the law within which the district is claiming a colossal amount of money totaling to close over 10 billion in royalties for activities being done at the stone quarry site.   

They have also refuted claims that the company still owes the project-affected persons any pending dues and partial royalties to the host administrative unit of Angagura sub county local government. 

The company now wants court to compel the district Chairperson to reopen the site since its closure has halted the progress of ongoing road works which are funded, budgeted and are of benefit to the Republic of Uganda and her citizens.  

Kitgum Municipality Mayor Richard Ojara Okwera reiterates that indeed the quarry site closure has partially affected the implementation of the road upgrade works particularly on the project's scopes that require stone dust, aggregates and crushed concrete stones as raw materials.   

China Railway 18th Bureau Group Company Limited is upgrading close to 3 kilometers of roads in Pandwong division and within the central business district of central division in Kitgum Municipality. 

The roads include, Oneka Road, Oneka Access 1, 2, 3 and Ayaa Hellen Dean Road, all in Pandwong division; and  Kitgum road, St. Janani Luwum Rd, Philip Adonga Rd, Lakidi Road and Apila Road in Central division.

Ojara says authorities of Kitgum Municipal Council are liaising with the leadership of Pader district to implore them to consider lifting the directive as both parties enter into an out of court settlement of the matter.