COURT | BITATURE | VANTAGE 

KAMPALA - City businessman Patrick Bitature can now have a sigh of relief after the Court of Appeal blocked the sale of his multi-billion shilling properties valued at over a sh36.6b loan, owed to Vantage Mezzanine Fund II Partnership, a South African entity. 

The six properties include Elizabeth Apartments at Kololo gardens, Protea Hotel-Naguru (Sky’s Hotel), Moyo Close Apartments, Kololo gardens, and plots of land in Naguru in Kampala. 

The properties of Simba Properties Investment Co. Limited and Simba Telecom Limited had been advertised in a local newspaper for sale by lawyer Robert Kirunda and court bailiff Festus Kateregga, Vantage’s agents. 

Commercial Court judge Stephen Mubiru okayed the auctioning of the properties after dismissing Bitature’s application, seeking to stop the sale on grounds that the entity (Vantage) was non-existent, hence the appeal.

However, Court of Appeal judge, Christopher Gashirabake on Friday (July 1) issued an order restraining Vantage’s agents from selling the properties.

The judge noted that there was a threat of sale of the property before the determination of an application in which Bitature seeks a protective order before him. 

“Any further form of threat of sale or dealing in the advertised property, is hereby stayed until the determination of the application of interim order,” he directed. 

The judge noted that the ruling was not meant to stop or interfere with the ongoing negotiation, which has to continue but to protect the properties subject to an international arbitration until the matter was concluded.

Justice Gashirabake said he was alive to the provisions of Section 9 of the Arbitration and Conciliation Act and that his court had no jurisdiction to handle the matter. 

The ruling was delivered in the presence of lawyers Fred Muwema, Friday Roberts Kagoro, representing Bitature’s companies and lawyers Simon Tendo Kabenge, Robert Kirunda and Diana Kasabiti for Vantage.

Bitature welcomed the ruling, reiterating his confidence in both the Uganda justice system and international arbitration processes, confirming his commitment to a speedy resolution of the dispute. 

The court heard that Bitature and Vantage were undergoing an arbitration process in London over a $10m (sh36.6b) loan, which the South Africa-based firm extended to Bitature in 2014.

About parties 

A real estate mogul, Bitature is the founder and chairperson of Simba Group. 

He is also the board chairperson of UMEME Uganda Limited and the second vice-chancellor of Uganda Technology and Management University (UTAMU). 

He was in 2011 named Australia’s first Honorary Consul to Uganda.

Vantage Mezzanine Fund II Partnership’s directors are Derek Alexander and Siyanda Khumalo, while Warren Van Der Merwe is the managing partner. 

The company’s local representatives are Diana Kasabiiti and Moses Muziiki.

Arbitration 

In his ruling dated June 16, last year, Justice Boniface Wamala vacated all court orders that had been issued in the matter and directed the parties to go for arbitration. 

“Having found that the impugned arbitration agreement exists, is valid, operative and capable of being performed, and that there is an arbitrable dispute between the parties herein, it is ordered that this matter be, and is accordingly, referred to arbitration in accordance with Section 5 of the Arbitration and Conciliation Act,” the judge earlier ruled. 

However, Bitature on his part argued that he was equally shocked when Vantage filed an application seeking to initiate criminal proceedings against him, yet the matter was still under arbitration as directed by court.

About eight years after Vantage gave Bitature the $10m loan, the company is now reportedly demanding over $38m (sh139b), which Bitature said amounts to a 40% interest on the initial loan, which according to him was abnormal. 

“Like every other business, we were also affected by the COVID-19 pandemic and all our businesses were closed. This is why we welcomed the arbitration to find a middle ground,” he stated.