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Home Security

Taifa Partners Managing Director Latest Victim of Predatory Money Lending

Insight Post Uganda by Insight Post Uganda
December 1, 2024
in Security
Reading Time: 6 mins read
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Director Taifa Partners

Director Taifa Partners Limited.

The design, supply, and installation project of silos for the Uganda Prisons Services, worth 13 billion shillings and awarded to Taifa Partners Limited, has become embroiled in controversy due to a dispute between the shareholders, stemming from predatory money-lending practices.

According to documents seen by our reporter, Taifa Partners Limited, in a joint venture with the United Kingdom-based Perry Engineering Services, was awarded the contract in 2022 for the design, supply, and installation of silos for Uganda Prisons in Kasese.

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The documents reveal that Taifa Partners approached Davanti Union, a well-known money lender, to finance the project by securing a performance bond.

Records show that Taifa Partners has two shareholders: Emmanuel Asiimwe, who holds 90% of the shares, and Davanti Union Limited, owned by Joseph Kamusiime, a former operative of the Joint Anti-Terrorism Taskforce. Kamusiime is now a complainant in a criminal case before Buganda Road Chief Magistrates Court, where he accuses Asiimwe of ten counts of forgery.

These include forging signatures on board resolutions, powers of attorney, and false documents, including a resolution appointing Kamusiime as a signatory to the company’s bank accounts at Stanbic Bank and I&M Bank. Records also show that before Davanti Union acquired its 10% shareholding, the shares were owned by Charles Okello, a director and secretary who held 5%.

Before Davanti’s involvement, documents indicate that Asiimwe held 95% of the shares, and Taifa, in partnership with Perry Engineering Services, had a joint venture. Subsequently, Davanti Union Limited signed an agreement with Taifa to finance the project, with the condition that Kamusiime first recover the money invested in the performance bond. Afterward, they would share the profits equally (50% each).

However, the defense alleges that Davanti Union, after reviewing Taifa’s potential for future projects, conspired with Charles Okello and Assa Tumwesigye, a nephew of the accused (Asiimwe), to falsely accuse him of forging resolutions. The alleged intention was to have Asiimwe imprisoned before Uganda Prisons Service made the final payment, at a time when the project had been substantially completed and was awaiting payment.

Before Chief Magistrate Ronald Kayiizi, the prosecution alleges that between July 15th and 20th, 2022, at Ministers Village in Ntinda, Kampala, Emmanuel Asiimwe and others forged powers of attorney, falsely claiming that Asiimwe had been appointed the representative for the Uganda Prisons contract, replacing Assa Tumwesigye.

It is also alleged that Asiimwe knowingly and fraudulently uttered a false document at the Uganda Registration Services Bureau (URSB) at Georgian House, Kampala, in the form of a forged special resolution dated July 15th, 2022.

The resolution was purported to have been signed by Charles Okello, the then-company secretary, but was not. Additionally, Asiimwe is accused of forging another special resolution dated April 27th, 2022, purporting that he had been appointed the sole signatory to the company’s account at I&M Bank in Kampala, and that it had been approved by Charles Okello.

Asiimwe maintains his innocence. Clare Hashikamana, Deputy Head of Questioned Documents at the Directorate of Forensic Services in the Uganda Police Force, testified in court on Friday.

She explained her role in examining documents to establish authorship, detect counterfeit documents, and identify alterations.

Hashikamana said that the directorate receives requests from various entities, including police stations, for criminal matters, and that she had prepared a report based on her findings, which was signed and stamped by her department.

Taifa Partners Limited's lawyers
Taifa Partners Limited’s lawyers

The court heard that Hashikamana was asked to examine five documents, including a special resolution dated July 15th, 2022, a powers of attorney dated July 18th, 2022, a special resolution from April 27th, 2022, and two board resolutions from May 2022. The documents bore signatures allegedly attributed to Charles Okello.

Hashikamana testified that, after analyzing the sample signatures using scientific methods such as a video spectral compactor, sketching, and visual observation, she found strong evidence suggesting that the questioned signatures were not those of Charles Okello.

Defense lawyer Stanley Okecho inquired whether Hashikamana found evidence that Asiimwe had forged the special resolution dated July 15th, 2022, or the power of attorney, to which Hashikamana responded that neither was included in her findings.

Pius Katumba Busobozi, another lawyer for Asiimwe, questioned Hashikamana about the laboratory’s ISO certification and its standards for examining questioned documents. Hashikamana clarified that while the laboratory is not ISO certified, it follows ISO/IEC 17025 standards.

Roger Mugabi, another defense lawyer, asked Hashikamana about the chain of custody of the evidence, to which she explained that Detective Wilberforce Rumanyika had submitted the request forms but did not confirm the specific details of receipt.

It was also revealed that three different reports with conflicting findings were compiled from this case, but Hashikamana could not provide information on their whereabouts.

State Attorney Ivan Kyazze re-examined Hashikamana, asking about the payment for the forensic report, to which Hashikamana responded that payments were made to the Uganda Revenue Authority (URA). Earlier, Charles Okello, the first prosecution witness, denied signing the documents, admitting to having a business grudge with Asiimwe.

He claimed to have been paid only 50,000 shillings for his shares in Taifa Partners Limited. The second witness, Cissy Kasana, an office administrator who had been hired and fired by Asiimwe, testified that she had a grudge with Asiimwe and was brought back to the company by Kamusiime after her dismissal.

She also testified that Charles Okello was not in Kampala when the resolutions were signed, as he had traveled to Soroti. In cross-examination, she stated that she did not know directors could approve resolutions while away from the office. Kamusiime, the third witness and complainant, noted that he and Asiimwe had disputes, including a matter before the Uganda Registration Services Bureau (URSB) and the Arbitration and Commercial Court.

Kamusiime had sought the arrest and detention of Asiimwe and for the court to appoint someone to manage the company’s bank accounts while Asiimwe was in jail.

When Chief Magistrate Ronald Kayiizi asked Kamusiime why he, as the complainant, had brought the case despite the forgery allegedly occurring before he joined the company, Kamusiime, appearing shy, claimed he was acting as a concerned citizen. Kamusiime is represented by lawyers from a firm, Lens Advocates, which records show is not approved by the Law Council.

He is also represented by Andrew Wamina from Stratten Advocates and Arthur Tomusange from Muwema and Company Advocates. Asiimwe’s legal team is from GEM Advocates and includes Pius Busobozi Katumba, Roger Mugabi, Stanley Okecho, Patricia Mugisha, and Elizabeth Namanya.

Evidence presented to the court further shows that Charles Okello had asked Asiimwe to pay off Assa Tumwesigye before anyone could use him to take wrongful action.

The case has been adjourned to January 10th, 2024, for the prosecution to present its fifth witness. Asiimwe contends that he is being persecuted by individuals attempting to fraudulently take over his company. Asiimwe remains out on bail.

A few weeks ago, the Minister for Finance, Planning, and Economic Development, Matia Kasajja, issued Legal Notice No. 21 of 2024 under the Tier 4 Microfinance Institutions and Money Lenders Act, capping interest rates charged by money lenders, which led to the loss of properties.

President Museveni has also promised to draft a law to regulate predatory money-lending practices, where people lose their properties over minor issues.

Tags: Buganda Road CourtTaifa Partners Limited
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