BY URN
Aya Investment Limited, which owns Pearl of Africa Hotel Kampala has again lost a bid to stay the execution of an order to auction the hotel for non-payment of loans amounting to over US$ 300 million.
Three Court of Appeal judges; Fredrick Egonda-Ntende, Monica Mugenyi, and Oscar Kihika ruled that a reference filed by Aya against his financiers Industrial Development Corporation Of South Africa Limited to stay the orders of the Court of Appeal judge Christopher Gashirabake allowing the execution orders became untanable when Aya withdrew the substantive appeal on, which the stay of execution application was based.
“We therefore find that following the withdrawal of Miscellaneous Application No. 271 of 2023, the application upon which the single judge decision referred to this Court was premised, this Reference is misconceived and improperly before this Court. We would therefore dismiss this Reference with costs to the Respondent,” the judges ruled.
According to court records, Aya Investments Limited which belongs to businessman Muhammad Hamid between 2007 and 2017, and Industrial Development Corporation of South Africa executed various Financial Credit Agreements as well as Security Agreements, to finance the construction of the Pearl of Africa hotel. Following a breakdown in the business relationship between the parties and the supposed default by Aya on its financial obligations, his financiers instituted foreclosure proceedings under the Ugandan legal regime as provided under the Security Agreements.
Aya objected to these proceedings instead opting for arbitration as provided in the loan agreements they had signed. He also obtained restraining orders against the foreclosure proceedings until the arbitration process plays out in South Africa. He also went ahead and instituted Civil suit No. 937 of 2017 that was grounded in contempt of court and breach of contract; to which his financiers responded by filing an application that sought to refer all the matters in the said suit to arbitration.
The arbitration process ended in the favour of the financiers, who also sought orders from the High Court to execute them. This prompted Aya to file an application challenging the high court decision to allow the execution of the arbitral orders that included the closure of the hotel. He lost the application, which was heard by a single judge of the Court of Appeal; Gasharibake hence prompting him to file a reference seeking the matter to be heard by three judges of the court.
When the matter came up for hearing in court, the lawyers representing the Industrial Development Corporation raised a preliminary point of law that the application for leave to appeal upon which the stay of execution was premised had been withdrawn, there was no legal basis for the reference. It is this objection that the court upheld.
If not appealed in the Supreme Court, this ruling means that Pearl of Africa Hotel that is located on Nakasero Hill on the land that previously belonged to the Uganda Broadcasting Corporation, the national broadcaster will indeed go up for action in order to clear the debts that its owner has accrued over the years. Hamid has already called for help from President Yoweri Museveni against what he called mafiosi aimed at dispossessing him. Museveni has not yet weighed in at least publicly on the matter.
Previously, he has bailed out businessmen stressed by loans the latest being Patrick Bitature, the owner of Protea Hotel who was also on the verge of collapse after another financier from South Africa demanded more than US$ 30 million in principal and in interest accruing from a loan that had been granted to him and failed to honor.
About the author
London: A Black Pride Haven
BY JAMES KABENGWA. LONDON. Queen Elizabeth Olympic Park was Sunday filled with the vibrant energy of UK Black Pride- celebrating its 20th anniversary. It brought together LGBTQ+ people of African, Asian, Caribbean, Latin American, and Middle Eastern descent joined by their other global enthusiasts and members. Among the thousands of attendees were many Ugandans who have found refuge and peace in the UK. For these individuals, the event was more than a celebration. It was a powerful act of defiance. It stood in stark contrast to the realities of their home country, Uganda, where a draconian Anti-Homosexuality Act was passed in 2023. This law includes severe penalties, with "aggravated homosexuality" punishable by death and other consensual same-sex acts by life imprisonment. The legislation criminalizes virtually every aspect of LGBTQ+ life, including advocacy and support for the community. Uganda is one […]
Uganda and Nigeria Forge Anti-Graft Alliance to Boost Trade
Nigeria’s High Commissioner to Uganda, Ambassador John Shama Shaga, has met with the head of the State House Anti-Corruption Unit, Brig Gen Henry Isoke, to discuss a joint effort to combat fraud. The collaboration is aimed at creating a safer investment environment and boosting bilateral trade between the two nations, particularly under the African Continental Free Trade Area.
