Contractor sues Chinese firm over Sh20m debt

China Road and Bridge Corporation workers proceed with the construction of the standard gauge railway overpass at Taru, along the Mombasa-Nairobi highway, on May 25, 2016. A contractor assigned to work on sections of the railway project in Makueni has sued a Chinese firm alleging it is owed money. PHOTO | KEVIN ODIT | NATION MEDIA GROUP 

In Summary

• In May 13, Mjomba Ltd raised a measurement certificate for the works done for Mvule Ltd as of May 9, totalling Sh20,281,856.60.
• Alan Hu, a director at Mvule Ltd, said in an affidavit that the tenuous charge against Mjomba Ltd has no foundation.

By RICHARD MUNGUTI
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A company sub-contracted to work on sections of the standard gauge railway (SGR) project has sued a Chinese firm claiming it is owed Sh20 million.

In a case filed at the High Court, Mjomba Agencies Ltd alleged that Mvule Investments Limited has not yet paid it Sh20,281,856.60.

Mjomba Ltd, through its law firm Odera Obar & Co, said in its petition it was contracted in January 18 by Mvule Ltd to do earth work at section four of the SGR project at Sultan Hamud in Makueni County.

The works it undertook included clearing surface, stuffy material, barrow pit access, road construction and maintenance, culvert transition, backfill and slope brush, among others.

"It was a term of the said agreement that measurement certificates for the work done shall be raised jointly every month,” Mjomba Ltd said.

The company further stated that payments would be made within two weeks after the receipt of the invoice.

In May 13, Mjomba Ltd raised a measurement certificate for the works done for Mvule Ltd as of May 9, totalling Sh20,281,856.60.

“In breach of the agreement the defendant has refused and or neglected to pay the sum to the plaintiff as agreed under the contract,” Mjomba said.

The company is now asking the court to compel the defendant, through its proprietors Xuren Wei and Yunwen Hu, to pay the outstanding amount.

However, Mvule Ltd has asked the High Court to stay the hearing of the case and refer the dispute to arbitration, in accordance with the sub-earthwork and ancillary construction contract signed by the parties.

“The dispute which has arisen between the parties falls within the scope of the arbitrations clause,” states Odera Obar & Co.

Alan Hu, a director at Mvule Ltd, said in an affidavit that the tenuous charge against Mjomba Ltd has no foundation.

He said that Mjomba Ltd refused "to conduct a joint inspection of the works allegedly done".

The case has been fixed for a hearing on November 23.