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Distributor Drags Nile Breweries To Court For Being Repressive And Terminating His Contract In Bad Faith In Favour Of Another Person

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Nile Breweries operations manager Thomas Kamphuis

A distributorship battle has developed among Nile Breweries distributors with the Company top bosses being accused of siding with recent entrants against their longstanding distributors.

This battle has already culminated into a court case after one of the most affected companies, Salvation Distributors Ltd whose contract dates as far back as 2002 sued Nile Breweries over the said mistreatment.

“Prior to receiving the said email, the Managing Director of the Plaintiff (Salvation Distributors) company was approached by two officials from the defendant (Nile Breweries) company who requested him to sell off his business and goodwill to another distributor M/S Keshwala Group of Companies. The plaintiff’s Managing Director out-rightly rejected their request clearly informing them that he had no intention of selling off his business,” reads in part the court documents

Salvation filed at the High Court Commercial Division showing how Nile Breweries crafted the plot to throw him out of business for another distributor Keshwala. Salvation had an agreement with Nile Breweries to be the sole distributor of its products in the areas of Kyengera to Kayabwe and Maddu in Mpigi district.

According to the various documents attachment to the case, Salvation’s profits have been high since 2002. Due to the huge profits, In 2017, Nile Breweries requested Salvation’s Managing Director Gregory Gidagui Mafabi to set up a state-of-the-art Warehouse at Kayabwe.

Gidagui invested Shs2.5bn in the construction of the warehouse and purchase of new trucks, he ensured that the “return to issue (RTI) of the empties” was above 97% by purchasing more than 4000 empty bottles.

Gidagui adds that he was also forced to dispose off a number of properties as well as obtain credit facilities from various banks to raise the necessary funds to comply with the defendant’s new terms and conditions.

“Further to the above investment, Salvation Distributors procured a Distribution Management System (DMS) hardware as directed by Nile Breweries at a cost of Shs11.4m,” he stated. Nile breweries insisted that for better distribution of their product, Salvation Distributors had to change to this system which they sold to Gidagui and promised him that they were going to train his employees on how to use it. Salvation Distributors alleges that they fulfilled all the conditions.

While launching its Shs2.5bn store in 2017, Nile Breweries operations manager Thomas Kamphuis was marveled at the great work and effort made by Gidagui. In a surprise turn of events, Gidagui waited for experts from Nile Breweries to train his staff on how to use the DMS to no avail and indeed, according to court documents, none of his staff has been trained to-date.

As he was still waiting on the experts to come and train his staff, Gidagui started receiving inadequate supplies of Nile Breweries products yet he had stepped up his capital. He wrote to them and Kamphuis promised to work on the issue. To his utter shock and surprise, Nile Breweries instead sent him a letter dated May 28, 2018 informing him that they had received communication from him stating that because of inadequate supplies, they had decided to terminate his contract with them and they had decided to find an alternative distributor for his area.

He wrote back on the same day informing them that he had not and has never developed any interest in terminating his distributorship contract with Nile Breweries. Nile Breweries new manager informed him that he was new on the job, he called for a meeting with Salvation Distributors on July 2, 2018 to discuss his issue. Surprisingly, while he was waiting to meet the Nile Breweries MD, he received a letter from the top management of the company asking him to sell his Goodwill to Keshala which he rejected.

“On July 2, 2018, when MD Gidagui arrived at Nile Breweries offices for the meeting, he was given a notice of termination of distributorship agreement. According to the said notice, the reason for the termination was his failure to use the Distributor Management System,” read in part the court documents. When Gidagui tried to appeal, he was told that the notice of termination was final. Through his lawyers of Muwema, Advocates and Solicitors, Gidagui says Nile Breweries did not act in good faith to have this dispute settled since they were partly to blame for failing to train his staff.

Muwema says that none of the other distributors were given the same conditions to fulfill as his client and worse of all, he is being punished for failing to surrender his business to someone else. Muwema says that none of the current distributors matches Gidagui’s record.

“At the trial, Salvation Distributors shall also aver and contend that the alleged failure to use the DMS is not a ground for termination of distribution agreements; consequently, Salvation seeks damages for breach of contract against the defendant (Nile Breweries). Salvation shall further aver and contend that Nile Breweries’ acts of issuing a notice of termination which was unfounded was high-handed, repressive and done in bad faith for which he seeks exemplary damages,” he states.

