Technicians relocate power transmission cables. FILE PHOTO | NMG
Local operators of global technology firm Siemens AG, which is
building 1,000km high voltage direct current lines between Ethiopia and
Kenya, is seeking the court’s protection to stop a firm that is
threatening to file an insolvency petition over a disputed bill.
Siemens
says in court filings it is apprehensive that if not restrained by the
court Afrikon Limited might go ahead with its threat to file a winding
up petition causing it reputational damage.
Siemens was initially awarded the contract in a consortium with construction company Isolux Corsan.
The
tender was placed by the Ethiopian Electric Power Corporation and the
Kenya Electricity Transmission Company and funded by the World Bank.
Insolvent
At
the centre of the dispute is Sh11.9 million outstanding debt that
accrued from sub-contracted work commissioned by Isolux, which has since
exited the project after being declared insolvent.
“A
permanent injunction do issue barring the defendant… from carrying out
any of the threatened actions contained in the letter dated July 16,
2018…and specifically restraining the defendant from instituting or
commencing or filing any proceedings related to the alleged insolvency
of the applicant on the account of Sh11.9 million claimed in the said
letter,” reads part of Siemens’ petition presented in the High Court.
The
firm says it has no obligation to honour the amount demanded by
Afrikon, adding that the case can jeopardise the infrastructure project
that is worth about Sh45 billion.
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