By Ambrose Okwanga I June 3rd 2026
The Office of the Prime Minister (OPM) is set to terminate the contract awarded to CMD Investment Limited for the construction of the Lango Cultural Centre after the company allegedly received government funds but failed to carry out the works.
The move follows revelations that CMD Investment Limited abandoned the project despite reportedly receiving about UGX 900 million from the government.
The company is accused of failing to undertake any substantial construction work at the site.
Assistant Commissioner for Procurement and Disposal at the Office of the Prime Minister, Yerusa Nyangoma, made the disclosure during an inspection visit to the Lango Cultural Centre project site to assess the progress of the construction works.
During the inspection, Nyangoma found that CMD Investment Limited had not executed any meaningful work on the project despite being paid government funds.
He revealed that the initial foundation works had instead been undertaken by Perl Shelter Promotions Uganda Limited, a company owned by Robert Ocen, under a subcontracting arrangement.
According to Nyangoma, Perl Shelter Promotions carried out the foundation works worth approximately UGX 130 million but was never paid by CMD Investment Limited yet the money was released to the account of CMD.
Speaking to cultural leaders present at the site, Nyangoma said the Permanent Secretary in the Office of the Prime Minister, Alex Kakooza, had already written to the Solicitor General seeking approval to terminate CMD Investment Limited’s contract and re-award the project to a more capable contractor.
He explained that although OPM had long intended to terminate the contract, concerns over possible legal disputes delayed the process pending guidance from the Solicitor General.
Nyangoma further disclosed that Kakooza had written to the bank through which the government released funds to CMD Investment Limited, seeking to establish the status of the approximately UGX 900 million paid to the contractor and explore avenues for recovering the money once the contract is terminated.
He emphasized that the government remains committed to ensuring the project is completed as quickly as possible to meet the expectations of both the people of Lango and the government.
Last week, a team of engineers from the Uganda Institution of Professional Engineers inspected the project following reports of visible structural defects, delays among others.
The government allocated UGX 3.5 billion for the construction of the Lango Cultural Centre.