× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Company to pay Sh7.1 million for the sins of owner, 20 years later

NEWS
By Everlyne Kwamboka | Jun 2nd 2019 | 2 min read
By Everlyne Kwamboka | June 2nd 2019
NEWS

A verbal decision made by a business mogul on a Sh220 million property in Uganda has come back to haunt his company years after his death.

Bobmil Properties Limited has been ordered to pay Davidson Maina T/A Bills Consults Sh7.1 million with interest for a Bill of Quantities (BQ) he prepared for the company’s chairman, the late Bharat Nathanlal (Bobby) Shah.

This is after three appellate judges set aside a High Court decision that had absolved the company from paying Mr Maina, a quantity surveyor, the money for a deal he entered into with Shah in October 1997.

Shah is said to have given Maina oral instructions to prepare for him a BQ for a block of flats and a health club he intended to build on one of his pieces of land in Kampala, Uganda. This was after architects and engineers produced architectural and structural drawings.

In line with the agreement, Maina prepared the BQ before the tender stage and based it on an estimated project cost of Sh220 million.

He then forwarded his fee note of Sh4.1 million to Shah based on the cost of the project but was asked to handle the tender valuations, where he chose the lowest bidder at Sh284 million.

This increased the fee note to Sh7.1 million, a figure Shah refused to settle on August 19, 1998 on the grounds that the fee could only be paid after commencement and funding of the project, adding he was only ready to pay Sh25,000.

Maina is said to have responded to Shah’s letter that the Sh25,000 was in bad taste and could not even cover the amount he spent on telephone charges during the preparation of the BQs.

“This coming from a client of long standing as yourselves is really disappointing. Surely, even a doctor is paid for more than the cost of the ink and paper he uses to write a prescription,” he said in his letter dated September 30, 1998.

Share this story
State agencies at crossroads over domestic tourism
Ban on PSVs from entering national parks sparks accusations of discrimination against low-income residents
China rejected Kenya's request for Sh32.8b debt moratorium
China is Kenya’s largest bilateral lender with an outstanding debt of Sh692 billion.
.
RECOMMENDED NEWS
Feedback