PROPERTY WAR! Madhvani Group Accuses Minister Kaboyo of Using State House to Grab Rippon Falls Hotel
By Nelly Otto
Jinja
A decade-long dream to revive the historic Ripon Falls Hotel in Jinja City is faltering under the weight of protracted court battles and alleged exploitation of office and connections by influential individuals.
The Madhivani Group, a renowned conglomerate in Uganda, plans to transform the dilapidated hotel into a modern, five-star establishment, boosting tourism and commerce in the region.
However, Hon Alice Kaboyo the Minister of State in the Office of the Prime Minister in charge of Luwero Triangle, who also claims ownership of the property through her company Cable International, is being accused of using her State House connections to obstruct the project.
This is the same minister who in June 2012 pleaded guilty in a corruption scandal connected to the Global Alliance for Vaccines and Immunization (GAVI) case.
Kaboyo, who was jointly charged together with three former health ministers, Jim Muhwezi, his deputies Mike Mukula and Dr. Alex Kamugisha, was sentenced to a fine of 20 million Shillings or an eight prison jail term. She chose to pay the Shillings 20 million fine. Represented by the late Bob Kasango, Kaboyo pleaded guilty to two counts of abuse of office and writing documents in the name of the former private principal presidential secretary, Amelia Kyambadde. Court heard that Kaboyo had already returned Shillings 250 million out of the Shillings 524 million that was allegedly advanced to her to prepare advocacy conferences.
BACK TO THE PROPERTY SAGA
But Simon Anywar, a former tenant and steward who speaks on behalf of Kaboyo refutes the allegations as baseless and misplaced and instead accuses the Madhivani Group acquired the building fraudulently and is using underhand methods to get certificates of title.
“…they are also using threats and intimidation besides underhand methods like attacking and vandalizing the premise at night when they caused serious damages to the property and personal belongings…”, Anywar said in a telephone interview.
Simon Anywar insists that Hon Kaboyo is the rightful owner having got the allocation from the Departed Asian Property Custodian Board(DAPCB).
He says Kaboyo’s team is reportedly in talks with top investors in Europe to develop the former hotel to the best standard, vowing that there is nothing the Madhvani Group will do to stop them.
S.K. Iyengar, Company Secretary of Madhivani Group, without mentioning names, laments, “…someone is using her State House connection to literally frustrate investments… We’ve invested heavily in this project, but our money is locked into the facility, and we cannot move forward….”
He also wonders why someone who is closed to the powers that be should use her position to contradict her principal who is President Yoweri Museveni with a very firm stand on investments in Uganda.
The dispute has led to a stalemate, with Jinja City Council authorities stepping in to issue a notice to the Madhivani Group to renovate the facility or face legal action.
Moses Otimong, Town Clerk, warns, “…this is a final notice to overhaul the dilapidated building by renovating and providing sufficient sanitary facilities not later than October 20, 2025…”
Iyengar questions why Kaboyo is misusing her influence to hinder development, saying, “…why should someone with State House connections misuse their influence negatively on innocent investors like us who have done a lot for Uganda…?”
Reports from trusted sources indicate that the matter escalated to President Museveni’s desk. After listening to both parties, he advised them to engage in a round-table discussion to resolve the issues amicably.
According to sources, Hon. Kaboyo verbally attacked Mayur, accusing him of collaborating with elements linked to Idi Amin Dada’s regime, specifically the family of the late Brig. Gen. Ali Fadhul, who were involved in the expulsion of Asians.
This anti-Asian sentiment did not sit well with Mayur, who remained composed and reportedly declined Kaboyo’s demanded unreasonable sums of money as goodwill to abandon the deal.
Once again, Simon Anywar dismisses the claims as a frivolous statement coming from a supposedly responsible and genuine investor who should be guided by truth and transparency as key pillars in doing business.
