Aya, lawyer clash over sh5b legal fee
THE Aya Investment Group, a firm constructing the multi-million dollar hotel in Nakasero, has clashed with their former lawyer over payment of US$2.5m (about sh5b) in legal fees.
By Francis Kagolo
THE Aya Investment Group, a firm constructing the multi-million dollar hotel in Nakasero, has clashed with their former lawyer over payment of US$2.5m (about sh5b) in legal fees.
Lawyer Muzamiru Kibedi of Kibedi & Co. Advocates, whom the Aya officials accuse of fraud, last year helped the investors secure a US$41.5m (about sh70.5trillion) loan. The money was got from the Industrial Development Corporation, a South African finance company, to complete the Hilton Hotel.
The loan, for which Kibedi’s law firm drew the documentation, was granted in October 2007, according to documents seen by The New Vision.
Despite receiving the first installment of the loan in November last year, Kibedi says, Aya is yet to pay his legal fees.
According to the Advocates Remuneration Rules, Kibedi argues, lawyers are entitled to 5% of the loan secured by their clients as legal fees.
Roy Byaruhanga, the High Court deputy registrar, on Thursday issued a certificate of taxation, requiring the Aya Group to pay Kibedi US$2.5m.
“Since December 2007, I have been reminding them to pay me. Instead of honouring their obligation, they (AYA) want to arm-twist me,†Kibedi, who was responding to Aya’s accusations, told The New Vision on Saturday.
“They had offered me US$3,000 (about sh5.1m) but I refused and instead sued them. Then they (AYA) denied that I never rendered services for their loan acquisition. This was false,†Kibedi said, while viewing copies of the agreement between Aya and the South African finance company to prove his case.
Aya claims it cleared the lawyer’s fees.
The Group chairman, Mohammed Hamid, accused Kibedi of attempting to defraud the company.
He was addressing a press conference in his office in Nakasero at 8:00pm on Friday.
He added jokingly: “US$2.5m is too much money for Kibedi. He cannot claim it. He has never even seen it.â€
The criminal investigations department spokesperson, Fred Enanga yesterday said Kibedi was interrogated on Friday and inquiries were still going on.
Aya legal officer Ahmad Mayanja accused Kibedi of conniving with the court registrars to obtain taxation orders seeking payment “for no work done.â€
The Government in 2006 granted Aya Group a 15-acre prime land in Nakasero, where offices of the national television (UTV) were, to construct a five-star hotel expected to host some CHOGM activities. However, the hotel was not completed in time for the event.
In December last year, Hansa and Lloyds, a PR firm, sued the company over non-payment of $372,811 (about sh643m) in consultancy fees.
Aya had hired the firm to counter negative publicity and improve confidence in its financial standing. This move was to enable the group qualify for the loans to build the Hilton Hotel.
THE Aya Investment Group, a firm constructing the multi-million dollar hotel in Nakasero, has clashed with their former lawyer over payment of US$2.5m (about sh5b) in legal fees.
Lawyer Muzamiru Kibedi of Kibedi & Co. Advocates, whom the Aya officials accuse of fraud, last year helped the investors secure a US$41.5m (about sh70.5trillion) loan. The money was got from the Industrial Development Corporation, a South African finance company, to complete the Hilton Hotel.
The loan, for which Kibedi’s law firm drew the documentation, was granted in October 2007, according to documents seen by The New Vision.
Despite receiving the first installment of the loan in November last year, Kibedi says, Aya is yet to pay his legal fees.
According to the Advocates Remuneration Rules, Kibedi argues, lawyers are entitled to 5% of the loan secured by their clients as legal fees.
Roy Byaruhanga, the High Court deputy registrar, on Thursday issued a certificate of taxation, requiring the Aya Group to pay Kibedi US$2.5m.
“Since December 2007, I have been reminding them to pay me. Instead of honouring their obligation, they (AYA) want to arm-twist me,†Kibedi, who was responding to Aya’s accusations, told The New Vision on Saturday.
“They had offered me US$3,000 (about sh5.1m) but I refused and instead sued them. Then they (AYA) denied that I never rendered services for their loan acquisition. This was false,†Kibedi said, while viewing copies of the agreement between Aya and the South African finance company to prove his case.
Aya claims it cleared the lawyer’s fees.
The Group chairman, Mohammed Hamid, accused Kibedi of attempting to defraud the company.
He was addressing a press conference in his office in Nakasero at 8:00pm on Friday.
He added jokingly: “US$2.5m is too much money for Kibedi. He cannot claim it. He has never even seen it.â€
The criminal investigations department spokesperson, Fred Enanga yesterday said Kibedi was interrogated on Friday and inquiries were still going on.
Aya legal officer Ahmad Mayanja accused Kibedi of conniving with the court registrars to obtain taxation orders seeking payment “for no work done.â€
The Government in 2006 granted Aya Group a 15-acre prime land in Nakasero, where offices of the national television (UTV) were, to construct a five-star hotel expected to host some CHOGM activities. However, the hotel was not completed in time for the event.
In December last year, Hansa and Lloyds, a PR firm, sued the company over non-payment of $372,811 (about sh643m) in consultancy fees.
Aya had hired the firm to counter negative publicity and improve confidence in its financial standing. This move was to enable the group qualify for the loans to build the Hilton Hotel.