{"id":7411,"date":"2021-03-31T17:37:29","date_gmt":"2021-03-31T17:37:29","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/?p=7411"},"modified":"2021-03-31T15:15:42","modified_gmt":"2021-03-31T15:15:42","slug":"court-verdict-casts-shadow-over-kilembe-mines-deal","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/court-verdict-casts-shadow-over-kilembe-mines-deal","title":{"rendered":"Court verdict casts shadow over Kilembe Mines deal"},"content":{"rendered":"

Africa-Press<\/a> – Uganda<\/a>. <\/strong><\/span>Government is yet to against the order for cancellation of the concession agreement for Kilembe Mines between the government of Uganda and Chinese firm, Tibet Hima Mining Company Limited, senior government officials have revealed.<\/p>\n

Last week, court ruled that government through the Attorney General (AG) and Kilembe Mines Limited acted wrongfully and unlawfully when they concessioned the shares of Kilembe Mines, belonging to the late King of Tooro, Sir George David Kamurasi (GDK) Rukidi III, without the consent and participation of the administrators.<\/p>\n

Mr Moses Mwase, the director of the Privatisation Unit in the Finance ministry, yesterday said the court judgment raises issues that need to be clarified.<\/p>\n

\u201cThat judgment is appealable because the court seems to have ignored some of the evidence on record,\u201d he said in a telephone interview.<\/p>\n

On what next for the government, Mr Mwase said: \u201cWe shall wait to hear from the office of the Attorney General (AG) because it (judgment) is strongly appealable.\u201d<\/p>\n

The plaintiffs, who are Tooro princes; Gilbert Mujogya and Franklin Jocelyn Kato Rukidi, sued the AG, Kilembe Mines Limited and Tibet Hima Mining Company Limited for alienating their late father\u2019s 380 shares in Kilembe Mines without their knowledge, consent and participation and also re-allotting their shares to only 10 shares.<\/p>\n

The duo, according to the court document, are the administrators of the estate of late Sir George David Kamurasi Rukidi III who died in 1965.The Commercial Division of the High Court ruled that the award of the concession to Tibet Hima Mining Company Limited was illegal because the government did not involve or consult the complainants, who are shareholders, while making decisions.<\/p>\n

According to the court document, the mines at Kilembe, in Kasese District are owned by a limited company; Kilembe Mines Limited and government is a majority shareholder and thus cannot make decisions alone without going through the company organs like holding shareholders\u2019 meetings.<\/p>\n

A source privy to the matter revealed that over the years, the government has single-handedly managed the affairs of Kilembe Mines as though it is the sole owner.<\/p>\n

What court judgment means<\/b><\/p>\n

Mr Alfred Okello Oryem, the lawyer representing Tibet Hima Mining Company, said it was wrong for the court to declare null and void the concession because internal processes of a government entity that led to the concession\/ contract should not affect its validity.<\/p>\n

\u201cTibet Hima Mining Company is now considering suing the government for causing it to invest more than $33m on a contract that is illegal. For the government, it should appeal,\u201d said Mr Oryem.<\/p>\n

On the issue of acquiring a new investor, Mr Oryem said: \u201cAs far as Tibet Hima Mining Company is concerned, the government has no legal basis to procure a new investor in Kilembe before the disputes are resolved with shareholders.\u201d But a lawyer who did not want to be named but is privy to the matter explained that the government can always acquire an investor so long as it is done legally by involving all shareholders.<\/p>\n

\u201cUnder the law, the government is not supposed to trade in Kilembe Mines whether finding an investor. All the government can do is to sell its shares,\u201d he says.<\/p>\n

The court decision for which the government has not started an appeal process means that any serious investor, during due diligence must exercise caution to ensure that matters raised in the judgement are attended too to avoid indulging in illegalities.<\/p>\n

\u201cIt calls for caution and most importantly to ensure that all shareholders are on board. Dealing with the government solely will be illegal,\u201d the lawyer said.<\/p>\n

Currently, the government is embroiled in another case with Tibet Hima Mining Company over breach of contract. The case has since been referred to London for arbitration.<\/p>\n

In 2013, Tibet Hima Mining Company, a consortium of Chinese companies, was awarded a concession to revive the mining activities at Kilembe Copper Mines.<\/p>\n

According to Mr Oryem, Tibet Hima was awarded a 25-year concession and was supposed to pay $1.5m (Shs5.4b)per year after paying an initial deposit of $6.5m(Shs23b) and invested $33m (Shs120b)to revive the mines but it was in possession for only three years.<\/p>\n

Court orders and declarations against AG, Kilembe Mines Limited and Tibet Hima Mining Company<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. Government is yet to against the order for cancellation of the concession agreement for Kilembe Mines between the government of Uganda and Chinese firm, Tibet Hima Mining Company Limited, senior government officials have revealed. Last week, court ruled that government through the Attorney General (AG) and Kilembe Mines Limited acted wrongfully and […]<\/p>\n","protected":false},"author":84,"featured_media":7410,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[233,240,234],"class_list":["post-7411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nCourt verdict casts shadow over Kilembe Mines deal - Uganda<\/title>\n<meta name=\"description\" content=\"Government is yet to against the order for cancellation of the concession agreement for Kilembe Mines between the govern ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/court-verdict-casts-shadow-over-kilembe-mines-deal\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Court verdict casts shadow over Kilembe Mines deal\" \/>\n<meta property=\"og:description\" content=\"Government is yet to against the order for cancellation of the concession agreement for Kilembe Mines between the govern ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/court-verdict-casts-shadow-over-kilembe-mines-deal\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-31T17:37:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2021\/03\/img-606491ff95c73.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"518\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/court-verdict-casts-shadow-over-kilembe-mines-deal#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/court-verdict-casts-shadow-over-kilembe-mines-deal\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Court verdict casts shadow over Kilembe Mines deal\",\"datePublished\":\"2021-03-31T17:37:29+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/court-verdict-casts-shadow-over-kilembe-mines-deal\"},\"wordCount\":715,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/court-verdict-casts-shadow-over-kilembe-mines-deal#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2021\/03\/img-606491ff95c73.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/court-verdict-casts-shadow-over-kilembe-mines-deal#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/court-verdict-casts-shadow-over-kilembe-mines-deal\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/court-verdict-casts-shadow-over-kilembe-mines-deal\",\"name\":\"Court verdict casts shadow over Kilembe Mines deal - 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