The High Court Commercial Division Registrar Festo Nsenga has already issued an Interim Order blocking Nile Breweries from completely terminating Salvation Distributors’ contract.  In his ruling delivered on Monday, Nsenga stated that this interim order should stay in place till September 25, 2018. “It is hereby ordered that: an interim order is hereby issued restraining the respondent (Nile Breweries), its agents and or servants from enforcing the Notice of Termination dated June 26, 2018 and July 16 threatening to terminate the Distributorship Agreement dated October 3, 2002 between the Applicant and the Respondent (Salvation Distributors), for marketing, selling and distributing of the respondent’s products in the areas of Kyengera, Kayabwe, Maddu and Mpigi District, pending the hearing of the main Application (HCM/640/2018) on September 25, 2018,” Nsenga ordered.

He adds that this order is subject to extension where necessary. The order was issued in the absence of lawyers or representatives from Nile Breweries despite having been served with this application and responding to it. Salvation distributors was fully represented by its lawyers Fred Muwema and Charles Nsubuga.

Our efforts to talk to Nile Breweries were futile as our calls went unanswered.

 

By Jamil Lutakome     

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I’m Going To Start A Bank Where We Lend People Without Asking For Land Titles Or Security – Pr. Bujjingo

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House of Prayers Ministries International (HPMI) senior Pastor Aloysious Bujjingo has told his congregation that he is soon going to start a bank where people can borrow freely without collateral.

During his ‘chapter 2’ sermon on Thursday, Bujjingo said that after the construction of 38,000 Pentagon seater church, he is going to start the battle to fight poverty by empowering Ugandans financially.

“I strongly believe that after the construction of Pentagon a 38,000-seater church, there is no reason why anyone among us should be poor,” Pr. Bujjingo Said.

Pr. Bujjingo declared that despite facing many detractors, who are trying hard to soil his name, he is ready to bless others because God has also blessed him. He said that he doesn’t want much from the world apart from fulfilling his calling of making sure that people are delivered both spiritually and physically.

He said that there are many educated people who are suffering because they lack opportunities to exercise their expertise.

“God has blessed us and many are educated among us, that’s why I have plans to establish a financial institution like a bank. Because so many here are accountants and you are teaching your children to be. I do not need to be an accountant but I need you who are accountants. I have declared it, those who want to fight against it, you can go head but God will establish it. We need to have a system of lending money to people without requiring land titles or any sort of security,” said Pr. Bujjingo who already employs hundreds of journalist, engineers, marketers and accountants under his Salt Media company.

He emphasized to the believers to avoid relying on gossip but work hard and listen to God if they want to triumph.

Bujjingo also dismissed social media allegations that he owns Canaan soda.

He Commended all the people who have stood with the ministry amidst the storm it has faced recently and the Salt Media audience who have persistently followed the message of the good news of the word of God.

By Doreen Menezer

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Uganda To Host Meeting On Natural Resources Management

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Uganda is to host the 1st great lakes and catchment management conference from the 5th to 7th June to discuss how the country can better utilize and manage natural resources to boost production and improve livelihoods.

Addressing a joint press conference to announce the conference, the organizing chairman Prof. Tenywa Moses expressed worries at the speed at which Ugandans are mismanaging the available natural resources namely, water, soil, forests, wetlands among others.

Prof. Tenywa further urged Ugandans to always use better preservation methods if the current resources are to be used over a number of years.

However, the commissioner water resources planning and regulation from the water and environment ministry, Dr. Callist Tindimugaya said that the amount of water in Uganda seems to be much but in actual sense it’s not enough, which has made it costly.

The experts warned that poor resource management by Ugandans will negatively impact on agriculture and other economic activities hence deter Uganda from attaining her desired attainment of the middle-income status.

At the forthcoming conference, scientists will be producing a number of researches on natural resources management in the country.

By Mboowa Nathan

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MTN WOES: Furious M7 Orders CMI, ESO To Kick Off Investigations Into The Relationship Between MTN GM Katamba And Jailed Police Boss Nixon Agasirwe

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Former MTN General Manager Anthony Katamba

President Museveni has ordered the Chieftaincy for Military Intelligence (CMI) and the External Security Organisation (ESO) to investigate the relationship between Former MTN General Manager
Anthony Katamba and jailed police boss Nixon Agasirwe.

