Lawyers have started the process of winding up controversial city tycoon Patrick Bitature’s electricity Company as his financial troubles deepen.

Early this week, David Mpanga of AF Mpanga Advocates placed an advert in the newspaper revealing the kickoff of the process of winding up Bitature’s Electro-Maxx Uganda Limited by Oryx Oil Uganda Limited.

“Take Notice that on the 11th day of September 2024, a petition for winding up in respect of Electro-Maxx Uganda Limited was lodged in the High Court (Commercial Division),” the advert read in part.

Electro-Maxx has been struggling with a number of Court cases including the Shs4.3bn legal battle with Uganda Electricity Transmission Company Limited (UETCL) and Citibank where the company is accused of trying to defraud the bank and the government owned electricity company.

theGrapevine exclusively learnt that ABSA bank has also started the process of auctioning Bitature’s multi million properties after he lost the application where he was trying to frustrate the bank’s effort to recover Shs50bn which he secured on behalf of his Electro-Maxx company.

In his application, Bitature wanted Justice Grace Magala of the High Court Commercial Division to issue a directive stopping the bank from recovering the said amount of money claiming that he was not indebted to the bank.

He added that he has never signed a contract or stood as a guarantor.

He maintained that the judgement which the bank wanted to execute against him is before the Court of Appeal.

Bitature through his lawyers led by Brian Moogi claimed that Electro-Maxx filed an application before the Commercial Division of the High Court seeking for stay of execution against it based on a Consent judgment.

He pleaded to the Court that he has a good defense to the suit and it is just and equitable and in the interest of justice that the application and orders sought for are granted.

However, ABSA through their lawyers lead by Counsel Timothy Kanyerezi Masembe based on the affidavit of Esther Masawi, the bank’s Head Business Support and Corporate Recoveries to protest the application noting that it abuses the court process and was filed in bad faith.

She explained to court that Bitature was being sued as a guarantor for indebtedness of Electro-Maxx (U) Limited (the Principal Debtor) which indebtedness was agreed to by a consent judgment dated 24^th May, 2020 that was signed by Bitature on behalf of Electro-Maxx.

She added that they agreed that the indebtedness was subsequently reduced upon the payment of 13 monthly instalments and as at 31^st August 2023, the indebtedness stood at USD $ 13,568,876 which is now the subject of the demand for payment on Bitature as a guarantor.

In her ruling, Justice Magala established that the application for stay of execution which Bitature claimed was still pending before the court over the matter was dismissed on the 23^rd October, 2023 by His Lordship Justice Stephen Mubiru the head of the Commercial Division of the High Court.

The judge further established that Bitature and Simba Oil company signed as a guarantor on behalf of Electro-Maxx when it was securing a loan of USD 40,730,000 and USD 10,000,000 from the financial institution in 2014.

“In my opinion, the two instances i.e. the Consent Judgment dated 15th May 2020 and endorsed by Court on the 21^st May, 2020, with its Variations and the guarantor liability of the Applicant under the Guarantee document dated 30^th April, 2014 and Guarantee document dated 6th August 2018, are quite distinguishable. The latter can be enforced against the Applicant independently,” the judge stated.

The development comes at a time when Bitature is still battling with the South African Money Lending Company the M/S Vantage Mezzanine Fund 11 Partnership which wanted to auction his companies; Simba Properties Investment Company Limited and Simba Telecom Limited.

Vintage agents also wanted to illegally sell by auction; Elizabeth Apartments at Kololo Kampala, Protea Hotel at Naguru Kampala, Sky Hotels at Kampala, Moyo Close Apartments and Kololo Gardens claiming that they are demanding Bitature over $32m.

By Sengooba Alirabaki

Justice Musa Sekaana the head of the Civil Division of the High Court has allowed the registration of the judgment issued in Kenya against a Ugandan shipping company.

According to court documents, Mary Nyambura Mukuha and Grace Wanjiru Nyambura are suing as legal representatives of the Estate of Paul Nyutu, Stephen Mwaura and John Mukuha Wanjiru who died because of the negligence of a registered agent of Three Way Shipping Group of Companies Limited.

In her affidavit, Nyambura told Court that they are seeking a court directive to register the judgment issued by Naivasha Chief Magistrate Court so as to execute the orders against Three Ways Shipping Company which is incorporated in Uganda and has offices along Jinja road opposite Jinja road police station.

She explained to the court that their three people were riding a Motorcycle Reg No. KMCA 016P on 27^th October 2013 when they were knocked and killed by a trailer with Ugandan Registration No. plates UAL 839N.

