KIBUNGO - After failing to honour a contract to construct a market, Kayonza district administration has warned the construction company that it’s on the verge of losing the contract.

The company, EDCO, that belongs to cash strapped Kibungo diocese, received Rwf 20 million as down payment after it won the multi-million tender but failed to even prepare the site for construction.

Damas Muhororo the Mayor of the district said that they had contracted EDCO to build a modern market in a tender worth Rwf 120 million in the town centre, but so far there are no signs of construction work.

"We gave them a down payment of Rwf 20 million, and nothing has happened,” Muhororo said. ”We are now seriously thinking of cancelling the tender altogether.”

According to Edward Kivunenka the finance officer of the district, the diocese is technically insolvent.

"We recently paid them Rwf 6 million but the diocese could not access it, as it was taken up by the bank to offset part the numerous debts it incurred,” he said.

Denise Uwera who is in charge of overseeing the construction of the market, also said that because the diocese has accumulated so many debts in different banks, the normal functioning of EDCO has been severely affected.

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