Kanyeihamba, German investor in land row
May 05, 2006
SPOTLIGHT<br><br>Supreme Court judge Prof. George Kanyeihamba is locked up in a wrangle with a German investor over land the judge leased to him for horticultural farming.
By Felix Osike
SPOTLIGHT
Supreme Court judge Prof. George Kanyeihamba is locked up in a wrangle with a German investor over land the judge leased to him for horticultural farming.
The investor, Dr. Clemens Fehr, was evicted from Kanyeihamba’s land on Block 397, Plots 169, 177, 178 and 225 located near Lutembe Beach Resort on Entebbe Road on March 20, for reportedly violating the terms of the agreement.
“My demand is that I be fairly treated. If we cannot get back our plantation, then we want to be fairly compensated for the direct investment, management put in and lost profits,†Fehr said.
But Kanyeihamba yesterday said the investor grabbed his land by violating the agreement they signed.
“Basically he seized my land without permission,†he said.
He said the investor was instead using the land for general agricultural purposes other than horticulture.
According to an agreement of August 1, 2001, Kanyeihamba leased 20 acres of land to Fehr for 25 years.
Fehr agreed to pay a yearly rent of US$100 (sh181,500) per acre or 10 percent of the gross profits realised from the sale of the produce harvested from the land. The rent was to be reviewed every five years.
The agreement also explicitly states that the land was leased for development of a horticultural farm only.
“In the end we saw him growing trees like Mahogany, Musizi and other things we did not know. We also discovered that he was planting vanilla. We gave him three months notice to quit for breach of contract.
“When my lawyers realised he was not coming out on the matter, they took steps and evicted him,†Kanyeihamba said.
But Fehr said Kanyeihamba had no right to evict him without writing to him as per the agreement which had also provided for arbitration in case of a dispute.
In a statement to the Police, he said, “There was no written document given to us to justify this.â€
He said Kanyeihamba also frustrated his bid to register the lease.
Kanyeihamba said immediately Fehr was evicted, somebody went to the farm with poisoned meat and killed the dog which was guarding the farm. The judge now says he fears for his life.
“I really fear for my life and the Police is investigating because the matter is becoming serious.â€
Fehr said at the time of the eviction he had 14,000 vanilla plants on four hectares of land that should have produced 1,000kgs of green beans this season.
He also had one-and-a-half hectares of vegetable spices and herbs for the local market. He said his total investment in the farm was estimated at sh250m.
Fehr, who has also petitioned President Yoweri Museveni, added, “The reputation of Uganda as an investment destination is seriously at stake if the case is not handled fairly.†He said he planted only a few trees for shade.
Kanyeihamba said Fehr paid rent initially but later a dispute arose over the boundaries.
“When I was abroad on duty, he simply took my land and left the one I had given him and enclosed it with barbed wire and put a gate. In my absence he put a caveat on my land,†said the judge.
He said when Fehr was told to negotiate with him over the matter, he declined. Kanyeihamba said at one time he had to flee for dear life when Fehr attacked him for entering the farm without permission.
Kanyeihamba said on evaluation by agricultural experts, it was found out that Fehr had been growing vanilla since 2003 and could have earned over sh2b. “He has never given me a penny. He is the one who owes me money, about sh150m from what he has been selling,†Kanyeihamba said.
The New Vision has seen acknowledgement receipts from Kanyeihamba showing he received US$8,000 as payment for rent from August 2001 to June 2005.
Another Stanbic Bank cheque number 029548 for US$2,000 of July 20, 2005 was issued to Kanyeihamba’s lawyers, J.B Byamugisha Advocates, but reportedly became stale after it was not presented within the mandatory six months.
“The re-entry is illegal since it is expressly stipulated in the lease agreement that the re-entry shall be on condition that I fail to pay the annual rent and after being legally demanded, which was not,†Fehr said in an affidavit filed in the High Court.
But the judge said, “I have had a headache with him. He has refused to see me and he will never step on that land.â€
On whether he would compensate Fehr, he replied, “This man has no claim whatsoever. I am negotiating with the vanilla growers to see whether they can manage it so that I can recoup the losses I have had over the years.â€
He said the court dismissed Fehr’s application for an injunction because it was found the two parties had differed on the boundaries of the lease.
