Council gets €28m dig-out
The department of the Environment has coughed up €28m of the €32m which was owed to Uniform Construction by Limerick City Council after they won damages for being sacked as contractors on the Limerick Main Drainage Scheme six years ago.
Were Limerick City Council forced to pay the bill themselves, it would have meant financial ruin for them.
However they argued, successfully it seems, that because they were acting on legal advice from the Environment Department when they decided to sack Uniform, it should be them that should pay it an not the council.
The Council is confident that it can recover the remaining €4m
Uniform construction were sacked from the drainage scheme after they were accused of not performing their obligations with due diligence. The company was prohibited from applying for public contracts while legal procedings went through the courts system.