As violent confrontations among Chinese investors continue making headlines in Uganda, there’s a new twist in the ongoing situation.
The Chief Magistrate’s Court in Mukono has released on bail four managers from the Tian Tang Group, who were held last week on serious charges of attempted murder.
The courtroom was packed with curious onlookers and reporters, all eager to hear about the case involving Liang Kai, Bin Ding, Chen Cheng, and Wu Zhang, also known as Martin.
The tension in the air was palpable as the four men stood before the judge, their faces reflecting a mix of relief and worry.
The accusations against them stem from a violent fight over a business deal gone wrong, which left one person critically injured. Witnesses described a chaotic scene, with yelling and pushing as tempers flared in a heated confrontation.
This incident has raised concerns about the challenges foreign investors face in Uganda and the lengths to which some may go to protect their interests.
When the court announced the bail decision, the room erupted with mixed emotions, joy from the defendants and their supporters, and disappointment from those who believe justice should be served.
They were sent to Kauga Prison last week and later moved to Luzira Prison after allegedly attacking two fellow Chinese investors at their apartment in Namanve Industrial Park on September 18, 2024. The attack, which followed a business disagreement, left the victims with serious injuries.
The assault was reportedly carried out by seven Chinese nationals, with the help of armed men possibly connected to the Uganda People’s Defence Forces (UPDF), at around 5:00 AM.
The victims, Liu Qingshan (63) and Lu Hanbin (32), who owns the Ugandan NEC-WATU Automobile Group, were seriously hurt in the incident.
Today, Chief Magistrate Roselyn Nsenge granted the suspects cash bail of Ugx10 million each, with their sureties required to pay a non-cash bond of Ugx100 million each. Each of the accused had four sureties, including local leaders, business people, and Members of Parliament.
Nsenge stated that under Uganda’s constitution, the right to apply for bail is based on the presumption of innocence.
“The accused are presumed innocent until proven guilty, but it’s important to note that granting bail is not automatic,” Nsenge explained. “After reviewing the sureties presented to the court, I am convinced that the accused will not flee.”
Before granting bail, she advised the prosecution to appeal her decision if they believed it was too lenient. The case was then adjourned to October 31, 2024.
Background
According to a report compiled by the State House Investors Protection Unit (SHIPU), which is part of the court file, the relationship between the involved parties dates back to 2019.
During that year, Liu Qingshan, along with fellow investors Yan Sheng and Zhang, owner of Tian Tang Group, met at a conference organized by Chinese investors in Uganda.
At the event, Zhang persuaded Liu and Yan to explore business opportunities in Uganda, leading to the signing of a cooperation agreement on December 18, 2019.
This partnership marked the beginning of their joint investment, resulting in the establishment of a joint venture company at the Sino-Uganda Mbale Industrial Park, a growing hub for industrial activities in the country.
The group agreed to follow Ugandan regulations and officially registered their business as Automobile Group (U) Ltd.
The company had four key shareholders; Liu Qingshan, who held the largest stake at 55%, Yan Sheng with 25%, Zhang Zhigang with 15%, and Wang Kexin owning 5%.
Under their joint venture agreement, Liu Qingshan and Yan Sheng committed to a significant financial contribution of RMB 30 million (around $4.5 million), intended to cover construction, production, and the overall management of the project.
Their investment made up 85% of the company’s total equity, highlighting their central role in financing and overseeing the venture’s growth and operations in Uganda.
Meanwhile, Zhang and Wang Kexin held the remaining 15%, contributing their experience and regional connections to support the business.
Zhang also provided critical assets, including 10 acres of land at the Sino-Uganda Mbale Industrial Park, a 640-square-meter exhibition hall, and a 2,700-square-meter workshop and apartment at the Namanve Industrial Park.
Zhang also offered a three-year rent-free period starting in 2019, which contributed to his 15% stake in the company.
According to the joint venture agreement, any party could terminate the partnership if a member failed to meet their obligations, breached the terms, or violated the law.
As the venture progressed, tensions grew when Liu Qingshan began to feel unfairly treated by Zhang. In response, Liu slowed down the development of the factories, further straining relations between the shareholders.
This business conflict intensified, making it impossible for them to continue operating under the original agreement, leading to the current dispute.
On July 1, 2023, the matter was brought before Uganda’s State House Investors Protection Unit (SHIPU) for resolution. SHIPU organized multiple meetings and reviewed several proposals aimed at resolving the conflict peacefully.
Zhang suggested conducting a special audit to evaluate the current value of the company before it is dissolved, so he could receive the monetary equivalent of his 15% share in the business.
Liu Qingshan, on the other hand, proposed cutting all business ties with Zhang. He called for an independent audit, ensuring that each shareholder would be responsible for sharing the company’s losses.
He also requested a proper calculation of rent for the Namanve property up until October 16, 2024, with deductions made for any improvements done on the property.
Both parties agreed to appoint JNN Associates to carry out a comprehensive audit of the company, evaluating its state from the time it was founded up to the signing of the mediation agreement using international accounting standards.
During the auditing process, it was agreed that the company’s operations would remain unchanged until the dispute was fully resolved.
Furthermore, all parties agreed to refrain from violence, with a clear understanding that any acts of violence would be handled under Uganda’s criminal laws.
In the meantime, Liu Qingshan made a separate agreement with the Ugandan government, allowing him to partner with NEC under the business name “NEC WATU.” As part of this arrangement, he was allocated land in Jinja to continue his investments.
On August 27, 2024, Lucy Zhang and Owen Jin, the CEO, and manager at Tian Tang Group, raised concerns with the SHIPU about Liu Qingshan still occupying their showroom and premises in Namanve Industrial Park. According to them, the time he had requested to use the space had already expired.
They expressed their strong desire to remove Liu from the premises but were advised not to resort to violence or take matters into their own hands. Instead, they were encouraged to resolve the issue legally by filing a case in court.
However, on the night of September 17, 2024, a group of Chinese individuals, allegedly accompanied by army officers, reportedly attacked Liu Qingshan and his family at their Namanve premises.
They were severely assaulted and had to be admitted to Nakasero Hospital for treatment.
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