SPOTLIGHT
Supreme Court judge Prof. George Kanyeihamba is locked up in a wrangle with a German investor over land the judge leased to him for horticultural farming.
The investor, Dr. Clemens Fehr, was evicted from Kanyeihamba’s land on Block 397, Plots 169, 177, 178 and 225 located near Lutembe Beach Resort on Entebbe Road on March 20, for reportedly violating the terms of the agreement.
“My demand is that I be fairly treated. If we cannot get back our plantation, then we want to be fairly compensated for the direct investment, management put in and lost profits,†Fehr said.
But Kanyeihamba yesterday said the investor grabbed his land by violating the agreement they signed.
“Basically he seized my land without permission,†he said.
He said the investor was instead using the land for general agricultural purposes other than horticulture.
According to an agreement of August 1, 2001, Kanyeihamba leased 20 acres of land to Fehr for 25 years.
Fehr agreed to pay a yearly rent of US$100 (sh181,500) per acre or 10 percent of the gross profits realised from the sale of the produce harvested from the land. The rent was to be reviewed every five years.
The agreement also explicitly states that the land was leased for development of a horticultural farm only.
“In the end we saw him growing trees like Mahogany, Musizi and other things we did not know. We also discovered that he was planting vanilla. We gave him three months notice to quit for breach of contract.
“When my lawyers realised he was not coming out on the matter, they took steps and evicted him,†Kanyeihamba said.
But Fehr said Kanyeihamba had no right to evict him without writing to him as per the agreement which had also provided for arbitration in case of a dispute.
In a statement to the Police, he said, “There was no written document given to us to justify this.â€
He said Kanyeihamba also frustrated his bid to register the lease.
Kanyeihamba said immediately Fehr was evicted, somebody went to the farm with poisoned meat and killed the dog which was guarding the farm. The judge now says he fears for his life.
“I really fear for my life and the Police is investigating because the matter is becoming serious.â€
Fehr said at the time of the eviction he had 14,000 vanilla plants on four hectares of land that should have produced 1,000kgs of green beans this season.
He also had one-and-a-half hectares of vegetable spices and herbs for the local market. He said his total investment in the farm was estimated at sh250m.
Fehr, who has also petitioned President Yoweri Museveni, added, “The reputation of Uganda as an investment destination is seriously at stake if the case is not handled fairly.†He said he planted only a few trees for shade.
Kanyeihamba said Fehr paid rent initially but later a dispute arose over the boundaries.
“When I was abroad on duty, he simply took my land and left the one I had given him and enclosed it with barbed wire and put a gate. In my absence he put a caveat on my land,†said the judge.
He said when Fehr was told to negotiate with him over the matter, he declined. Kanyeihamba said at one time he had to flee for dear life when Fehr attacked him for entering the farm without permission.
Kanyeihamba said on evaluation by agricultural experts, it was found out that Fehr had been growing vanilla since 2003 and could have earned over sh2b. “He has never given me a penny. He is the one who owes me money, about sh150m from what he has been selling,†Kanyeihamba said.
The New Vision has seen acknowledgement receipts from Kanyeihamba showing he received US$8,000 as payment for rent from August 2001 to June 2005.
Another Stanbic Bank cheque number 029548 for US$2,000 of July 20, 2005 was issued to Kanyeihamba’s lawyers, J.B Byamugisha Advocates, but reportedly became stale after it was not presented within the mandatory six months.
“The re-entry is illegal since it is expressly stipulated in the lease agreement that the re-entry shall be on condition that I fail to pay the annual rent and after being legally demanded, which was not,†Fehr said in an affidavit filed in the High Court.
But the judge said, “I have had a headache with him. He has refused to see me and he will never step on that land.â€
On whether he would compensate Fehr, he replied, “This man has no claim whatsoever. I am negotiating with the vanilla growers to see whether they can manage it so that I can recoup the losses I have had over the years.â€
He said the court dismissed Fehr’s application for an injunction because it was found the two parties had differed on the boundaries of the lease.