Analysts say the dispute between Hon Alice Kaboyo a powerful minister closed to President Museveni and Mayur Madhavani’s Group over the property exemplifies a caricature of the complex and often contentious property wrangles involving high-profile individuals in Uganda who will always want to prevail over others using their powerful connections.
These disputes frequently involve the use of office and state organs like the police, military, courts, among others to further individual interests.
Officials including councilors at Jinja City Council led by Speaker Bernard Mbayo are concerned that the city and its residents are being deprived of a substantial investment that would bring huge revenue and employment opportunities.
In the former Ripon Falls hotel, reports suggest that the top police managers like the RPC SSP Charles Nsaba, the DPC SP David Kamugira and the FFU Zonal Commander SP Julius Turyabona alongside the OC Operations ASP Atukwase Ivan are acting on the so-called ‘orders from above’, which most Ugandans are already fed up with.
The Madhivani Group has a 99-year lease for the property, which was transferred to them in May 2022 after a court ruling dismissed the consolidated application involving the Departed Asians Property Custodian Board and other claimants.
On the question of appeal, Iyengar says the Departed Asian Property is now out of time to file an appeal so they have lost conclusively and should allow us to carry on the development.
In Uganda the time limit to file an appeal is 14 days for criminal cases and 30 days for civil cases from the date of the court’s decision or judgement.
Temporary Injunction-the order is now outdated due to expired lease due to effluxion and DAPCB has no claim over the new lease granted to Madhivani Group.
The Order was issued on 12 October,2022 following an application by the Departed Asian Property Custodian Board restraining Muljibbhai Madhivani and Company Limited formerly Madhivani group Limited.
“…that a temporary injunction doth issue restraining the Responded, its agent, employees or persons acting under its behalf from transferring, taking possession of the suit properties in LRV 104 Folio 4 Plot 31 and LRV 44 Folio 5, Plot 33 and 35 Nile Crescent Road evicting the tenants/occupation of the suit properties or dealing with the suit or dealing with the suit properties in any way until the determination of the main suit…” reads the Temporary Injunction Order.
This was in reference to the Miscellaneous Application Number 195-2022 arising from the Civil Suit Number 47 of 2022 ruling made by Lady Justice Dr Winnifred Nabisinde and read by Her Worship Linda Nakalema in the presence of representative counsels from both parties Hillary Nathan Ebila State Attorney’s office and Omoro Juma Noah counsel for the respondent.
Iyengar also raised the issue of DAPCB status accusing it wasting court’s time by failing to file an appeal at the right timeframe but resorted to filing a case in the high court in Jinja which is abuse of court process.
Res judicata-finality and closure which provides finality to legal disputes meaning that once a court has made a decision, that decision is binding and cannot be endlessly reopened.
According to legal experts, res judicata also known as ‘claim preclusion’ is a legal principle that prevents reopening of cases that have already been decided by a court. It ensures finality and closure in legal disputes promoting judicial efficiency and preventing endless litigation.
This case highlights the challenges investors face when dealing with misuse of office and connections in Uganda’s business landscape. Commentators are eagerly waiting for the final outcome of the dispute which they say is likely to have implications for investor confidence and the business environment in Uganda.
What You Need To Know:
The Madhavani Group is a renowned conglomerate in Uganda, East Africa founded in 1914 by Muljibhai Madhvani and has since diversified interests in various sectors including agriculture and agro-processing specializing in sugarcane, tea and floriculture.
Other fields include manufacturing of sugar, sweets, confectionaries, packaged tea, soap packaging materials, matches and steel. The group is also engaged in services having established hotels and tourism, insurance, construction and information technology as well as biomass energy and bioethanol production.
Some notable companies under the Madhivan Group include Kakira Sugar Works the flagship enterprise and one of Uganda’s largest sugar producers. There is also Kabuye Sugar Works, a sugar complex in Rwanda, Kajjansi Roses, a floriculture company exporting roses to Europe, East African Underwriters an insurance company and Mweya Safari Lodge and Paraa Safari Lodge, among others.
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