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EXCLUSIVE: Uganda To Lose Shs14bn In Pride Microfinance Fraud Scandal

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price http://crownheights.info/wp-includes/feed-rss.php geneva;”>Government and Pride Microfinance Limited (PML), healing http://centroilponte.com/wp-content/plugins/all-in-one-event-calendar/app/model/settings.php a government-owned financial institution, are accused of acquiring shares from Pride Uganda (which later metamorphosed into PML) of which they failed to pay.


It’s a sickening scheme where a clique of individuals hired by government to put in place an NGO to cater for micro finance institutions end up demanding shares in a company they never invested even a coin.


In 1996, the Government of Austria and Norway and the GOU entered into an agreement to improve the living standards of low income groups especially in rural areas by supporting a credit programme for micro-enterprises in the informal sector.


The project was to be called Pride Africa Uganda Project.

Jonathan Campaigne, the founder of Pride Africa Inc. (PA), was contracted to do the job.

The implementing body of this project on behalf of the GOU was the Ministry of Labour and Social Welfare. The Ministry later entered into an agreement with Pride Africa and the latter was tasked with receiving funds from the Government of Norway and Austria to implement and run the Pride Uganda Project.

The said project was to be under the management of Pride Africa its board of directors.

In 1999, Pride Africa Uganda Limited was incorporated as a company limited by guarantee and its main objective was to take over the business and activities of the Non-Governmental organization known as Pride Africa together with the property, assets and liabilities thereof.

In the Agreement with the Government of Norway, Article V it was agreed that “all equipment, etc, purchased under this agreement shall become the property of the GOU or a mutually agreed local institution”.

Under Addendum 3 of the bilateral Agreement between the GOU and of Norway, it was further agreed that PAU should consent and discuss suggested changes to its institutional and legal set up in the bid to transform into a profit organization.

By resolution extracted from minutes of the Extra Ordinary meetings of PAUL held of 15th May 2001 the following resolutions were passed:

The name of the company was to be changed from Pride Africa Uganda Limited to Promotion of Rural Initiatives and Development Enterprises (Uganda) Limited (Pride Uganda)

The following persons were to be admitted as members of the company: Dr. Simon Kagugube, Mr. Grace Lwanga Musoke, Mr. John Ddumba Sentamu, Mr. Leo Kibirango and Mrs Sarah Lubega.

The Articles of Association were amended to include the GOU and Norway as stake holders. This amendment was stipulated by the stakeholders as condition for the continued financial support by the GOU and Norway and for the transfer of undertakings, business and activities together with the property assets and liabilities acquired through the project PAU.

Jonathan Campaigne, Patrick Ocailap and John Mpyisi resigned as directors to be replaced by the following persons John Mpyisi, Patrick Ocailap, Mr. Grace Lwanga Musoke, Mr. John Ddumba Sentamu, Mr. Leo Kibirango, Mrs. Sarah Lubega and another nominee of government.

DRAMATIC TWIST

According to Pride Uganda’s lawyer Byenkya Kihika, Government of Uganda represented by the Ministry of Finance deprived his client of its property – 9,795,918 shares without fair compensation.

They say on the advice of Bank of Uganda by letter dated 16th June 2005, the GOU acquired the said shares from the plaintiff and the share transfers provided that consideration for the shares be determined.

The plaintiff claims GOU has never sat down with them to determine the consideration as agreed and the shares are worth Shs 14,694,877,700 of which the government has failed to pay.

The Defendant’s lawyers of Kasirye, Byaruhanga and company advocates urge that the plaintiff (Pride Uganda) was a successor company to a wholly Government microfinance project funded by the Government of Norway and Austria run by Pride Africa which was beneficially owned by the GOU.

Upon its incorporation, it assumed all the functions of the said Pride Africa and all the funds that constituted the plaintiff’s microfinance business were grants for the benefit of the GOU.

The defendants argue that the plaintiff avers that the Board of Directors of the Plaintiff Company committed fraudulent acts and abused the trust granted to it by the GOU in the process of incorporating PML, therefore the plaintiff is not titled to any payment as alleged in the plaint.

At this stage, the plaintiff has presented three witnesses including Moses Aldrin Kimuli who was a company secretary PML, Grace Musoke Lwanga- Director board member PAU and Jonathan Campaigne the founder of Pride Africa Inc. (PA).

The Defendants on Tuesday presented two witnesses one, Chris Kassami, Permanent Secretary Ministry Of Finance and Patrick Ocailap who was a government nominee on the Board of Directors PAU.

The remaining two witnesses who will appear in April include Monica Mugenyi, a judge at the High Court and the Norwegian Ambassador.

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