2 September 2014

Uganda: Housing Finance Bank Disowns Eutaw Papers

Housing Finance bank has said it never issued a credit guarantee to Eutaw construction company to win the Mukono-Katosi road project.

HFB officials said while Eutaw as a firm holds an account with the bank, they had not issued any collateral instrument for the company.

Mathias Katamba, the HFB managing director, told reporters at the bank head office in Kololo on Monday: "If it so happened that anyone used that guarantee, it was fake. We don't have any application for that guarantee in the bank... We are erroneously being portrayed as having issued the instrument."

Uganda National Roads Authority (Unra) contracted Eutaw at Shs 165bn and paid them initial deposit of Shs 24bn for Mukono-Katosi project. But the company in America, which purportedly won the contract, has since denied any involvement with Unra. Meanwhile, Eutaw that won the deal has since hired a Chinese firm to do the job.

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