Katamba fled the country to seek asylum in Scandinavian countries after receiving several security tip offs from some of his colleagues in security that he was going to be arrested for giving wrong information to security.

Multiple sources in CMI and Special Forces Command (SFC) have told the Grapevine that the president has relied on those reports to exonerate the deported MTN Chief Executive officer Wim Vanhelleputte.

“The president was very furious because he established from different security reports that he was fooled on the MTN matter. The president was very furious and instructed CMI commander Col. Abel Kanduho to immediately start investigating Katamba,” our source revealed.

The highly respected security operative told this website that Katamba, the former General Manager for Corporate Services at MTN was the one misinforming security agencies by giving them wrong information concerning some of his colleagues for his personal gain.

Our sources disclosed that when Katamba developed misunderstandings with top MTN management over some internal issues, he decided to malice and marline them before government and security officials that they were carrying out activities that were going to jeopardize national security. Katamba told these officials that MTN was being used to spy for one of the hostile neighbouring country. 

“That man Katamba thought that he is the big man in MTN because of his closeness to the MTN board chairman Charles Mbiire. He learnt of his dismissal from MTN and he vowed to fight and make sure all expatriates at the facility are deported. He boasted before his friends at Kampala club that he is the only top local employee in MTN,” another source added.

Security operatives told the Grapevine that Katamba even fed security with wrong information that led to the storming of MTN’s center in Mutundwe, a Kampala suburb.

Vanhelleputte was deported with three other senior managers who included; Chief Marketing Officer, Olivier Prentout, the Mobile Money General Manager Elsa Mussolini and General Manager for sales and distribution Annie Tabura. Vanhelleputta challenged his illegal deportation at the High Court civil Division.

KATAMBA PLACED IN AGASIRWE’S RACKET

Our sources further revealed that after reading various security reports on the MTN saga, the president established that there was a good relationship between General Kale Kayihura’s blue eyed boy SSP Nixon Agasirwe and Katamba. One of the well elaborated report to the president indicated that there were a lot of suspicious dealings which were going on between Katamba and Agasirwe. The investigators also based reports on the judgment of High Court anti-corruption Division judge Lawrence Gidudu, in the 2015 case of Richard Mwami and others, concerning the embezzlement of over 6 billion shillings. 

Sentongo (who was Mwami’s witness) testified that after arresting him, he was taken to a room at the Special Investigation Unit (SIU) in Kireka. Minutes later Agasirwe entered the room in company of Katamba. Sentongo testified that Agasirwe and Katamba told him to pin Mwami that he stole the Shs6bn, when he refused, he was brutally tortured.

Both Katamba and Agasirwe were later accused of torturing Sentongo.  Currently, Agasirwe is detained with other top police officers at Makindye barracks after being charged by the Court martial on espionage and kidnap charges. The president has tasked CMI to dig deeper into the dealings between Katamba and Agasirwe.

KATAMBA PINNED FOR STAGING AN ASSASINATION

Sources further told this website that one and half month’s back, Katamba reported to police that some people wanted him dead.

Katamba alleged that unknown gunmen attacked him at his Kiwatule home at around 3:00am. He stated that he escaped through the gate at the back of his house and narrowly survived being killed. Museveni also ordered the investigators to find out whether Katamba was attacked, who the attackers were plus their motive.

A source revealed that the president was briefed in the MTN security report that Katamba staged the alleged assassination to avoid being charged with espionage. He also wanted to use the alleged attack to seek asylum because he got information from his security friends that he was under investigation.

KATAMBA FLEES THE COUNTRY

Credible sources further told this website that two weeks ago, Katamba fled to Scandinavian countries. We were informed that Katamba is currently seeking asylum from one of the Scandinavian countries. We talked to Katamba’s friends who he usually spends time with at Kampala Club and Golf Course, they revealed that they have spent two weeks without seeing him.

“I have spent a week without seeing my friend Katamba, I don’t know whether he left the country,” one of Katamba’s friends, who we found at the Golf Course playground told us.

We tried to talk Katamba’s girlfriend but he refused to tell us the whereabouts of her hubby. We also tried to call Katamba’s known phone number but it was not going through.

By Jamil Lutakome

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