Tian Tang Group, which manages Sino-Mbale Industrial Park, has cleared the air on their partnership dispute with Automobile Group (U) Limited, another Chinese company.
According to their statement, Automobile Group (U) Limited was established following a cooperation agreement between Mr Liu Qingshan, Mr Yan Sheng and Zhang Zhigang in December 2019 in which the company was to among others carry out the business of assembly of automobiles.
Liu Quingshan Yan Sheng and Zhang Zhigang were the shareholders and as Tian Tang Group authorized the investment and allowed its chairman to invest in the company, 10 acres of the land in the Sino-Uganda Mbale Industrial Park were allocated to the company, on top of a 640 square meter exhibition hall, 2,700-square-meter workshop and apartment in the Namanve Industrial Park rent free for three years.
Tian Tang says that in one of the terms of the cooperation agreement, all shareholders were prohibited from undertaking business which conflicts with that of the company.
“In April 2023, Mr Liu went on and registered another company Watu Auto Works (U) Ltd engaging in the same business with Automobile Group (U) Co. Ltd. In October 2023, Mr Liu still without the consent from fellow shareholders, registered another competing company NEC-WATU AUTOMOBILE (U) Ltd, with 80 percent shares and NEC with 20 percent shares,” the statement says.
NEC is the commercial arm of the UPDF.
According to Tian Tang Group, the two companies started using the premises of Automobile Group for their operations and that Liu “deliberately” excluded all partners from participating in the business and refused to render any accountability for the investment.
“This conduct clearly violated the agreement between the partners and occasioned considerable loss. We also realized that Mr. Liu forged the signature of our chairman on company documents in a bid to adjust the shareholding to his own benefit and that of his son.”
The company says its chairman sought reconciliation and through the Head of State House Investors Protection Unit Col. Edith Nakalema, efforts were made to mediate and reconcile the parties.
The company however says Liu declined to cooperate or present any information to assist the process.
They also say that during the mediation meeting, it was agreed that the parties commission a comprehensive audit of Automobile Group(U) Limited to establish its state from date of inception.
“It’s more a year, since the mediation agreement was signed and the audit report has never been concluded due to failure by Mr. Liu to comply. In the end Col. Nakalema concluded that the process had failed,” Tian Tang Group said.
The company said that having realized that Liu partnered with NEC conduct competing business, they asked that they vacate the premises, a request Liu refused to heed to.
“ Our lawyers K&K (Kiwanuka and Karugire) Advocates commenced the process of legally evicting Mr. Liu from our premises and the matter is pending in the courts of law.We also sought the intervention of General James Mugira to assist with the mediation. The process of mediation by general is still underway.
The company however says they were taken by surprise by the claims that they charge money from investors to see President Museveni and other government officials.
Tian Tang Group suspects these allegations are peddled by Liu’s group.
“On a monthly basis, Chinese investors in the Sino-Uganda Mbale Industrial Park hold meetings with the management to discuss issues that may affect their operations and solutions are provided. It is through these meetings that we discuss issues arising and where need seek redress from relevant government bodies at no cost,” Tian Tang Group said.
“We offer free services to investors who agree to come to Uganda, including but not limited to business registration, certification, marketing, setup, importation clearance, tax compliance, warehousing among others.”
Tian Tang said its chairman is a law abiding and respectful investor concentrating on developing Uganda through industrialization, noting that he cant engage in any dubious acts.
“Tian Tang Group maintains a professional working relationship with all government agencies in a bid to attain its goals. We take this opportunity to reassure our stakeholders, partners, and general public that we remain committed to transparency, accuracy and truthfulness and request you to ignore the false and malicious reports circulated by actors.”