The Uganda Registration Service Bureau (URSB) has overturned the decision of the High Court in the ownership battle over Saracen Uganda Ltd (SUL). URSB ruled that the shareholding structure of the company should return to the time of incorporation in 1995.
According to Daily Monitor, URSB stated that it has powers to rectify a business register among other grounds if the information is misleading, inaccurate, or issued in error.
“From the facts at hand, it is clear that the respondents (South African) restricted the company’s shareholding without SUL’s express consent which, according to the company’s articles is illegal and therefore ought not to be done in the first place. There is also evidence that affairs of the company are not being run correctly,” the ruling signed off by a one Kule Walid, a registrar of companies at URSB reads in part.
SUL was incorporated in 1995 as Special International Ltd (SIL) at the time owned 75 percent and Gen Salim Saleh’s Special services Ltd (SSL) held 25 percent.
The publication states that the security firm recruited as its core personnel retrenched National Resistance Army (NRA) soldiers whose fight brought President Museveni to power.
The October 12 URSB decision was in respect of a petition filed in January 2017 by SSL, now represented by Gen Saleh’s wife, Jovia Kyomuhendo challenging the divesture of SIL’s shareholder holding.
The two South African nationals and shareholders, Lafras Luitingh and Hendrik Pelser, alias Bill Pelser accuse Kyomuhendo of trying to irregularly take ownership of the company. They allege financial impropriety and mismanagement including staffing the company with kinfolks and friends while several long-serving employees have been constructively dismissed.
The South African shareholders allege the company’s chief executive is Alexander Akandwanaho, son of the Saleh was illegally appointed adding that the company has not held any board meeting since 2016.