UGANDA, Kampala | Real Muloodi News | On January 22, the court issued criminal summonses against businessman Patrick Bitature and his wife Carol Bitature, requiring them to answer seven counts of conspiring to defraud more than $26.48 million (over USh100 billion) from South African money lending company Vantage Mezzanine Fund 11 partnership.
The summonses instruct the couple to appear before Buganda Road Chief Magistrate’s Court on February 6, following a private prosecution initiated by lawyers from Kirunda and Company Advocates on behalf of the South African company.
Chief Magistrate Ronald Kayizzi signed the summonses, endorsing the request for private prosecution. This development comes in the wake of an order by Kampala High Court Judge Rosette Kania on January 8, directing the prosecution of the Bitatures on charges related to fraud.
Court documents reveal that Patrick Bitature and his wife serve as directors of Elgon Terrace Ltd and Simba Telecom.
The prosecution alleges that between 2019 and 2020, the couple manipulated shares of their companies to defraud the Vantage Mezzanine Fund 11 partnership of $26,486,634.78.
The charges include fraudulent alteration of shares, filing false annual returns for Elgon Terrace Limited, and conspiracy to defraud.
The court specified charges against the 60-year-old businessman and his 56-year-old wife, ranging from providing false statements by directors to fraudulent alteration of shares and conspiracy to defraud.
The criminal division of the High Court in Kampala had previously ordered the commencement of a private criminal prosecution against the Bitatures, focusing on fraud charges linked to the said money.
Justice Kania emphasised the need to expedite justice, stating, “I find it necessary to remind the lower court of the dictate of Article 126(2)(b)… justice shall not be delayed.”
The charges brought against the Bitatures stem from Section 309 of the Penal Code Act, which pertains to conspiring with fraudulent means to affect the market price of publicly sold items or to defraud the public.
The alleged fraudulent activities took place in December 2014 when Simba Properties Investment Company, owned by Bitatures, borrowed $10,000,000 from Vantage Mezzanine Fund.
In turn, Bitatures offered shares in their companies, including Linda Properties Ltd, Elgon Terrace Ltd, Simba Properties Investment Company Ltd, and Simba Telecom Ltd.
The South African company, set to be the private prosecutor, contends that the actions of the Bitatures contravene Section 323 of the Penal Code, constituting fraud, and Section 309, involving false annual returns.
The court documents highlight the execution of various legal documents and the filing of false annual returns concerning the companies involved.
Under Section 42(1)(c) of the Magistrates Courts Act, any person with reasonable and probable cause to believe that an offence has been committed may initiate criminal proceedings. This provision enables individuals, other than public prosecutors or police officers, to make a complaint before a magistrate.
Such complaints may be made orally or in writing, signed by the complainant, and may result in legal action based on the evidence provided.
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