Corporate News
Bridgeways Contractors have filed an application in the High Court
claiming Vil Limited is liquidating its assets in Kenya to evade paying a
Sh165 million debt. PHOTO | FILE
By BRIAN WASUNA, bwasuna@ke.nationmedia.com
A Kenyan road contractor has asked the High Court to
place a caveat on Indian firm Vil Limited’s assets over a Sh165 million
debt it claims arose from a road construction deal.
Bridgeways Contractors have filed an application in the High
Court claiming Vil Limited is liquidating its assets in Kenya to evade
paying the sum.
Vil Limited subcontracted Bridgeways to construct a
40 kilometre dual carriage way road connecting Kakamega to Kaburengu in
Western Kenya.
The Kenyan firm now claims Vil Limited has
advertised for the sale of all its property in Kenya and has planned to
leave the country without paying its debts. Vil Limited is yet to
respond to the suit.
“Bridgeways performed its obligation as per the
contract and Vil Limited has refused to pay the plaintiff Sh165.5
million for the work done. The defendant has also started to advertise
its property for sale with the intention of leaving the country and to
avoid paying the plaintiff,” Bridgeways says.
The subcontractor has attached advertisements from
online portal OLX as part of its evidence against Vil Limited. It wants
Vil Limited compelled to deposit Sh165 million in court as security, as
it is fearful that the Indian firm may have sold off all its assets by
the time the suit is determined.
Bridgeways says it took a loan to fund the project
and is now unable to repay it because of frustration from Vil Limited.
The project is part of Kenya’s plan to build a 10,000 kilometre road
network by 2018.
The roads will be built in three phases with the
first stage covering 2,000 kilometres, the second 3,000 and the final
Sh5,000 with investors not showing interest in building roads in
Northern Kenya due to their shorter stretches and insecurity in the
region.
The first 2,000 kilometres have been divided into
45 lots and the Wednesday tenders were for the initial nine bids. Vil
Limited subcontracted Bridgeways in August last year to put up the
Kakamega-Kaburengu road.
Road construction in Kenya has often lagged due to
cash shortfalls, with only 14,100km or 8.7 per cent of the total network
tarmacked.About 49 firms, 45 per cent locals, have been shortlisted in
the project that will create nearly 137,000 direct jobs.
Bridgeways slapped Vil Limited with an invoice for the work in April, then sent a demand letter this month.
Bridgeways says Vil Limited has admitted to owing
the amount in communications between the two firms and that the Indian
firm even furnished it with vehicle log books as security. Vil has
allegedly advertised for the sale of 81 heavy duty vehicles used in road
construction.
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