{UAH} Pojim/WBK: The Kigongos fail to agree on Mosa Court apartments

http://www.observer.ug/news-headlines/39750-the-kigongos-fail-to-agree-on-mosa-court-apartments

The Kigongos fail to agree on Mosa Court apartments

Written by Derrick Kiyonga

Last Updated: 09 September 2015

The Kigongos

NRM Vice Chairman Moses Kigongo's tense battle with his partner Olive Kigongo over Mosa Court Apartments worsened on Monday, as his lawyers told court that she has no shares in the company. 

In her January 15 petition filed at the High court civil division, which seeks to wind up Mosa Court, a pricey lodging facility in town, Olive claimed she has a 15 percent stake and Moses owns an 85 per cent stake in the company.

Olive, who is also the chairperson of the Uganda National Chamber of Commerce and Industry, claims she turned around the company and repaid a loan worth $800,000. But Moses accused her of mismanaging the company and accumulating losses  worth Shs 5.6bn.

The allegation of mismanagement of funds prompted Olive through her lawyer Peter Walubiri to ask High court to compel Moses to produce financial documents of Mosa Court that prove she indeed mismanaged the finances. The documents Olive wants Moses to produce in court include payment vouchers, bank withdrawal slips, receipts, bank telegraphic transfer instructions, acknowledgements, receipts and cheques.

But when the case came up for hearing on September 7, 2015, before High court Justice Steven Musota, Moses' lawyer Fred Muwema argued that Olive was not a shareholder in the company.

"She has no locus to seek for those documents. In her application, the applicant [Olive] never attached a copy of the member's register because it's only them [members] that can apply for such documents. She has not even attached a copy of the transfer of shares indicating who sold to her the said shares," Muwema said. 

Moses' lawyers argue that Olive's demand for the financial documents shows that she doesn't know her case.

"Discovery [of documents] shouldn't be used as a fishing expedition by the applicant to build a case which she isn't sure about. The petitioner's case is that the company should be wound up because she is being mistreated; she should stick to that," Muwema contended.

In response, Walubiri, Olive's lawyer, insisted that the Articles of Association prove her co-ownership.

"All the documents clearly show that the applicant [Olive] holds 15 per cent stake in the company while Alhajji Moses Kigongo has 85 per cent," Walubiri said.

According to Walubiri, it's very important that Moses discloses the financial documents since it was him who alleged without showing proof that Olive misappropriated Shs 5.6bn.

"My lord this is a serious allegation [misappropriating money] considering that the applicant would want the company wound up. So, she must show that she really has clean hands," Walubiri said.

"If she really drew two million dollars [Shs 5.6bn], if court would believe this, perhaps she is not entitled to the reliefs that she is seeking. If the documents are produced, the applicant can have an opportunity to explain away the allegations," he said. 
Failed talks

Before the case could be heard, both Walubiri and Muwema told Justice Musota that an out-of-court settlement failed hence court has to resolve the matter.

According to sources, the talks failed because Olive rejected the Shs 1bn Moses offered her to give up her stake in Mosa Court. The source told this newspaper that Olive wanted Shs 2bn, which Moses wasn't willing to offer. Justice Musota will rule on the disclosure of financial documents on September 24.  
dkiyonga@observer.ug 

The Kigongos fail to agree on Mosa Court apartments
http://www.observer.ug/news-headlines/39750-the-kigongos-fail-to-agree-on-mosa-court-apartments‎

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