A bitter dispute over the late Dr James Musinguzi Garuga's empire has erupted, with accusations that his widow Peace Kesiime Bagorogoza, lawyer Agaba Maguru, and Henry Hapa Nganwa are using President Museveni's name to escape accountability over Incafex Company Ltd properties. The conflict centers on claims that company assets were sold off despite a Supreme Court judgment.

Mathew Rukiikaire, who claims to own 45% of Incafex Ltd and Garuga Properties, approached President Museveni, alleging that after Dr Garuga's death, there was a systematic push to offload company property without board approval. Rukiikaire reminded Museveni of a 2017 Supreme Court ruling confirming his 45% shareholding and ordering a special audit to settle the ownership structure.

President Museveni reportedly agreed to Rukiikaire's request, instructing the Attorney General and the Lands Minister to compensate him for his claimed share, with the balance held in court. This decision allegedly infuriated Bagorogoza, Maguru, and their camp, who launched social media attacks on the President. Sources suggest their anger stems from expected financial benefits they claim were supposed to flow through accounts they control.

Questions surround an earlier Shs800 million partial payment released by the government to help Dr Garuga seek specialized treatment abroad. The money was processed under payment reference No. 21418514 and was meant for Garuga Cooperative Ltd's Bank of Africa account but allegedly landed in Garuga Properties Ltd's account, where Maguru was a signatory.

After Dr Garuga's death, property fights intensified, with Maguru accused of installing himself as director in Garuga Properties Ltd, Incafex Ltd, and Kinkiizi Development Company Ltd without board consent. The Registrar of Companies struck him off after Rukiikaire petitioned URSB, claiming the appointments relied on forged papers.

Despite a Supreme Court interim injunction barring Incafex and its agents from selling or mortgaging vast ranches and estates, the trio is accused of pushing through deals, including the alleged sale of 2,000 acres in Ngoma, Nakaseke, and 849 hectares on Block 1004, Plot 2 in Bulemezi.

Legal observers insist Museveni's intervention was a rescue mission for a shareholder already vindicated by the Supreme Court, and that Bagorogoza and her associates cannot use the President as a shield for their alleged legal troubles. The dispute involves allegations of misuse of funds from three companies controlling over 25 factories and more than 3,600 land titles.

Key points

  • President Museveni intervenes in Garuga Estate dispute
  • Accusations fly as widow and associates allegedly use President as human shield
  • Dispute centers on Incafex Company Ltd properties and 2017 Supreme Court ruling

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SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.