Ugandan investor wins milestone ruling in S. Africa

By Patrick Jaramogi

A South African, Gauteng High Court has thrown out a case filed by Hydraform International (PTY) Limited against a Ugandan expatriate working there.

The court presided over by High Court Judge Mathibedi A J ruled that businessman Harrison Busingye who owns shares in Hydraform  a block making machines  company had a right to sell out his shares to willing buyers. Hydraform management had obtained an X- party order to attach all his shares.

Busingye one of the former directors has 5.64 percent shares circa $1.185m (shs3bn) of the total Hydraform Holdings.

In a 30 page judgment, Mathibedi pointed out that the application and granting of the order for attachment was erroneously sought and erroneously granted in Busingye’s absence.

Busingye appealed against the respondents’ decision to drag him to court after they sought to dismiss him as one of the directors of the firm and deny him his shares in the company.

 “That’s because the applicant is an incola of this court, his property should not have be attached. Section 28 (1) of the Supreme Court Act 59 of 1959 (The Act) prohibits the “attachment of person or property to found jurisdiction (being) ordered by a court of any division against a person who is resident in the Republic,” said the judge.

According to the case number 09675/2012 the judge noted that “…..it is an essential principle of South African Law that a person. That the court should not make an order that may prejudice the rights of parties before it.”

The court ruled that it was wrong for the respondent (Hydraform) to cancel the expatriates’ work permit on flimsy grounds. The judge noted that Busingye still had an active bank account, was a resident with a known residential address, had a child studying in South Africa and has a tax identification number.

The court ordered Hydraform to pay the costs of the suit and rescinded an earlier judgment made by his Lordship Justice Nicolls on March 20 2012.

“This case was an extension of the OPM/ Bigirimana saga, for which I dragged Bigirimana to court over northern Ugandan Hydraform projects,” said Busingye.

When contacted, the Hydraform Managing director, Robert Platnner said they respect the court’s ruling. “We shall move on. In life such things happen. This company is now undergoing new changes, but we shall move on,” he told New Vision on phone from South Africa.