Ugandan businessman Patrick Bitature and his wife Carol Bitature are now facing criminal charges brought by the state in a $26 million commercial dispute with South African money lender Vantage Mezzanine Fund 11 Partnership.
The DPP’s decision comes after Kirunda & Company Advocates’ criminal prosecution of the Bitatures. The couple maintains that the dispute is purely commercial and is being addressed through relevant civil procedures and negotiations.
The lending agreement at the center of the dispute dates back to 2014 when Vantage advanced $10 million to Simba Group. Economic challenges, including the impact of Covid-19, caused financial distress to Bitature’s businesses, leading to difficulties in meeting payment obligations to Vantage.
The couple negotiated with Vantage for additional financing to address liquidity issues. However, Vantage’s pursuit of transferring shares in Bitature’s company resulted in legal disputes.
In 2020, Justice Wamala ruled that the dispute was commercial and ordered arbitration. In 2022, Vantage’s attempt to sell Bitature’s properties was halted by the Court of Appeal.
Arbitration proceedings concluded in July 2023, with Bitature ordered to repay over $65.7 million to Vantage, an amount his lawyers contest and intend to object to in the Kampala High Court.
Bitature has been engaging various stakeholders for financing to settle the issue, emphasizing that it is a commercial dispute and should be handled through civil courts or negotiations.
He questions the legitimacy of using criminal prosecution in the case, considering the commercial nature of the dispute. Bitature has applied to the Court of Appeal to set aside the High Court’s order for their prosecution.
As the legal battle continues, the dispute highlights the challenges faced by businesses in navigating complex financial arrangements amid economic uncertainties and external factors.
