Delayed payment and disputes have cropped up in the implementation of Akii-Bua Olympic Stadium construction project, leading to sickening subcontractors-client relationships.
The beneficiaries and development experts warn that if not resolved urgently, the disputes are likely to cause delays and disruptions in the implementation of the Shs470b.
President Yoweri Museveni officially flagged off the construction of the 20,000-seat sporting facility in the northern Uganda’s city of Lira on January 29.
Signed on December 6, 2024, the contract was awarded to Samco National Construction Company – an Egyptian firm – that was tasked to deliver the project within a period of 20 months.
The project commenced on May 3, and February 2, 2027 is the revised date of its completion.
Scope of work
The complex will feature a 20,000-seat main stadium with an athletic track, training facilities with at least two changing rooms.
It will also house a 2,000-seat multi-sport indoor stadium, a 25-metre semi-Olympic swimming pool, outdoor courts for basketball, netball, volleyball, badminton and a 1,000-vehicle parking facility.
Additionally, the stadium is expected to have comprehensive infrastructure- roads, utilities, ICT systems, a sewerage treatment plant, landscaping, perimeter fencing and functional security systems.
A fully furnished club house for stadium operations, a 60-room hostel, five sports pitches, and a borehole to reduce water maintenance costs are other facilities that the stadium will have.
Subcontracts
The contractor hired the services of 30 sub-contractors to fast-track the process of implementing the project and meet deadlines.
Among them is a Kampala-based Bashfame Company Ltd, whose mandate under this subcontractor agreement included doing earthworks, excavation and backfilling, clearing and grubbing, removal of existing structures, laterite material importation and mixing and excavation of piles and supply of sand.
They were also tasked to construct a temporary wall fence around the stadium and supply 800 trucks.
However, just a few months down the road, Bashfame laid their tools citing financial constraints and frustration caused by SAMCO’s alleged refusal to pay for completed works.
Demand notice
Through their lawyer, Kampala Associated Advocates, Bashfame is demanding for the immediate payment of about Shs3.9b ($ 1,125,081) and an additional Shs726,629,583 as the outstanding amount due on the Interim Payment Certificates (IPCs) and compensation for the delayed events allegedly caused by SAMCO.
According to a Demand Notice dated September 26, 2025, the subcontractor wants the payment made within seven days from the date of receipt of the letter. SAMCO National Construction Ltd received the said letter on September 26.
Contractor’s response
Eng Mohammed Nazih, the Akii-Bua Olympic Stadium project manager, said while Samco signed memoranda of understanding with 30 subcontractors to support them in the implementation of the project, they were not having any issues with anybody.
‘Money is not a problem and we always pay our subcontractors upon completion of works assigned. While the original contract price is $29.74 million, we received advance payment of 20.7 percent on May 3, – the project official commencement date,’ Nazir told our reporter at his office on June 17.
Surprisingly, in a June 7, 2025 letter to Bashfame, Eng Nazih indicated that some works undertaken by the subcontractor was not implemented according to the specifications.
‘You claimed that you have completed the work, and you claimed that you ‘advised us to follow a certain design which we disregarded’. You are kindly requested to send [a] copy of the letter in which you sent your advice and our rejection. Also, why did you complete the work and hand it over although you knew it’s not according to specification?’ wrote SAMCO’s project manager.
Mathew Amanya, the managing director of Bashfame Company Ltd, maintains that they commenced works and executed their obligations under their respective subcontracts with their approval and supervision.
“We completed the earthworks, construction of the temporary wall fence and were diligently executing the subcontracts for supply of sand and excavation and backfilling the footings (piles). until we were rendered unable to continue due to financial constraints and frustration by Samco’s refusal to pay for completed works,’ he said.
On May 28, the subcontractor sent a notification of temporary suspension of physical works on site to the main contractor (SAMCO), highlighting a ‘critical issue’ affecting the continuation of their activities.
‘Despite our ongoing efforts, the delayed finalisation of the Interim Payment Certificate (IPC) has placed us in a challenging position with our service providers and subcontractors. Many of them have expressed concerns and demands for payment, and as a result, we are unable to secure additional resources and materials needed to maintain the project’s progress,’ said Moses Katongole, the project manager of Bashfame Company Ltd.
