Panicking City Tycoon Aya Runs To Chief Justice To Save His Billion Hotel

City Businessman Mohammed Muhammed Hamid, commonly known as Aya has rushed to Chief Justice of Uganda, Justice Alfonse Owiny Dollo to save his multi billion hotel from being sold to clear  his billion debts.

According to information we have fully gathered, Aya is on the verge of losing his Pearl of Africa Hotel to a South African company called Industrial Development Corporation for failure to pay his debt worth over 611 billion shillings. Recently, Court of Appeal ruled that Aya should pay the debt to South African company.

In 2021, the Industrial Development Corporation of South Africa Ltd attempted to seize the hotel Pear of Africa to recover a debt of $118 million but the court interjected.

AYA acquired a loan of $67 million from IDC which has since accumulated to $150 million with interest for 16 years of non-payment.

The money was part of the financing contract signed between AYA and the South African entity to finance the construction of the hotel in 2007

AYA says the corporation made it hard for them because it would delay the availability of the money, which delayed the project completion.

On August 8, 2023 AYA wrote to Secretary to the Judiciary requesting him to expedite his meeting with the Chief Justice to help him get justice.

According to Aya, IDC from the onset breached its obligations under the Financial Credit Agreements.
IDC always hired wrong lawyers (opposition lawyers) who do not wish good development for this country to the extent that we had to involve the President who spoke to President Zuma of South Africa advising him to get reasonable, politically, and economically friendly lawyers.
Due to the reasons above and others, IDC’s defaulted on its obligations which caused a delay in the completion of the project for a period of 88 months (7 years and 3 months) as per the report compiled by CPA Prof. Samuel Sejjaaka based on the findings of Ernest and Young. This is clearly in our claim at the High Court Commercial Division vide Civil Suit 937 of 2017.
The delay complained of caused Aya cost overruns (additional equity introduced by Aya) to the tune of USD 39,771,659, loss of revenue from nonoperation of the hotel to the tune of USD 181,605,588. The total claim of Aya against IDC as of December 2017 was USD 221,377,247.
IDC claims that it disbursed USD 150,000,000 to Aya which is wrong and unfair as per the record. The only money received was USD 67,000,000.
When IDC tried to illegally foreclose the hotel, Aya was constrained to file on 22nd November 2017, High Court (Commercial Division) Civil Suit No. 937 of 2017 vide Aya Investments (U) Ltd v. Industrial Development Corporation of South Africa as all the security documents were governed by Ugandan law. This plaint in that suit contains 228 averments which clearly highlight the default on the part of IDC and the serious points of law in support of Aya’s claim. Aya asked IDC to go for Arbitration as per the clause of the financial credit agreement. IDC refused to go for the arbitration and therefore Aya to protect its interest filed HCCS 937 of 2017. IDC filed a Written statement of Defence. Aya filed its rejoinder. IDC conceded to the jurisdiction of the Ugandan Court and lost its right to go for arbitration again.
Despite the pendency of the said HCCS No. 937 of 2017, IDC illegally and in contempt of an Order of the Court of Appeal of Uganda issued by The Deputy Chief Justice, Alfonse Owiny-Dollo (as he then was) in Civil Application No. 57 of 2019, IDC illegally commenced arbitration at the Arbitration Foundation of South Africa (AFSA). As such, IDC illegally obtained an ex-party arbitral award against Aya. IDC 3 years after, during Covid period, continued with the arbitration ex parte in South Africa. The arbitration was done by AFSA which is a partner of IDC. Further the lawyers, ENS Africa, the appointed lawyers of IDC are the founding members of AFSA. They got the award in their favour.

Aya filed an application for leave to appeal before Mubiru Stephen who dismissed the application for leave to appeal like everything put in front of him.

The award was brought to Uganda for recognition during the time I had lost my son, by use of manipulation and abuse of the court system.

The award was sadly recognised and registered as a court decree by Justice Mubiru, despite all the above facts including the contempt of a Court of Appeal Order staying arbitration.

Aya has filed applications in Court of Appeal seeking leave to appeal (Mis. App 271 of 2023) and has now been forced to file applications seeking stay of execution since IDC has filed an application for execution of the award. We have also written to the Deputy Chief Justice seeking a date for hearing of our application for stay of execution. We ask that you help us get this date immediately and the deadline is within a few days to come. If this stay of execution is not issued, Aya will lose USD 452,000,000. For easy of reference, please find attached the following documents (a) Court of appeal order restraining any litigation or arbitration between Aya and IDC issued by the now chief justice on 19th March, 2019. (b) Letter from Aya’s Lawyer requesting for a date to get the stay of execution at Court of Appeal. (c) Court Documents filed at the Court of Appeal namely, Interim Stay of execution application, Stay of Execution application, leave to Appeal application and the Draft Memorandum of Appeal. We are available for any further information you may require from us at any point of time. Thank you for your cooperation and understanding to enable us in getting justice and work to help to develop Uganda together.

Yours faithfully, Mohammed Mohammed Hamid