Court orders firm to settle ex-minister Musumba’s bill
The State Minister for Urban Development, Mr Isaac Musumba told journalists at Imperial Royale Hotel in Kampala yesterday that Nakigalala will be the first ultra-modern city in Uganda with three more to follow. FILE PHOTO
What you need to know:
- This came after Mr Gilbert Nuwagaba, the lawyer representing former State minister for Urban Development and Planning Isaac Musumba, appeared in court, seeking orders compelling Videocon Industries to show cause why his client should not recover his legal fees.
The Commercial Court has given lawyers representing UK-based company Videocon Industries Ltd a one-week ultimatum to provide a detailed report on how far it is with paying $72,437,850 (about Shs255b) to DEI Minerals International Ltd.
“The matter is adjourned to February 9, 2022, at 11am to provide a detailed report on the progress of the execution process in London,” Commercial Court Deputy Registrar Agnes Nkonge held last Thursday.
This came after Mr Gilbert Nuwagaba, the lawyer representing former State minister for Urban Development and Planning Isaac Musumba, appeared in court, seeking orders compelling Videocon Industries to show cause why his client should not recover his legal fees.
This was based on an earlier consent order that the parties entered into on July 11, 2019, before Justice David Wangutusti. Back then, the parties agreed that M/S Isaac Isanga Musumba & Co. Advocates law firm is entitled to the said legal fees.
Registrar Nkonge inquired from the two parties whether they had been in touch about the matter. She then gave them one week to come to a consensus.
The legal fees arose in 2006 when DEI Minerals and its managing director, Mr Matthias Magoola, applied and obtained two mining licences (Kirwa Wolfram mines located in Kisoro District and Mwerasandu Tin mines, located in Ntungamo District).
They also acquired a location licence in respect of Mwerasandu Tin mines, which Mr Magoola later surrendered to the government to pave the way for the transfer to Videocon Natural Resources PLC. This was reportedly because he was very attractive to foreign investment. Agents of Videocon Industries Ltd approached Mr Magoola in 2006 with the proposal of a joint venture.
To that effect, they entered into a memorandum of understanding and agreed to form a new company floated on the London stock exchange so as to enable the new entrants to get shares.
The parties agreed that on the incorporation of the new company, Videocon Natural Resources PLC, Mr Magoola would transfer the licences to Videocon Industries Ltd plus 99 percent of DEI Minerals International Ltd shares to the new company, while Videocon was to inject $100m in the project.
Videocon Industries Ltd, however, allegedly failed to inject the said $100m, which rendered the operations of the mine impotent. This perceived breach in obligations is what kicked up the current legal battles.
