UGANDA, Kampala | Real Muloodi News | In a recent development, the criminal summonses against businessman Patrick Bitature and his wife, Carol Nzaro, regarding a $26 million commercial dispute with South African money lender Vantage Mezzanine Fund 11 Partnership have been withdrawn by the court pending ongoing investigations.
The decision to withdraw the summonses was made during proceedings at the Chief Magistrates Court at Buganda Road, presided over by Mr Ronald Kayiizi.
Chief State Attorney Ms Joan Keko requested the court to vacate the criminal charges until investigations are completed.
She explained that a letter had been sent to the police to initiate investigations after the Directorate of Public Prosecutions (DPP) took over the case.
Documents were subsequently received from the private prosecutor, Mr Robert Kirunda, as per the court’s earlier directive.
Ms Keko stated, “The criminal summonses were issued before the DPP took over, and therefore, they collapsed. We pray that these criminal summonses are vacated until investigations are complete.”
Agreeing with the state’s request, Mr. Kayiizi ordered the vacation of the criminal summonses.
He stated, “Since the DPP, who took over the matter, has applied for the vacation of the criminal summonses pending investigations, the criminal summonses are hereby vacated. The case is adjourned to April 3, when the state will update the court on the investigations.”
This development comes after the Court of Appeal ordered Mr. Bitature to stand trial following the dismissal of his application seeking a stay of execution of a ruling and orders from the High Court.
Justice Hellen Obura, who presided as a single judge, deemed the businessman’s application incompetent and already overtaken by events.
Justice Obura commented, “Even if I had not found the application incomplete, I would still dismiss it for two reasons. First of all, this application has been overtaken by events as it is clear from the applicant’s supplementary affidavit in support of the application that the order sought to stay has since been executed by the chief magistrate when she sanctioned the charge sheet and any attendant document within five business days from the date of the decision.”
Background details reveal that the dispute stems from fraud charges levelled against the Bitatures under Section 309 of the Penal Code Act.
The allegations claim that Bitatures, through Simba Properties Investment Company, borrowed $10 million from Vantage Mezzanine Fund in December 2014, offering their shares in various companies as collateral.
The Bitatures, who were shareholders in these companies, allegedly altered the shareholding structure with the intent to defraud the South African lender and other creditors, violating Section 323 of the Penal Code.
The private prosecutor alleges fraud and issuing false annual returns in contravention of Section 309.
Responding to the court’s decision, the businessman’s legal team welcomed the withdrawal of the charges, labelling them as “frivolous.”
The case is set to proceed, with further updates expected after investigations are concluded, highlighting the complexity of legal matters surrounding commercial disputes and the intricacies of international financial transactions.
READ MORE LIKE THIS:
Businessman Patrick Bitature and Wife Summoned Over Alleged $26.48m Fraud
Court Halts Bitature’s Attempt to Transfer Shares of His Companies