Katongole added: ‘Regrettably, unless all IPCs process is expedited and full payments are released forthwith, we will be forced to temporarily suspend all physical works on site. This decision is necessary to avoid further financial strain and to ensure the sustainability of the project.’
Akii-Bua Olympic Stadium (main contractor) project manager, Eng Mohammed Nazih, issued a warning to Bashfame on June 3, 2025, and threatened to terminate their contract.
But Bashfame Limited Company maintained that in accordance with the terms of their contract, they are entitled to suspend performance in the event of non-payment.
‘The suspension of work is a direct result of your breach, not ours. We emphasise that we have acted within our rights and in good faith to preserve the contract and avoid further complications,’ said Katongole.
Protest
On September 25, 2025, a group of 10 women who had been supplying food to workers at the construction site for another subcontractor called International Modern Construction Ltd, protested at the site over delayed payment.
The angry protestors stormed the subcontractor’s office and demanded explanation why they had not been paid for 14 days yet they were supposed to be paid on a daily basis.
Betty Olal, the chairperson of those supplying food to Akii-Bua Olympic project workers, said they sell a plate of food at Shs2,000.
Mouad Etab, the director of International Modern Construction Ltd, indicated that they were going to clear the aggrieved women this week.
Leaders speak out
Morris Chris Ongom, the director of National Chamber of Commerce and Industry for Lango Sub-region, said the Chamber of Commerce, Lira Chapter, warned that such concerns are potentially damaging.
‘If true, these issues could disrupt the progress of a nationally significant infrastructure project, delay job creation and negatively impact the local economy and confidence in public-private partnerships,’ said Ongom, who is also the chief executive officer of Global Forum for Development (GLOFORD), a non-profit organisation.
He added: ‘If nothing is done to resolve the reported payment disputes, construction on the Akii-Bua Stadium may stall, leading to significant delays or even a total halt of the project. This will disrupt the project timeline, erode public trust, and could result in penalties or contract complications for Samco Construction. It may also create tensions among stakeholders and discourage future investment in similar projects in the region.’
‘Losses and losers’
According to Ongom, the likely losers include SAMCO Construction, the subcontractors, the government of Uganda, and most importantly, the people of Lira and the broader Lango Sub-region.
‘The losses may include unpaid dues for completed works, lost jobs for local workers, missed economic opportunities for local businesses, reputational damage to both the contractor and government, and a delayed or unfinished stadium-denying the region a much-needed sports and development facility,’ he explained.
Richard Cox Okello Orik, Lira District chairman, warned that if the matter is not handled harmoniously both by the ruling National Resistance Movement (NRM) government and the people of Lango stand to lose.
Lira City acting education officer, Andrew Ogwang Oyang, agreed: ‘The Ugandan government will lose because it has invested a lot of capital in the project.’
The Minister of State for Sports, Peter Ogwang, neither picked our calls nor replied to our message to his known mobile number.
He, however, told President Museveni at the site on January 29, 2025 that when he brought the contractor there, the people of Lango told him ‘no Akii-Bua, no votes’.
‘Now that Akii-Bua is here, the votes are here,’ said Ogwang, further reassuring the country that the Akii-Bua Stadium will be a state-of-the-art facility in the country.
‘Forget about Namboole, and Hoima. This facility is going to be the best in the whole country. Besides Akii-Bua Stadium, the government will construct a state-of-the-art training facility at Lira University,’ the minister added.
ABOUT THE PROJECT
The project is being financed by the government of Uganda, and its client is the National Council of Sports.
The project manager said while earthworks were almost 100% done, the overall progress stood at 10 per cent as at June 17, 2025.
As of June 17, 2025, all the mobilisation for the site was standing at 100%; earthwork works; 85 per cent and reinforced piles and reinforced concrete columns at 12 per cent.
At least 22 per cent of reinforced footings – crucial structural elements designed to distribute the weight of a building or structure across a wider area, preventing excessive settlement – had been completed.