Ezrah Kashumbusha.
KAMPALA, February 07, 2024 | In a developing legal showdown, Ugandan business magnate Patrick Bitature finds himself at the center of a criminal legal battle involving South African company Vantage Mezzanine Fund. The case, which revolves around a substantial $26 million, has taken a dramatic turn with the Directorate of Public Prosecution (DPP) taking over the criminal case.
At the heart of the matter are allegations of fraud stemming from a transaction dating back to December 11, 2014, at the Diamond Trust Building along Kampala Road. Bitature, along with his wife Carol Bitature, through their company Simba Properties Investment, purportedly borrowed $10 million from Vantage Mezzanine Fund, offering shares in several of their companies as collateral.
However, what began as a business transaction soon turned into a legal quagmire, with Bitature contesting the legality of Vantage Mezzanine Fund’s registration in Uganda, leading to a protracted legal standoff. Now, fresh criminal summons have been issued against Bitature and his wife, compelling them to answer to charges related to fraud.
The allegations, brought under Section 309 of the Penal Code Act, accuse the Bitatures of conspiring to affect the market price of publicly sold goods and defrauding the public through fraudulent means. Specifically, it is alleged that they altered the shareholding of their companies with the intent to defraud Vantage Mezzanine Fund and other creditors.
In November 2023, the Commercial Court issued a key ruling, preventing Bitature from altering the shareholding of four of his companies until a resolution is reached in the ongoing loan dispute with the South African financiers. This decision highlighted the gravity of the situation and the potential consequences for Bitature and his businesses.
Bitature’s attempt to change the shareholding structure of his companies was viewed by the court as a possible maneuver to circumvent the impending court decision, prompting swift intervention to safeguard the interests of Vantage Mezzanine Fund.
As the legal battle unfolds, the outcome not only holds implications for Bitature and Vantage Mezzanine Fund but also for the broader business community and legal landscape in Uganda. With the DPP’s involvement, a thorough examination of the case may be underway, highlighting the seriousness with which the allegations are being treated. It is however worth noting that the Director of Public Prosecutions (DPP) has previously wielded her constitutional authority to discontinue cases involving serious criminal charges.
