The tenants are seeking an interim order restraining UIA from subleasing the industrial park Land to Mbarara Gatsby Club, a consortium of small-scale entrepreneurs in Mbarara City.
The Court Document
The Mbarara
Gatsby Industrial Park Tenants have rushed to High Court seeking a Judicial
review on how Uganda Investments Authority-UIA leased out the Industrial Park
Land.
They are also seeking an interim order restraining UIA from subleasing the industrial
park Land to Mbarara Gatsby Club, a consortium of small-scale entrepreneurs in Mbarara City. The
land in question measures 13 acres.
The eight tenants are Millionstars Health Products Limited, Whitesky 256-SMC
limited, Bold Energy Limited, Premium Paints and Chemical Products Limited,
Esperenza Distributors limited, Active Living Uganda Limited, Bontao (U)
limited, and Agribusiness and Real Estate Investments.
Last year, the UIA Director-General Robert Mukiiza handed over the industrial
park to Mbarara Gatsby Small Scale Enterprise Association Limited.
The tenants have since refused to pay rent of 120,000 Shillings and outfield maintenance fee of 70,000 Shillings per month.
Through
their lawyer David Kamukama, Mbarara Gatsby Industrial Park Tenants argue that
they are sitting tenants on the land for more than 10 years and should be given
priority to sublease and lease the land.
They also
say that the Mbarara Gatsby Small Scale Enterprises Association has issued
letters threatening to evict them from the land.
They also
argue that being manufacturers and having industrial production machinery
producing different products the park should not give away to non-manufacturers/industrialists.
Charles
Lwanga Malingu, the Secretary of Mbarara Gatsby Small Scale Enterprise
Association Limited says the company bought the land at 77 Million Shillings
after acquiring a loan from the East African Development Bank.
However, when they failed to clear the debt, the Uganda Investment Authority
intervened and cleared the debt.
The petition was filed before the Deputy Registrar of Mbarara High Court Samuel
Twakyire. He said that case will be allocated to Justice Joyce Kavuma the Resident
Judge Mbarara High Court. He adds that they are yet to find a day when
the petition will be heard.