A local company whose Sh1.4 billion contract was terminated by Tatu City has asked the High Court to maintain temporary orders stopping its eviction from the mega real estate projects pending arbitration.
Ongata Works through lawyer Joram Mwenda Wednesday told the court that the company’s reputation would suffer hugely if Tatu City kicks them out of the site.
The Sh1.4 billion contract was terminated on December 13, forcing Ongata Works to move to court where they obtained an order stopping its eviction until January 16.
Tatu terminated the contract, saying Ongata Works was doing a poor job at the multi-billion shilling satellite city that will feature high-end homes, private schools, offices, shopping malls, hospitals, hotels, light industries and entertainment spots.
Besides Ongata Works, more than a dozen firms are handling other infrastructure works at Tatu City including Steel Structures Ltd, Shinehome International Company and STECOL Corporation.
“They have failed to exhibit any documents citing Ongata for any failure,” said Mr Mwenda.
He urged the court to allow the company to stay on site as the dispute is being resolved by the board.
On its part, Tatu City through lawyer Issa Mansur urged the court to dismiss the case stating that there was no contract to be preserved. He said the agreement provided for a clause in which Tatu City could terminate the contract at any stage.
Mr Mansur said since the termination in December, the contractor had failed to take steps to refer the matter for arbitration.
Ongata Works was to undertake the building of roads, sewer and drainage systems and was initially set to complete construction on November 7. The court will give its ruling next Wednesday.