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Gulu Investor Loses UGX 500 Million To Fraudsters

An businessman of Indian origin is crying foul after losing more than 500 million shillings in investment funds to fraudsters in Gulu district.
An businessman of Indian origin is crying foul after losing more than 500 million shillings in investment funds to fraudsters in Gulu district.

Patel Jitendra says he went into partnership with two businessmen, Stephen Komakech and another he only identified as David in 2013 to manufacture compound slabs among other building materials.

Patel says shortly after commissioning his factory, his business partners conspired to defraud him of his equipment worth 500 million shillings. He says he lost equipment that includes solar panels, heavy earth machines for making compound slabs and concrete bricks  among others.

He says Komakech tricked him into buying 100 acres of land in Nwoya District in Komakech's name saying foreigners are not allowed to purchase land in Uganda. He says shortly after commissioning his factory in Pece Division in Gulu Municipality, court bailiffs stormed his factory accusing him of defaulting on rent worth more than 20 million shillings.

He says the factory was set up on a property owned by one, David. “The factory was closed down by the bailiffs who threatened to have me arrested,” Patel told Pece Division LC3 Chairperson Kelly Komakech on Monday.

He said he was forced to flee Gulu due to threats to his life. On Monday, the Indian returned with 11 million shillings to secure his equipment.

Kelly Komakech, the Pece Division chairperson says Police in the Division are investigating circumstances under which the Indian investor lost his business to the two Ugandans.

Komakech then led a team of detectives to search the business premises where they recovered several machines that Patel claimed belonged to him.

Uganda Radio Network contacted Stephen Komakech on phone for comment. He confirmed working with Patel saying their partnership had been dissolved in accordance to civil laws regulating trade in Uganda.

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