Three Charged in Cattle Compensation Scandal
KAMPALA. Three suspects, including a politician and a UPDF soldier, have been charged with the theft of over UGX 1.5 billion from a government cattle compensation program in Uganda's Otuke District. The State House Anti-Corruption Unit (SHACU) announced the arraignment of the trio before the Otuke Magistrate’s Court following a joint investigation with the CID and the Office of the Director of Public Prosecutions (ODPP). The accused are identified as Akasa Jimmy Mokili, a politician; Okengo Jaspher, an LCIII Chairperson; and Sgt. Amoni Benz of the UPDF. According to reports from the Daily Secrets, this is part of a larger criminal scheme targeting vulnerable, often elderly, beneficiaries who lost livestock during the LRA insurgency and Karamoja cattle raids. The conspirators allegedly manipulated the bank account registration process, gaining access to victims' funds and either stealing the money outright or giving […]
Uganda Election Turmoil Looms: Warnings Abound
By RICHARD KIZZA LUGOBWA LONDON - As Uganda approaches the 2026 general elections, concerns over the integrity of the electoral process are intensifying following widespread malpractice during the ruling National Resistance Movement (NRM) party primaries last month. The primaries, held to select party flagbearers for parliamentary and local government positions, were marred by irregularities triggering a wave of concern across the political and civic landscape. Critics, civil society organizations, opposition politicians and observers fear that the widespread irregularities are a warning sign of deeper systemic electoral failures that undermine the credibility of next year's national polls likely to plunge the country into political turmoil. Multiple reports from civil society organizations, independent monitors, and local media have documented instances of ballot stuffing, partisan behavior by state institutions, voter intimidation, bribery, and violence during the NRM primaries. In numerous districts, party officials […]
Vitol, UNOC now accused of failure to protect petroleum products from adulteration, siphoning
In the wake of accusations of supply of adulterated petroleum products, now Uganda National Oil Company and VITOL Energy Limited are being accused of failure to protect fuel trucks from siphoning. Recent videos and images circulating on various social media platforms show individuals siphoning fuel from moving trucks within the city, an act which analysts say could spark deadly disasters. This newspaper understands that Uganda has in the past witnessed deadly accidents where people who tried to siphon fuel were killed when the fuel caught fire. Hotspots for fuel siphoning include Busia, Jinja, and Banda as well as Northern Bypass and Namuwongo area. Kampala police spokesperson Patrick Onyango told this newspaper they were investigating cases of fuel siphoning in the said areas. He warned those involved of severe punishment once arrested. VITOL-UNOC deal Vitol Energy partnered with the Uganda National […]
Why King Caesar Mulenga camp should go slow on shs1.8b entrepreneurship camp
KAMPALA: The ongoing National Resistance Movement (NRM) Entrepreneurs League elections have been marred by controversy, particularly surrounding claims made by the Ceasor Mulenga camp. According to sources, Mulenga's team has been spreading false information about injecting shs1.8b into the Entrepreneurs League SACCO. The Truth Behind the Claims A thorough investigation has revealed that these claims are entirely baseless. There is no evidence to suggest that Mulenga or his team has deposited any funds, let alone shs1.8 billion, into the SACCO. This lack of financial commitment raises serious questions about the credibility of Mulenga's campaign promises as he vies for the position of Chairman of the NRM Entrepreneurs League. Furthermore, when the Buganda and Kampala NRM SACCOs requested that Mulenga deposits funds into their accounts, he avoided doing so. According to Al Hajj Karim Karamagi, the contestant for CEC's Vice Chairman […]
Related
Vitol, UNOC now accused of failure to protect petroleum products from adulteration, siphoning
In the wake of accusations of supply of adulterated petroleum products, now Uganda National Oil Company and VITOL Energy Limited are being accused of failure to protect fuel trucks from siphoning. Recent videos and images circulating on various social media platforms show individuals siphoning fuel from moving trucks within the city, an act which analysts say could spark deadly disasters. This newspaper understands that Uganda has in the past witnessed deadly accidents where people who tried to siphon fuel were killed when the fuel caught fire. Hotspots for fuel siphoning include Busia, Jinja, and Banda as well as Northern Bypass and Namuwongo area. Kampala police spokesperson Patrick Onyango told this newspaper they were investigating cases of fuel siphoning in the said areas. He warned those involved of severe punishment once arrested. VITOL-UNOC deal Vitol Energy partnered with the Uganda National […]