She added that they instituted a case against the shipping company and fully served them with court documents but they intentionally refused to file a defense and the matter proceeded by way of formal proof.

The judgment was delivered on 4^th march 2020.

She told court that they executed their judgment and on 30^th April, 2023, court issued a court order allowing them to recover a decretal sum, costs and interest from the date of judgment totaling to Kshs 8,607,615/= (UGX 238,204,903.59).

In his ruling, Justice Ssekaana noted that his court took judicial notice of the fact that Kenya is a Commonwealth country, and it being a protectorate of Britain which has a reciprocal arrangement with Uganda, the matter before him emanates from Naivasha Chief Magistrates Court which is located in Kenya and was properly seized with jurisdiction to hear and determine a matter.

He explained that it is not the duty of his court to entertain an application for registration of a foreign judgment to sit on appeal over the decision of the original court that delivered the judgment sought to be registered.

He further wondered why the shipping company does not exercise its right of appeal under the laws of the foreign country challenging the decision passed against it noting that his court only needs to ensure that the applicant complies with the requirements of the courts on registration of foreign judgment which was done.

The applicants through their lawyers led by Lastone Gulume have started the process of recovering their money including auctioning off the properties owned by the financially troubled shipping companies.

The Company’s top founding directors Oscar Baitwa and Geoffrey Bahamaiso are also facing criminal charges before the Anti-Corruption Division of the High Court on the allegation of stealing Shs7bn from MTN Uganda.

By Grapevine reporter

Kampala city traders associations members under their umbrella body the Federation of Uganda Traders Association (FUTA) have tasked their controversial chairperson John Kabanda to give them accountability for the funds they contributed to run federation activities.

Isaac Kauma, a member of Kampala Traders Association, exclusively revealed to theGrapevine that Kabanda turned furious and started spreading malicious propaganda against a section of traders who are demanding for accountability of their money which they have been contributing since last year.

Kauma narrated that when President Museveni confirmed that he was going meet them again on 18^th July, 2024 at Kololo Airstrip ground to further discuss their grievances over the controversial Electronic Fiscal Receipting and Invoicing Solution (EFRIS), Kabanda and other FUTA leaders approached traders and asked them to contribute money which they were going to use to transport traders from all corners of the country to fill the entire venue to show the president that they have the numbers and the capacity.

He added that Kabanda confirmed to them that they need numbers to out compete members of the Kampala City Traders Association (KACITA) who wanted to show the president that they are the ones controlling traders after accusing KACITA leadership of betraying them and by being in bed with Uganda Revenue Authority (URA) which was imposing EFRIS on them.

Kauma asserted that more than 1000 traders around Kampala city contributed between Shs10,000-Shs20,000 but the meeting didn’t take place because the venue was under renovation and the president promised to meet them on another date.

He said that State House made the said announcement after Kabanda and other traders’ leaders met Museveni at State House Entebbe and they were told that Kabanda and his deputy chairperson Godfrey Katongole asked the president for a private meeting with him which the president accepted.

Kauma added that they later learnt that Kabanda and Katongole asked the President to give them Shs3bn to mobilize traders to accept EFRIS a proposal the president declined to accept.

The President told them that he doesn’t the money they were asking for but promised to put Shs300m in their SACCO.

“From that day, Kabanda’s behavior is questionable, he always doesn’t want to be asked questions on why the president is not meeting us and turns furious when asked to give us accountability for the money we contributed for the function which didn’t take place,” Kauma said.

He revealed that the accountability issue has weakened the federation thus causing a sharp fight between Kabanda and Katongole.

Other traders allege that Kabanda has fired Katongole from being his vice chairperson and removed him from their WhatsApp group and replaced him with Moses Lwegaba the chairperson of Katukazane Shoe Dealers Association.

Sources claim that Katongole supporters are now threatening to take action against Kabanda for firing the man who has done everything in the struggle to fight for traders and replaced him with a newcomer.

Insiders are now alleging that the two leaders are fighting over a bribe they received during the EFRIS strike when traders closed their shops.

There is another allegation that Katongole was given money to go to the Eastern part of the country and mobilize traders to join the strike but he refused to go and decided to hide in Kampala.

When he was put under pressure to provide evidence that he traveled upcountry and had none, he was shown the exit.

When contacted, Kabanda confirmed the infighting, explaining that it is aimed at weakening his FUTA leadership and the trust that the traders have placed in them.

He revealed that even though he is receiving threatening messages, his resolve is still strong and he is ready to fight for all traders.

He denied allegations of mismanaging traders’ money.

By Timothy Nyanzi