Credible reports from the ministry of finance, plannning and economic development – Uganda show that the government has paid business mogul, Patrick Bitature millions and billions of money to bail him from unpaid debts with a South African money lender, Vintage Capital.
This follow a recent ruling by the London arbitration court, International Chamber of Commerce Court of Arbitration which ordered Bitature, his wife Carol Nzaro and their companies to pay the lender $65.7 millions.
According to court documents, Patrick Bitature has been directed to personally pay $25.4 million as a result of a breach of contract. This amount represents both the breach itself and the compound interest at a rate of 13 percent per annum, calculated quarterly from February 16 to the date of the award.
Additionally, the court has mandated the transfer of 30,000 shares from Bitature and his wife, Carol Nzaro Bitature, to Vantage Capital. His companies were also ordered to pay Vantage Capital a sum of $35.44 million.
This payment includes a component of $115,591 for pre-arbitration legal fees, disbursements, and related costs. Moreover, a payment of $241,727, attributed to the stamp duty paid for the transfer of shares, is also included. Compound interest, mirroring the earlier calculation, applies to these amounts as well.
The London court ordered Simba Telecom, Linda Properties, and Elgon Hotel to pay Vantage Capital $4 million for breaching a contract related to the KCB Facility and securities without the consent of the South African company.
Insiders at the ministry said the minister of finance, Hon. Matia Kasaija has already entered a Memorandum of Understanding with the tycoon which will see government taking over his Electromax Power Plant in Torooro at a still concealed huge amounts of money.
Another source from the Auditor General office said the AG. John F S Muwanga did the auditing before the signing of an MoU.
Signing of the MoU came after Bitatura proposed to the government to take over his Electromax Power Plant in a deal to bail him out. The proposal was according to anonymous sources approved by cabinet on Sunday but, the amount of money which Bitature will pocked in the transaction deal remains concealed from the media.
Background
The dispute traces its origins to a loan provided by Vantage Capital to Bitature in 2014. Initially a $10-million investment in Ugandan real estate, the debt grew exponentially due to accrued interest, charges, and penalties, now standing at over $60 million.
The loan, which was intended to finance the development of the Moyo Close Apartments and Skyz Hotel in Naguru, has led to sour relations between the once-promising partners. Bitature’s Simba Group, an East African conglomerate, engaged in a legal defense alongside the businessman himself, challenging the authority of Vantage Capital to lend in Uganda.
