March 14, 2024.
KAMPALA, Uganda | A fresh development has emerged in the ongoing legal dispute between city tycoon Patrick Bitature and a South African-based company regarding a substantial loan transaction. The Buganda Road Chief Magistrates Court has given a green light to a private criminal prosecution against the directors of Vantage Mezzanine Fund II Partnership, the South African lending entity.
The case revolves around a staggering loan of approximately shs360 billion ($10 million) extended by Vantage Mezzanine Fund II Partnership to Ugandan businessman Patrick Bitature. This contentious issue has sparked controversy and legal action, with lawyer Wycliff Atuhairwe, practicing with Moogi Brian & Company Advocates, petitioning the court against the directors of Vantage Mezzanine Fund II Partnership.
Atuhairwe alleges that since 2014, the South African lender has been operating in Uganda illegally, conducting money lending business without proper registration or licensing. This purported violation of Ugandan laws prompted the lawyer to seek approval for a private criminal prosecution against the directors of the company.
In a ruling delivered by Buganda Road Principal Grade One magistrate, Winnie Nankya, the court granted Atuhairwe’s request, acknowledging that all statutory and procedural requirements had been satisfied. Nankya emphasized the seriousness of the allegations, giving the green light for the commencement of a private criminal prosecution against the directors of Vantage Mezzanine Fund II Partnership.
Consequently, charges have been sanctioned against the directors, including Warren Van Der Mernse, Mokgome Mogoba, and Drek Alexander, for conducting money lending business in Uganda without a valid license, a contravention of section 84(1)(a) of the Tier 4 Microfinance Institutions and Money Lenders Act, 2016.
The court has issued criminal summons for the three directors, who are obligated to appear before Buganda Road Court on March 22. The outcome of this legal proceeding will undoubtedly be closely monitored by many in Uganda and South Africa.
