MIDROC Has Two Days To Pay Up For Sheraton

MIDROC has only two days left to pay the US$18m for the Sheraton Kampala Hotel lest it will lose the deal and forfeit the US$1m bind bond, writes Vision Reporter. The three-week grace period granted to the Saudi-owned company ends on Wednesday. Reports said the Government has indicated that it will not extend the deadline again. "They asked for the deadline extension on grounds that there was a mix-up in instructions given to their bankers regarding the US$18m payment," said a source. "During its sitting on February 5, DRIC (Divestiture and Reform Implementation Committee) considered Midroc's request and agreed to give them up to February 28 within which to pay," he added. Midroc, Muhammad Investment Development Research Organisation Company, belongs to a Saudi tycoon, Sheikh Muhammad Al-Amoudi. He also owns the posh Addis and Djibouti Sheraton Hotels. In 1999, Al-Amoudi was declared the best investor in Sweden. But yesterday, it was not possible to establish when Mr. Vijay Vijeyakumaar, a Midroc representative, would bring the US $18m cheque. Manzi Tumubweine, state minister for privatisation and Michael Opagi, the Privatisation Unit boss, were unavailable for comment. Ends