Court of Appeal in Kampala has sustained the earlier ruling which ordered AYA Investment Uganda to fulfil its debt obligation to the Industrial Development Corporation (IDC) of South Africa Ltd, saying the Ugandan company cannot appeal in the matter where the commercial court endorsed the payment of Shs611 billion award to the South African financiers.

In 2021, the Industrial Development Corporation of South Africa Ltd attempted to seize the hotel to recover a debt of $118 million but court issued an order restraining the South Africans from going on with the seizure process.

The money is part of the financing contract signed between AYA Investment and the South IDC to finance the construction of a hotel in 2007 in Nakasero, Kampala. AYA Investment says IDC made it hard for them as it delayed the disbursement of the money to them, which allegedly also resulted in delay of the project completion.

AYA also cited disputes with Uganda Revenue Authority (URA) on what taxes to pay but also admitted that it was going to be tough completing the construction in time, especially due to Uganda’s landlocked nature.

Further, in 2017, AYA Investment entered into another deal with a Belgium-based hotel company, Carlson Rezidor Hotel Group (now Radisson Hospitality) in January 2017. However, this was short-lived as Radisson withdrew six months later. It was replaced in September of the same year by a South African hotel brand, Sovereign Hotels on a short-term basis to oversee the opening the following month.

American group, Wyndham Hotels, and Resorts, then was hired by AYA boss Muhammed Hamid, in 2018 to manage the hotel, but this did not go far. The hotel is currently trading as WIN 5 Hotel & Spa since February this year. The branding has since changed from Pearl of Africa to Win 5, amidst reports that the Libyan foreign investment firm, LAICO has taken the majority holding of the hotel.

It is not clear how many companies and individuals have claims on AYA Investment, but one of the longest-running claims is by meat processing company, Fresh Cuts, which says that in 2017 AYA was supplied with assorted meat products worth Shs44.9 million which it failed to pay for.

Through Haguma Law Chambers and Advocates, Fresh Cuts secured commitments by AYA Investment to pay but it didn’t fulfil the pledge.

On September 12, 2018, Mengo Chief Magistrate Sarah Mbonye ordered AYA Investment to clear the Shs44.9 million debt plus a 25 per cent per annum interest from the year of default to the year of completion of payment, with allowable tax deductions of Shs10 million.

After failing to enforce this directive against the hotel owner, Fresh Cuts asked the court in 2021 to declare AYA Investments bankrupt following the expiry of the time agreed to clear the date as per the Insolvency Act, however did not happen.

In 2018, KCCA warned it would close the hotel located in Nakasero Kampala over failure to pay local hotel tax that had accumulated to almost Shs34 million. The hotel was requesting concessions like paying in instalments which KCCA rejected.

At the same time, the electricity bill was rising and by 2021, electricity distributer, UMEME was demanding over Shs800 million and resorted to power disconnections to force the company to pay.

Last year, Global company Sanlam General Insurance sued AYA Investments for breach of insurance contracts. Court ordered the company to pay a total of about Shs175 million to Sanlam.

AYA Investment joins businessmen like Patrick Bitature and Hamis Kiggundu whose companies do not want to pay debts.

Last month International Chamber of Commerce Court of Arbitration in London, the United Kingdom, has ordered Ugandan businessman Patrick Bitature, his wife Carol Nzaro and four of their companies to pay South African lender, Vantage Mezzanine Fund, Shs244 billion after he argued in Ugandan courts that the South African lenders gave him the money illegally and therefore he was not obliged to pay back.

Still this year in June the Supreme Court ruled that $11million which Diamond Trust Bank Uganda and Diamond Trust Bank gave to Kiggundu as a syndicated loan was legal after the businessman claimed the two sister banks did it illegally as “contravened the Financial Institutions Act. The case still hangs in court.

However, economists, banks, and financial regulators fear that the bad habit of Ugandan businessmen who get money from foreign sources and then don’t want to pay back is likely to negatively impact on foreign investment in the country.

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The National Resistance Movement (NRM) candidate, Uthuman Mugisha Mubaraka, has been declared as the winner of the Hoima District LC 5 By-election held on Thursday 15.

According to the final results were officially announced on Thursday night by Hoima District Returning Officer, Ms Merab Kasande, Mugisha, announced candidate who is also the son of the late LC5 Chairperson Kadiri Kirungi, with a victory of 18,353 votes, (52% of the total votes cast.)

Muhumuza Vincent Savana (Independent – who lost in NRM primaries) came second with 12,020 votes (34%) while Aguuda Moses (National Unity Platform-NUP) came third with 3972 votes (11%).

Other candidates included; FDC’s Musinguzi Patrick (271 votes) and Mugume Lennox (Independent) with 179 votes.

Ms Kasande declared that the total number of 34,795 votes was counted as valid, 724 were deemed invalid and 56 spoiled in the Thursday by-election. In total, there were 35,519 ballot papers used.

“I want to work for the people of Hoima District. Many people have been grappling with land-grabbing issues, which I am committed to addressing. I will reach out to the relevant authorities and ministries to ensure that land titles are issued, and those in need of compensation receive their due,” Mubaraka said.

The Electoral Commission Chairperson, Justice Byabakama, noted that the election process was largely free and fair, despite some disruptions caused by rain in the morning.

“This has been one of the best by-elections we had. In other elections, we always received several calls and complaints but this time there were minor issues. I personally received one call. For those who have lost, they should wait up to 2026,” he said.

The NRM Director for Mobilisation, Ms Rosemary Sseninde, attributed Mugisha’s win to youth involvement in the exercise saying as a party they have discovered that they need to keep working closely with the youth.

The Hoima District LC5 seat fell vacant following the death of then Chairperson, Mr Kadir Kirungi, who perished in a tragic motor accident on March 17, 2023.

The late LC5 chairperson, together with his bodyguard was involved in a collision with a Fuso truck along the Hoima-Kampala Road in Mataagi village, Bukomero town council, Kiboga district.

The by-election victory marks a pivotal moment in the political landscape of Hoima District as Uthuman Mugisha Mubaraka takes office, aiming to continue his father’s legacy and address the pressing issues facing the community.

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