Tycoon Sudhir Ruparelia, the proprietor of the Ruparelia Group of Companies has been dragged in businessman Patrick Bitature’s USD 10m troubles with South African money lender, Vantage Capital.
Multiple credible sources close to Bitature have revealed to theGrapevine that in 2014, a team of shrewd lawyers in the city connected Bitature to Vantage capitals to give him a loan to save some of his properties that Sudhir had threatened to take.
These sources divulged that at that time, Sudhir through his defunct Crane Bank wanted to take some of Bitature’s property for failing to pay their loan.
Crane bank was demanding USD 8 million from Bitature and he had used some of his hotels and buildings to secure the loan.
Sources divulged that Bitature was advised that to save his properties from being taken by Sudhir, he had to get money from Vantage Capital.
When Bitature contacted Vantage Capital, they agreed to give him USD 10 million loan.
Bitature instructed his lawyers, MMAKS Advocates, to draft the agreement.
Sources added that the city lawyer who connected Bitature to the South African lending company told them (Vantage) to use the services of Kirunda & Wasige Advocates to represent them in the sealing of the agreement.
Sources divulged that because Bitature was under pressure to save his empire from being put down by Sudhir’s Crane Bank, he accepted the tough conditions in the agreement including the 13% interest annually.
He also agreed to pay all the taxes of the loan.
Sources contend that Bitature’s lawyers by then told him that Vantage cannot pay the taxes because they are not registered to operate in Uganda.
Bitature agreed to use part of the remaining USD2m to pay the taxes.
When the deal was signed, Vantage paid the money through Bitature’s Stanbic Bank account.
Sources further revealed that upon receiving the money, Bitature was supposed to transfer it from his Stanbic Bank account to another account in Crane Bank.
This was a few days to the end of the period to repay Sudhir’s loan.
Surprisingly, when Sudhir learnt that Bitature had got the money, he went missing.
Bitature rushed to Crane Bank to deposit the money but the workers there, who were handling his loan told him that Sudhir had given instructions that he (Bitature) was supposed to wait for him to receive his payment.
Because time was running out, Bitature used his State House connections to reach to President Yoweri Kaguta Museveni for help.
“It was President Museveni who made a phone call to the late Tumusiime Mutebile, the former Bank of Uganda governor, to receive Bitature’s money. Mutebile told Sudhir to collect his money from Bank of Uganda,” the source said.
The source added that Bitature moved very fast and deposited the money at Bank of Uganda.
Surprisingly, 20 minutes after depositing the money, Bitature received a phone call from Sudhir.
Sudhir told Bitature that he was busy but his people have told him that he (Bitature) was looking for him.
Sudhir ‘innocently’ asked Bitature whether he had got his money, Bitature told Sudhir that he had got the money and because he couldn’t find him, he had deposited it in Bank of Uganda.
Sources added that after paying Sudhir, Bitature invested the few remaining money in his Simba Properties Investments company limited.
Sources asserted that Bitature was in good books with Vantage until 2019.
Around 2019, he had another cash squeeze. He instructed his lawyers of MMAKS Advocates to restructure the agreement because he was under pressure to pay.
Sources disclosed that Vantage lawyers told Bitature that he had to add on his securities if he wanted to restructure the agreement.
His lawyers advised him that based on what he wanted; it was the right move but he refused.
Sources added that this pressure forced Bitature to run and hire Fred Muwema’s services to rescue him.
Talks between Bitature and Vantage stalled until 2020 when Justice Boniface Wamala referred them for arbitration.
Sources said that Bitature petitioned the International Council of Commerce in the United Kingdom for arbitration and the process is still ongoing.
In a bid to quickly buy time to save his client, Muwema petitioned the Financial Intelligence Authority (FIA) accusing Vantage of money laundering and the matter is still under investigation.
Muwema also advised Bitature to quickly change the names of some of the shareholders of his companies.
When Vantage Capital lawyer Kirunda got information that Bitature was quietly changing the shareholding for some of his companies, he rushed to Buganda Road Court and placed a petition to privately prosecute Bitature and his wife Carol.
Kirunda petitioned court to have Bitature and Carol privately prosecuted for trying to change the shareholding for his companies he had already placed as security on his loan.
When Muwema learnt of Kirunda’s petition, he ran to the Commercial court to challenge the private prosecution of his client.
Hence the judgement from commercial court judge Mubiru slapping cost on Muwema.
Sources close to Bitature revealed that their client is willing to pay some of the money but he wants the debt reduced by cutting down the 13% interest rate.
By Sengooba Alirabaki
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