Peace Kesiime Bagorogoza, the widow of late businessman Dr James Musinguzi Garuga, and city lawyer Agaba Maguru, alias Musigi, are facing accusations of attempting to blame President Museveni for their legal troubles. These troubles arose from fraudulent transactions involving properties belonging to Incafex Company Ltd. The accusations claim that the duo, along with Henry Hapa Nganwa, were involved in the fraudulent sale and transfer of company properties, contravening a Supreme Court ruling.
The controversy began when President Museveni moved to protect the interests of shareholders and prevent the disposal of the late Garuga's estate. According to information presented to Museveni, extensive land holdings and ranches belonging to companies associated with the late Garuga were being disposed of by Bagorogoza, Maguru, Nganwa, and retired Captain Charles Byaruhanga. This led to Museveni directing the government to compensate Hon Mathew Rukiikaire, a shareholder in Incafex Ltd and Garuga Properties, for his 45 percent interest in two remaining ranches.
Rukiikaire reminded Museveni that he had successfully won a shareholding dispute against Incafex U Ltd before the Supreme Court in 2017. The court confirmed his 45 percent ownership in the company and ordered a special audit to establish the company's shareholding structure. However, nearly a decade after the judgment, the company had allegedly failed to comply with the court order directing the audit of its shares.
Bagorogoza, Maguru, and their associates are unhappy with Museveni's directive to compensate Rukiikaire for his 45 percent interest in the two ranches. They had allegedly expected the compensation money to be deposited into accounts under their control. Sources claim that the group had planned to steal the money, along with the other Shs800 million part of the compensation released by the government to airlift the late businessman for specialized treatment abroad.
The compensation dispute dates back to the government's ranch restructuring exercise in the late 1990s. During this exercise, Ranch 35 in Mawogola, associated with Garuga's companies, was taken over with a commitment that the owners would be compensated. The total compensation due to the family was reportedly assessed at approximately Shs13.7 billion, but payment remained outstanding for years.
Following Dr Garuga's death, his properties have become embroiled in further disputes over fraudulent sales and transfers without board resolutions or authorization. The dispute also involves Agaba Maguru, who served as company secretary and fraudulently appointed himself a director in Garuga Properties Ltd, Incafex Ltd, and Kinkiizi Development Company Ltd without board authorization. The Registrar of Companies subsequently struck him off the list of directors after another shareholder, Hon Mathew Rukiikaire, petitioned the Uganda Registration Services Bureau.
Key points
- The accusations against Bagorogoza and Maguru involve their alleged attempts to blame President Museveni for their legal troubles arising from fraudulent transactions.
- The dispute over the Garuga estate involves the fraudulent sale and transfer of company properties, contravening a Supreme Court ruling.
- President Museveni directed the government to compensate Hon Mathew Rukiikaire for his 45 percent interest in two remaining ranches, which was allegedly expected to be deposited into accounts under the control of Bagorogoza and Maguru.
