Court blocks Pearl of Africa sale
Pearl of Africa Hotel in Kampala. The financier says that Aya has failed to pay them about Shs429b. File photo
KAMPALA- An application for an interim order has been granted to Aya Investments blocking Industrial Development Corporation of South Africa Ltd from interrupting operations of Pearl of Africa Hotel on allegations of breach of contract.
The order granted on March 7 restrains the financial institution from taking any action against Pearl of Africa Hotel (PoA) until the main application is heard.
“It is for an interim order of injunction, restraining the respondent from interfering with the management and operations of the applicant’s hotel business, from advertising and foreclosure of the applicant’s properties,” reads the interim order.
According to the court order, the respondent, (Industrial Development Corporation of South Africa Ltd) is barred from conducting or continuing any recovery proceedings, pending the determination of the main application to be heard on April 4.
The respondent, avers that Aya has failed to pay them $118m (Shs429b) and that it abused court by initiating court proceedings before arbitration.
“That rather than honour its application to pay, and instead of submitting to arbitration as per the agreements, to have its complaints appropriately re-dressed, the applicant has resorted to initiating multiple court proceedings, in abuse of process,” said the defence.
Suit
The war according to Aya stems from 2007 when it entered into financing agreements with the respondent while putting up its hotel in Nakasero. However, misunderstandings developed mid-way, with accusations and counter accusations.
Aya says the South African company committed several breaches of the financing agreements, which resulted in gross delay of the hotel operations and in heavy losses.
It says the delay forced it to source other funding to complete the project.
Aya is now alleging that Industrial Development Corporation of South Africa Ltd wants to take over and sell the hotel.
