Prime
Investors lose bid to block ministers from selling bank shares
Mr Mbabazi & Mr Rugunda
What you need to know:
The UAE-based investors claim that Premier Amama Mbabazi, ICT Minister Ruhakana Rugunda and their business partner, Amos Nzeyi, did not give them shares at National Bank of Commerce which they allegedly paid Shs14.4 billion for.
United Arab Emirates (UAE)-based investors who sued the ICT minister, Prime Minister and business associates over breach of contract have lost a bid to block the sale of National Bank of Commerce (NBC) shares.
Kampala High Court Judge Christopher Madrama dismissed the application that sought to block ICT Minister Ruhakana Rugunda, Premier Amama Mbabazi and businessman Amos Nzeyi from interfering in the management of the bank, saying the matter was stayed pending arbitration in London.
“The injunction applied for arising out of the main suit was already stayed. All applications under this suit are also stayed,” held Justice Madrama, who also quashed an interim injunction earlier obtained from the registrar.
The judge argued that the interim injunction obtained before the registrar was illegal because the matter was already stayed. The investors sued the trio for allegedly failing to hand over 76 per cent shares in National Bank of Commerce they paid for.
Arbitration in London
However, last month the court referred the matter for arbitration in London as per the agreement between the accused parties and the complainants.
Mr Noah Mwesigwa, the lawyer representing the investors, had sought court orders restraining the trio from selling shares and to force them to handover the paid up shares.
