Businessman Patrick Bitature has been directed by the International Chamber of Commerce Court of Arbitration in London to repay over $65.7 million (approximately Shs244 billion) to Vantage Mezzanine Fund II Partnership, a South African investment fund. The ruling came on July 31st, after a legal dispute between the parties.
The arbitration was overseen by Prof Fidfelis Oditah KC, SAN, a sole arbitrator. The ruling stated that the South African company had succeeded in its claim against Bitature, and he was ordered to cover their reasonable costs. The court cited Bitature’s obstructive and unreasonable approach to the arbitration as a factor in its decision.
Bitature, a Ugandan businessman, had faced attempts by Vantage to auction his properties, including hotels in Uganda, to recover the loan. The properties were owned by Bitature but were mortgaged under his real estate holding company, Simba Properties Investment Company Limited.
The dispute began in 2014 when Vantage lent Bitature money for investments in Moyo Close Apartments and Skyz Hotel in Naguru. The South African company claimed that neither Bitature nor his entities had repaid the loan, and that he had obstructed their attempts to enforce the securities given to them in Uganda through various court proceedings.
The court ordered Bitature to repay $25.4 million personally for breach of contract and for him and his wife to transfer 30,000 shares to Vantage Mezzanine Fund II Partnership. Additionally, Bitature’s companies—Simba Telecom, Linda Properties, and Elgon Terrace Hotel—were ordered to collectively repay $35.8 million, along with other related costs.
This ruling marks the conclusion of a lengthy legal battle that involved various legal suits and proceedings in both Uganda and London.
