Lira, Uganda | The stalled construction of the Lango Palace at the Lango Cultural Centre has come under renewed scrutiny following a visit by the Uganda Institution of Professional Engineers to establish why the multi-billion shilling project halted despite government funding.
The delegation, led by Eng. Dr. Anania Mbabazi from Makerere University visited the site amid growing concerns over delays in completing the palace project.
Speaking during a meeting held last week at the Lango Cultural Centre, Dr. Mbabazi said the team was investigating reports surrounding changes in the palace design that allegedly affected the implementation of the project.
He explained that engineers received reports indicating that there were two different architectural designs — the original design used to process the contract and another allegedly introduced later before construction works commenced.
According to Mbabazi, the design changes prompted CMD Investment Ltd, the contractor hired by the Office of the Prime Minister, to demand an additional UGX 1.29 billion on top of the initial UGX 3.5 billion contract sum. The company also reportedly demanded UGX 813 million as compensation for time lost during the three years the project remained inactive.
However, Lira District Engineer Geoffrey Ongala said it was his first time hearing that the project stalled because of design-related challenges. Ongala noted that at no point had CMD Investment Ltd formally raised such concerns with his office.
Engineer Geoffrey Enen Okello, who sits on the Contracts Management Team representing Tekwaro A’Lango, urged the engineering body to recommend termination of the contractor’s agreement. He argued that the government should award the project to another company with the technical capacity and resources to complete the works.
Enen further alleged that CMD Investment Ltd subcontracted the project to Shelter Promotions Uganda Ltd without notifying the relevant authorities.
Principal Assistant Secretary in the Office of the Prime Minister John Baptist Ssendule said CMD Investment Ltd had already received UGX 1.2 billion for work completed. He, however, clarified that the funds were secured through a bank guarantee arrangement that would allow the government to recover UGX 1.07 billion should the contractor fail to finish the project.
Ssendule revealed that the Permanent Secretary in the Office of the Prime Minister had already written to the Solicitor General seeking legal clearance to terminate the contract.
Meanwhile, Humphrey Ecumar from Ubuntu Consultants advised the government against compensating the contractor for alleged wasted time, arguing that the company’s leadership could no longer be trusted.
The Speaker of Tekwaro A’Lango, Willy Omodo Omodo, accused CMD Investment Ltd of inflating expenses by reportedly claiming UGX 150 million for staff accommodation despite the cultural institution having provided free housing and storage facilities.
Omodo Omodo described the claims as corruption and called for immediate termination of the contract, proposing that the remaining works be handed to a competent company from the Lango sub-region. He further accused the contractor of failing to pay its workers.
The Uganda Institution of Professional Engineers is expected to issue its final verdict on June 18, 2026, a decision that could determine whether the government proceeds with cancelling the contract or allows the contractor to continue with the project.