Kampala | Over the years, Shumuk Group has been embroiled in various legal conflicts, notably with the Katatumba family, businessman Drake Lubega and Bank of Baroda, revolving around property ownership and debt issues.
In the new findings, the Nakawa Magistrates Court sanctioned a production warrant under the criminal case no. 617 of 2024 on February 22 calling that the accused city property merchant be produced in court without fail.
“You are hereby directed to produce the above-named accused person to appear before Chief Magistrates Court of Nakawa on the Friday, February 23rd at 2 pm,” read the production warrant.
This development follows multiple efforts to have Lubega appear in court which almost drove to holding the businessman in contempt of court.
This is barely a year since the Nakawa Court sanctioned an arrest warrant of the daughter of the deceased businessman, Boney Mwebesa Katatumba.
“Whereas Angella Katatumba and others still at large stands charged with the offence of attempted murder contrary to section 204 (a) of the penal code Act (cap 120); theft contrary to Section 254(1) of the Penal Code Act (cap 120) and conspiracy to commit a felony c/s 390 of the Penal code act (cap 120),” read the warrant of arrest served to Uganda Police to execute the arrest of Angella.
Related reports indicate that the Katatumba family has been embroiled in multiple cases following the passing of Boney.
In September 2021, NilePost, a Ugandan online news site reported that Court remanded businessman, Rugiirwa Katatumba for allegedly participating in electronic fraud
Appearing before Nakawa Chief Magistrate, Dr. Douglas Singiza, Rugiirwa was charged with electronic fraud contrary to section 19 of the Computer Misuse Act 2011 and receiving stolen property contrary to section 314 of the Penal Code Act.
Prosecution told court that between January 24, 2018 and February 8, 2018, Rugiirwa employing deception and to secure unfair gain, deliberately performed fraudulent online transactions on Pegasus Technology Limited’s payment platform amounting to shs206 million purporting that the money was the payment of services rendered to Katatumba Safaris Limited whereas it was not true.
We have also, on a separate occasion, learnt that Shumuk Group denounced the activity in the contested property concerning a two-acre parcel of land located in Kampala’s Nakawa Industrial Area situated on plot 26 along Mukabya Road
Despite its prime location near Spear Motors on Jinja Road and adjacent to commercial establishments like car bonds and warehouses, the land remained largely undeveloped until recent events unfolded.
Earlier this year, an interim order was issued by High Court registrar John Paul Eduko instructing Bank of Baroda Uganda Ltd to cease the sale of Shumuk Aluminium Industries Ltd’s plant in Nakawa and one of its prime properties in Naguru-Lugogo UMA showgrounds.
This order comes amidst a legal dispute between Shumuk and the bank, with the court deeming the proposed sale as ‘illegal.’
Bank of Baroda had previously issued ‘a sale notice’ for the aforementioned properties, setting a 30-day ultimatum for Shumuk to settle an outstanding loan.
However, the court’s interim order has halted these proceedings until the final disposal of the lawsuit filed by Shumuk against the bank.
In the lawsuit, Mukesh Shukla, the CEO of Shumuk Group, contests the bank’s claims regarding a loan amounting to USh6.3 billion, as well as additional sums approximating USh1.3 billion. Shukla maintains that the group has settled its obligations to the bank and questions the validity of the outstanding debt claimed by the bank, asserting that the loan was obtained for working capital purposes.
The bank, on the other hand, asserts that Shumuk Group still owes them a significant sum totalling USh18.4 billion, including accrued interests and unpaid sums.
In response to the bank’s ‘sale notice,’ Shukla argues that it is unjust for the bank to attempt to auction properties that served as collateral for a loan that Shumuk had already repaid.
Shumuk Aluminium Industries, founded in 1984, remains one of Uganda’s leading manufacturers of aluminium products, employing over 1000 workers directly and indirectly.
The potential closure or takeover of Shumuk by the Bank of Baroda could have significant repercussions, including job losses and a decline in tax revenue for the government.
Represented by Badru Bwango of Bwango, Araali, and Company Advocates, Shumuk Group continues to contest the bank’s actions in court.
The registrar’s interim order serves to temporarily halt the bank’s sale proceedings, pending the resolution of the ongoing legal dispute.
