Tycoon Luzzi takes on SMS company over delayed payments
Businessman and politician Abraham Luzzi has dragged SMS Construction Company into a payment dispute over alleged unpaid debts running into millions of shillings.
Luzzi accuses the company of failing to clear outstanding payments for sand and stones he supplied for construction works over an extended period. According to sources familiar with the matter, the businessman claims repeated efforts to recover the money through negotiations and reminders have not yielded results.
The dispute is said to have escalated after the company allegedly failed to honour agreed payment timelines despite receiving the construction materials.
Luzzi further alleges that some company owners and associates frequently invoke the names of Chief of Defence Forces Gen Muhoozi Kainerugaba and Gen Salim Saleh to intimidate suppliers and discourage them from demanding payment.
He claims the alleged association with the senior military figures has created fear among some business people dealing with the company.
Speaking to associates, Luzzi reportedly maintained that the delayed payments have negatively affected his business operations and disrupted other contractual obligations.
The businessman is now considering legal action to compel the company to settle the outstanding balance and compensate him for losses incurred as a result of the delay.
Efforts to obtain a comment from SMS Construction Company were still ongoing by press time.
There was no immediate indication that either Gen Muhoozi Kainerugaba or Gen Salim Saleh is involved in the dispute, and the claims remain Luzzi’s allegations.
The disagreement highlights growing concerns among suppliers and contractors over delayed payments in Uganda’s construction sector, where subcontractors and material suppliers often struggle to recover money from larger firms after delivering goods and services.
