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10 creditors file claims at URSB to recover their money from AYA
The Pearl of Africa Hotel on Nakasero Hill in Kampala. Even before the construction of the hotel, owned by Sudanese businessman Hamid Mohammed, could start, it was plunged into controversy. Photo/file
What you need to know:
- Sources close to the matter indicate that AYA is hugely indebted due to a $80m loan advanced by South African lender, IDC
At least 10 creditors have lodged claims at the Uganda Registrations Services Bureau (URSB) through which they will seek to recover unpaid debts north of $80m due to AYA Investments.
Mr Steven Baryevuga, the URSB senior communications and media relations officer, yesterday told Monitor that on Monday they had held a meeting with 10 creditors, whose details he declined to reveal, citing client confidentiality.
“Only 10 creditors showed up [in the meeting on Monday]. There will be another meeting [date not indicated] to verify claims of indebtedness by creditors who have lodged claims,” he said, declining to reveal the amount of money that is due in claims.
However, people familiar with the matter, yesterday told Monitor AYA is hugely indebted, largely due to an outstanding loan due to South African lender, Industrial Development Corporation (IDC).
In 2007 or there about, IDC advanced AYA $20.75m to develop a hotel project in Kampala after the $90m project had run into financial trouble.
It was not immediately clear whether the loan is part of the money that creditors are seeking to recover.
Sources that asked for anonymity to speak freely, indicated that AYA has an outstanding loan of about $80m that was advanced at various intervals for the construction of a hotel project around or before 2007.
Monitor also understands that Mr Robert Mugabe, the URSB director of insolvency and receivership, is managing the liquidation process.
AYA has experienced numerous financial issues, many of which have ended up in court.
For instance, a number of companies including Sanlam, Fresh Cuts, Total, Umeme and Kampala Capital City Authority have previously sued AYA over failure to pay for supplied goods and services.
In 2018, KCCA threatened to close AYA over failure to remit hotel tax and local service tax that had accumulated to about Shs50m.
However, AYA, court details indicate, disputed the claim, in a case, which is yet to be disposed of.
Similarly, in 2019 Fresh Cuts petitioned court in a case in which it prayed that AYA be declared bankrupt over failure to pay Shs50m accumulated in supply of beef and related products between October and December 20217.
Other claimants, Monitor understands, include utility companies such as Umeme, statutory bodies and a number of others that have won or filed cases against AYA.
In 2021, Total sued AYA over refusal to pay Shs76m, which had been accumulated in unpaid petroleum products supplied between 2017 and 2018.
URSB yesterday indicated that the process, in which creditors’ claims will be analysed, will take about two weeks before payments are sanctioned.
However, URSB noted payment of creditors will give priority to regulators such as Uganda Revenue Authority, which shall then be followed be creditors with the highest debt portfolio.
Efforts to get a comment from AYA proved futile by press time.
Money due to IDC
Monitor could not readily establish whether IDC had lodged a claim to recover about $80m advanced to AYA for a $90m hotel project that it started before or in 2007.
Details indicate that AYA had been acquiring loan facilities from IDC to construct the Hilton Hotel project in Kampala. However, the project has been changing names over time.
AYA owns a signature hotel - Pearl of Africa Hotel - in the leafy suburbs of Nakasero, which overtime, has been quoted in a number of controversies, some of which have ended up in court.
