Home » Ugandan tycoon Patrick Bitature and Absa Bank clash over $13.6-million loan

Ugandan tycoon Patrick Bitature and Absa Bank clash over $13.6-million loan

Bitature faces legal setback as courts validate judgment

by Omokolade Ajayi
Patrick Bitature

Struggling Ugandan businessman Patrick Bitature — the founder and chairman of Simba Group — finds himself entangled in a protracted legal battle with Absa Bank Uganda over a substantial loan amounting to Ush50 billion ($13.6 million). 

The legal dispute, which intensified in September, comes as the Kampala-based lender sought to recover the outstanding loan based on a prior consent judgment — contested by Bitature’s legal representatives on grounds of economic duress and procedural irregularities.

The dispute with Absa Bank Uganda traces its origins to financing provided for Bitature’s company, Electro-Maxx, in 2018, totaling $18 million, which subsequently faced repayment challenges, leading to the lawsuit.

Patrick Bitature faces legal setback as courts validate judgment

Justice Stephen Mubiru, ruling against Bitature, emphasized the legitimacy of the previous judgment — marking another setback in the businessman’s legal woes. This compounds Patrick Bitature’s three-year legal battle with South African venture capital firm Vantage Capital over a $10-million loan. 

Earlier this year, the International Chamber of Commerce Court of Arbitration in London ruled in favor of Vantage Capital, directing Bitature, his wife, and their companies to pay $65.7 million due to a breach of contract, comprising both the breach itself and compounded interest.

Despite Bitature’s efforts to challenge the judgments and claims of loan nullification due to various reasons, the courts have consistently ruled against him, emphasizing the failure to substantiate his arguments.

Unfolding legal struggles highlight financial uncertainty for Patrick Bitature

The growing number of legal disputes surrounding Bitature has raised concerns about his financial standing, particularly as his companies face liquidity challenges compounded by ongoing legal battles with various entities — including Absa Bank Uganda, and Vantage Capital.

The implications of these legal conflicts not only mark a significant challenge for Bitature personally, but also raise questions about the stability of his business ventures and their ability to navigate the mounting debt obligations. The legal tussles underscore the complexities and uncertainties surrounding Patrick Bitature’s financial situation.

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