Biriggwa In $72,000 Case

KAMPALA mayoral candidate Wasswa Biriggwa is in trouble after a US$72,000 (sh120m) debt largely guaranteed by banker Arthur Van Brink has gone sour, reports John Eremu. Biriggwa, through his firm, Natures Green Limited, in June 1997 leased Blacklines House from Katatumba Properties at a monthly rent of $20,000 (sh34.2m). But the properties manager, Grace Rwabwogo, said Biriggwa in May 1998 got rental $39,219 (sh67m) advances from the most trusted tenants and took off for the mayoral campaigns before remitting it. “Despite several reminders, he failed to comply until we took court action,” Rwabwogo said. Mr. Boney Katatumba, the chairman Katatumba Properties, said when he sued Biriggwa to recover the money Van Brink, the former chief executive of the defunct First International Bank of Grenada (FIBG), approached him in April this year and guaranteed to pay $57,000 (sh97.4m) if the court process was dropped. Biriggwa also promised to clear the remaining $15,000 (sh25.6m) on the same condition. “Without acknowledging any obligation on the part of himself or his wife to Katatumba Properties Ltd, Mr. Van Brink pledges that out of his future contract earnings related to G77 World Trade and Development Bank (presently in organisation) to pay US $57,000 to Katatumba Properties Ltd, to be paid at the rate of 10% of earnings as they are received,” the April 26, 2001 agreement said. However, Katatumba, the G77 former president, said yesterday he had instructed his lawyers, Sempasa and Company Advocates, to resume the case process. “No comment now, but I will call you back,” said Biriggwa who has twice lost the Kampala mayoral race and is trying his luck for the third time. Katatumba said Van Brink’s one-year G77 contract has not been renewed. Van Brink, formerly Gilbert Allen Ziegler, came to Uganda in 1999 with a dubious reputation with his offshore banking schemes. As a G77 Bank consultant, he instead proposed that the G77 member countries buy the bank, whose net value then was estimated at US $2 (sh1,420). The bank collapsed in August last year. Biriggwa was supposed to pay a monthly rent of $20,000 net of all deductions. He was also supposed to maintain the building, pay for water, electricity, ground rates and other charges imposed by the Kampala City Council in addition to insuring the building on Plot 2 Colville Street at the value of not less than $4m (sh6.8b). Although the lease was to run for 10 years, it was terminated a year later after Biriggwa defaulted on payments to the tune of $71,714. When the lease was terminated in May 1998, Natures Green was already in rent arrears of $36,244 (sh62m) in addition to the $39,000 in rent advances. Electricity bills had also accumulated. Katatumba is also demanding $11,333 (sh19.3m) as VAT for January to April 1998, Yogi Biriggwa, the general manager of Natures Green, acknowledged. Ends