The Court of Appeal has issued a directive for businessman Patrick Bitature and his spouse, Carol Nzaro Bitature, to face trial on charges of fraud linked to a loan obtained from South African entity Vantage Mezzanine Fund.
Rejecting the businessman’s application on February 2, Justice Hellen Obura, presiding as a sole judge, deemed the application incompetent. Justice Obura pointed out that the Bitatures’ plea had been rendered obsolete by subsequent developments, leaving no grounds for intervention.
“Even if I had found the application to be complete,” remarked Justice Obura, “I would still dismiss it for two reasons. Firstly, this application has been rendered obsolete by subsequent events, as evidenced by the applicant’s supplementary affidavit supporting the application, which indicates that the sought-after order to halt proceedings has already been implemented by the Chief Magistrate when she authorized the charge sheet and associated documents within five business days from the date of the decision.”
She added, “Consequently, the order has already been executed, and there exists no other High Court order regarding this matter that could warrant an order to halt proceedings. I find this application incompetent, both in terms of the notice of appeal and the substantive application from which it stems.”
The Bitatures face fraud allegations in a private criminal prosecution that has been transferred to the Director of Public Prosecutions (DPP) office.
The legal saga dates back to March 31, 2021, when attorney Robert Kirunda, representing Vantage Mezzanine Fund, filed a miscellaneous application to initiate private prosecution proceedings and institute fraud charges against the Bitatures.
On June 27, 2022, the trial magistrate at Buganda Road Chief Magistrates’ Court dismissed the application due to the local chief’s lack of awareness regarding the charges against the Bitatures.
Subsequently, Kirunda sought a revision in the High Court in Kampala, leading to the reversal of the Chief Magistrate’s decision and the return of the case file to Buganda Road Court. The High Court instructed the magistrate to sanction a charge sheet against the Bitatures within five working days, a directive fulfilled on January 22, 2024.
Meanwhile, the DPP successfully petitioned Buganda Road Court to assume jurisdiction over the case.
It is alleged that on or about December 11, 2014, at Diamond Trust Building along Kampala Road, Simba Properties Investment, owned by Bitature and his wife, borrowed approximately Shs360 billion from Vantage Mezzanine Fund under a written agreement.
The Bitatures allegedly altered the shareholding of Simba Companies, where they were shareholders, with the purported intent to defraud the South African company and other creditors. These actions are said to contravene Section 323 of the Penal Code, constituting fraud under Section 323 and issuing false annual returns under Section 309.
“The suspects conducted themselves with malice aforethought and with intent to defraud both the complainants and the public,” the court documents state.
Following the alleged misconduct, the South African company initiated private prosecution, later transferred to the DPP’s office in accordance with constitutional provisions.
