In one of Uganda’s most drawn-out corporate battles, Standard Chartered Bank (SCB) finds itself at the center of a legal storm over a staggering Sh5.3 billion in unpaid storage charges — a saga now stretching into its fourth year with no clear resolution in sight.
The dispute traces back to January 2021, when SCB, through its legal representatives at Ligomarc Advocates, vacated assets belonging to the Three Ways Group of Companies (in receivership) from a plot at Namanve Industrial Park. The assets — 96 trucks, 17 containers, and numerous loose items — were relocated to Liberty ICD Limited, a secure storage facility roughly two kilometers away.
Following professional negotiations, Liberty ICD agreed to host the massive inventory at discounted storage rates, approved directly by SCB. StandChart even paid Sh15 million to Inter Mech Enterprises Limited for the logistical move. Ligomarc Advocates retained control of the container locks, truck keys, and logbooks, further cementing SCB’s responsibility over the items in line with established principles of contractual good faith.
However, what seemed like a straightforward agreement quickly unraveled into a web of shifting blame. Initially, SCB argued that the Three Ways Group should foot the storage bill — an argument undermined by the group’s insolvency and absence from legal proceedings. When that failed, SCB pointed fingers at the Uganda Revenue Authority (URA), claiming the agency had assumed responsibility following distress warrants against Three Ways.
Court documents tell a different story. URA neither moved the assets nor secured them, and the items remained firmly under Liberty ICD’s protection, backed by enhanced security measures.
Seeking justice, Liberty ICD, represented initially by Advocate Dennis Nyombi, sued Ligomarc Advocates, curiously excluding StandChart. Later, K and K Advocates questioned this odd legal strategy, leading to a successful application to add the bank as a co-defendant — a pivotal ruling by Justice Florence Nakachwa Dollo.
A court-ordered site visit in December 2024 vividly illustrated the scale of the occupation: 2.5 acres of prime industrial land tied up with no return for Liberty ICD. Meanwhile, SCB’s partial payment for three months’ storage signaled its acknowledgment of the debt, further weakening its defense.
Despite the mounting evidence, SCB continued its delay tactics, maneuvering to add Three Ways Group and URA to the case. But both resisted: Three Ways argued its matters were already before the Commercial Court, while URA firmly denied any liability.
At the heart of the case lies a simple contractual principle: SCB entered a storage agreement, benefited from Liberty ICD’s services, and has so far avoided full payment. Legal experts draw parallels to landmark rulings such as James Ssebagala vs China Palace Ltd and Stockloser v Johnson, emphasizing the importance of good faith and ethical conduct in contractual relations.
Liberty ICD is now seeking Sh5.3 billion in accrued storage charges and an additional Sh4 billion in damages for loss of income. Their claim highlights how the prolonged occupation of their land denied them opportunities to develop rental warehouses and generate significant revenue.
The case has become a litmus test for corporate accountability in Uganda’s financial sector. Standard Chartered Bank, one of the country’s wealthiest financial institutions, stands accused of manipulating the legal system to sidestep clear obligations — an allegation that could have long-term reputational consequences.
As the legal battles intensify across the High Court and Commercial Court, one thing is certain: in this high-stakes fight for billions, the clock is ticking, and patience is running thin.
