This archive report was first published on 25 July 2019.
July 25, 2019
A dispute between two consultant firms working on the Lamu Port project has deepened, with one of the firms seeking a court order to deposit Sh200 million as security for work already done.
AIA Architects Ltd, a local consultant, has filed a lawsuit against Yooshin Engineering Corporation, a South Korean company, over a dispute regarding the design and supervision of the first three berths of the Lamu Port.
The local consultant wants the South Korean firm to deposit the money in court, pending the hearing and determination of the suit.
AIA Architects Ltd is also seeking an order of injunction against Yooshin Engineering Corporation, restraining it from conducting works of design, construction, and supervision of buildings and associated infrastructure of the port or entering into any sub-consultancy agreement with any other entity.
The local consultant argues that Yooshin Engineering Corporation has ignored court orders and proceeded with the construction of the port without its consent.
Yooshin Engineering Corporation has, however, objected to the suit, saying the court lacks jurisdiction to hear and determine the matter and wants it referred to arbitration in accordance with the contract between the parties.
Justice Patrick Otieno has fixed the case for hearing on July 29.
