Fang Fang owner wants Shs94b for compensation
Ms Fang Min. COURTESY PHOTO
What you need to know:
Last month, Mr LV Weidong was quizzed over fraudulent conduct in the acquisition of a multimillion dollar minerals deposit at Osukulu Hills.
Kampala. The proprietor of Fang Fang Hotel in Kampala has asked court to order Guangzhou Dong Song Energy Group Limited, a phosphate firm in Tororo District, to pay her $25m (Shs94.2b) as compensation for loss of her business interest.
Ms Fang Min accuses her former partner, Mr LV Weidong, the proprietor of Guangzhou Dong Song Energy Group, of alleged fraudulent acquisition of a multi-million dollar minerals deposit at Osukuru Hills in Tororo.
He is jointly sued with Mr Mao Jie and Mr Yang Junjia over alleged fraudulent and unlawful expropriation of 26 square-kilometre mineral site.
Other parties accused include Uganda Hui Neng Mining Limited.
In her submissions before the Commercial Division of the High Court yesterday, Ms Min asked for general damages and exemplary damages to cater for her shares in the assets of Uganda Hui Neng Mining, which were illegally transferred to Guangzhou Dong Song Energy Group Limited.
Submission
Mr Ebert Byenkya, the plaintiff’s lawyer, said the claim is the valuation of his client as per the 2018 expert valuation report that shows that the value of her shares increased.
“The meeting that made the resolution for the transfer of the assets and mineral exploration licences at Osukuru was illegal. The asset was substantial but no approval was granted and Mr LV Weidong owns and controls 100 per cent of the entire business as per evidence,” Mr Byenkya said.
He also invited the court to assess Mr LV Weidong’s conduct in the transaction which involved filing forged documents presented as well as making Mr Jie and Mr Junjia to sign as directors yet they are not subscribers nor paid up directors as required by law.
Mr Byenkya said the resolution that formed the basis for transfer of the shares was made without the knowledge and consent of Ms Min, who owned 35 per cent shares in the initial company.
Presiding judge David Wangutusi extended the hearing of the case to May 21.
Probed
Last month, Mr LV Weidong was quizzed over fraudulent conduct in the acquisition of a multimillion dollar minerals deposit at Osukulu Hills. Mr Weidong was questioned on how he transferred the mineral exploration license from the original company owner, Uganda Hui Neng Mining Limited to Guangzhou Dong Song without the consent of shareholder, Ms Min.
