Businessman Mohammed Mohammed Hamid is set to lose his multibillion Hotel- Pearl of Africa- located on Nakasero Hill in Kampala.
A sale by public auction notice has been placed in the newspaper on Monday by government court bailiffs, Amstrong Limited.
The businessman popularly known as AYA acquired a loan of shs 611 billion from a South African company, Industrial Development Corporation in 2007 which until today he has not been serviced.
“Upon instructions from the High Court of Uganda (Commercial Division) in Execution Misc. Application No. 275 of 2023 (arising from Arbitration Cause No. 12 of 2021 and High Court Misc. Cause No. SE1 of 2021), Industrial Development Corporation of South Africa Ltd (Judgment Creditor) vs AYA Investments (U) Limited (Judgment Debtor), and M/S MMAKS Advocates and ENS africa Advocates. Counsel for the Judgment Creditor, we shall proceed to sell the Property below together with all developments thereon by public auction pursuant to a Warrant of Attachment and Sale issued by the High Court of Uganda (Commercial Division) unless the Judgment Debtor pays to us the entire outstanding decretal sum (including interest) and our fees and costs before the fall of the hammer at the auction,” reads a notice in the newspaper.
The Property comprises a 5 Star Hotel which was formerly identified as Pearl of Africa is situated at an altitude of 1240 metres above mean sea level making it one of the highest points with a 360 degrees view of Kampala City.
The Hotel spans 32,000 square meters and comprises 23 floors, 296 rooms, 37 suites, 2 restaurants, 3 bars, 9 meeting rooms, 15th floor executive lounges and a business center with all top class 5 star amenities.
On August 8, 2023 AYA wrote to Chief Justice Alfonse Chigamoy Owiny-Dollo imploring him to save the sale of the property after High Court issued a ruling approving the sale of the hotel.
Big Story: With no Hope left AYA runs to Chief Justice to Save his Empire over Shs.611b debt
In 2021, the Industrial Development Corporation of South Africa Ltd attempted to seize the hotel Pearl 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.