Why King Caesar Mulenga camp should go slow on shs1.8b entrepreneurship camp
KAMPALA: The ongoing National Resistance Movement (NRM) Entrepreneurs League elections have been marred by controversy, particularly surrounding claims made by the Ceasor Mulenga camp. According to sources, Mulenga's team has been spreading false information about injecting shs1.8b into the Entrepreneurs League SACCO. The Truth Behind the Claims A thorough investigation has revealed that these claims are entirely baseless. There is no evidence to suggest that Mulenga or his team has deposited any funds, let alone shs1.8 billion, into the SACCO. This lack of financial commitment raises serious questions about the credibility of Mulenga's campaign promises as he vies for the position of Chairman of the NRM Entrepreneurs League. Furthermore, when the Buganda and Kampala NRM SACCOs requested that Mulenga deposits funds into their accounts, he avoided doing so. According to Al Hajj Karim Karamagi, the contestant for CEC's Vice Chairman […]
Lawyer jailed in Justice Kanyeihamba shs200m heist
Kampala, Uganda – The State House Anti Corruption Unit (SH-ACU), in a joint operation with the Criminal Investigations Directorate (CID1_UG) and the Office of the Director of Public Prosecutions (ODPPUGANDA), has arraigned Obam Andrew, an advocate, before the Anti-Corruption Court on charges of money laundering. Mr. Obam is accused of conspiring with Kaliisa David, a driver for Professor George Kanyeihamba, to fraudulently steal and transfer over USD 56,500 between October 2022 and September 2024. The funds were allegedly siphoned using stolen cheques belonging to Prof. Kanyeihamba. $56,500 = 202,813,530 UGX Investigators state that the stolen money was transferred to the account of Loi Advocates, where Mr. Obam is the sole signatory. He has been remanded into custody until July 14, 2025, when he is expected to enter his plea. Uganda's legal profession, like any other, has faced its share of […]
JUST IN: Muhoozi vows silence over Germany issues
KAMPALA: The Chief of Defence Forces (CDF) of the Uganda People's Defence Forces (UPDF), Gen Muhoozi Kainerugaba, has vowed to keep mute on issues concerning Germany. Muhoozi who has been so vocal and accusing the Germany Ambassador to Uganda, Mathias Schauer, of engaging subversive activities. Muhoozi posted on X Monday, "Out of respect for my great uncle, Afande Saleh, I shall not mention Germany or bazungu again. I want to apologize to Afande Saleh if I disobeyed him in anyway. Nisamehe Afande." A day earlier, the UPDF had published a statement, ending military cooperation with Germany. On X recently, the general threatened to behead opposition leader Robert Kyagulanyi, popularly known as Bobi Wine. Gen Kainerugaba also boasted about torturing Wine's bodyguard after detaining him. Rights groups have long accused the Ugandan government of targeting the opposition, especially in the run-up […]
Mrs Museveni hails women in construction industry
KAMPALA: The First Lady and Minister of Education and Sports, Ms Janet Kataha Museveni, has applauded the inclusion of women in the country’s construction industry. The First Lady commended companies such as SMS Construction, Steal & tube for their outstanding service and commitment to gender inclusion. Mrs Museveni who was inaugurating the Women in Construction Symposium 2025 at the Kololo Independence Grounds on Friday Mrs. Museveni commended women for delivering quality of work. The symposium was organised by the Uganda National Association of Builders, Suppliers, and Engineering Contractors (UNABSEC) together with the Pan-African Chamber of Commerce (South Africa). “We believe in quality service delivery as a government, and SMS Construction, along with Steel & Tube, Roofings, Uganda Baati, Simba Cement, and others, have demonstrated that commitment under the guidance of UNABSEC,” the First Lady said. “I encourage you all to […]
State Censorship, Commercialization Crush Uganda’s Radio Dramas
By Richard Kizza Lugobwa LONDON. Radio drama, a potent blend of entertainment, education, and cultural preservation, has historically shaped societies worldwide. In Uganda, its roots trace to the colonial era, when British authorities introduced radio broadcasts in the early 20th century. These early audio plays were not merely entertainment but tools of colonial control, designed to suppress local traditions, propagate foreign values, and mobilize communities for state-driven projects like commercial farming and bulungi bwansi (communal labor). Post-independence in 1962, radio dramas retained their significance, evolving into a medium for nation-building under Uganda’s fledgling government. Despite the advent of television, radio’s affordability and reach ensured its dominance, particularly through the state-owned Radio Uganda (now the Uganda Broadcasting Corporation- UBC Radio), which monopolized airwaves until the 1990s. For over three decades, Radio Uganda’s dramas, broadcast in languages like Luganda, Runyakitara, and Luo, […]
Be the first to leave a comment