Russian company contracted to install digital tracking systems in Uganda’s vehicles on the Verge of closure due to bankruptcy.
Classified court documents have revealed that a Russian company Joint Stock Company Global Security awarded a 10-year contract to install digital monitoring system in all motorcycles and vehicles in the country is facing bankruptcy litigation in Moscow.
Court documents show that the company is also facing other debt-related cases filed between 2019 and 2021 in Russia raising questions of whether the contract in Uganda is a lifeline the company needs to beat off bankruptcy litigation for its very survival, and whether government of Uganda did adequate due diligence before engaging Global Security.
Ugandan Government and Joint Stock Company Global Security inked an agreement this week, with permanent secretaries for ministry of Works Mr. Bageya Waiswa and ministry for Presidency Mr. Yunus Kakande signing on behalf on the country’s behalf while Security minister, Gen Jim Muhwezi witnessed the signing.
According to Court Documents, Joint Stock Company Global Security was sued by LLC “Rus Prom-Technologies” another Russian company that wants it declared bankrupt.The case was filed in the Arbitration Court of City of Moscow on September 17th 2020 and accepted on October 20th 2020.
On September 17, 2020, the Moscow Arbitration Court received an application from Rus-Prom-Technology on the recognition as insolvent (bankrupt) of JSC Global Security.
Though the case was accepted for hearing, the hearing sessions have been postponed several times as Global Security fight to pay the debt it owes Rus-Prom-Technology.In another case filed in March 2019, Rus-Prom-Technology had sued Global Security for failure to pay 16.6 million rubles (Russia currency) — about 220,000 US Dollars.
Court in March further directed Global Security to produce evidence of debt repayment during the next court session scheduled for September 3rd 2021. Global Security is facing other debt litigation in Russia.
Ministry of Works permanent secretary Bageya Waiswa was on Sunday quoted by Uganda Radio Network denying knowledge of firm’s trouble. He said information about the company facing bankruptcy litigation in Russia is news to him.
“That is news to me. But we have our Financial Intelligence Authority, we can give them such information, and they look into it. They have the network world over to probe such things,” he said. “But me, I have no comment because I am hearing it for the first time”, Mr. Waiswa was quoteod as saying.