In a shocking escalation of investor tensions, two Chinese investors were brutally attacked in their apartment located at Namanve Industrial Park, Uganda, in the early hours of Wednesday, September 18, 2024. The victims, Liu Qingshan (63) and Lu Hanbin (32), both owners of the Ugandan NEC-WATU Automobile Group, were left severely injured in an incident that appears to stem from rising tensions over business disputes.
The attack, reportedly executed by seven Chinese nationals allegedly supported by armed men possibly linked to the Uganda People’s Defence Forces (UPDF), occurred at 5:00 AM. The attackers broke into the apartment by destroying doors and windows, beat the victims, and robbed them of electronic devices, including two mobile phones, a desktop computer, and a laptop. The suspects, led by a man identified only as Martin, fled in a convoy of five vehicles, including a white Prado with the license plate UBF 588F. Police arrived at the scene after the assailants had fled, and a case of assault was registered at Namanve Police Station.
Qingshan and Hanbin were rushed to Nakasero Hospital, where they are being treated for head, back, and leg injuries. Preliminary investigations suggest that the attackers fled in the direction of Mbale, with one vehicle spotted on the Jinja Bridge camera system at 01:40 AM. The group was reportedly escorted by two armed personnel from the UPDF’s 3rd Division.
Escalating Business Dispute
The violent attack comes just hours after Qingshan and Hanbin publicly released a statement accusing Tian Tang Group, a fellow Chinese business entity managing Mbale Industrial Park, of orchestrating their eviction from the industrial park.
NEC-WATU Automobile, a joint venture with the UPDF’s private company NEC, specializes in manufacturing automobile filters and air cleaners. The company has been caught in an escalating conflict with Tian Tang Group, which holds a 15% stake in NEC-WATU and reportedly controls the land on which the company operates.
Qingshan has expressed frustration, claiming that Tian Tang Group has deliberately undermined their business, withholding critical documentation such as land titles and leveraging their position to evict NEC-WATU from its facilities. “This move is ultimately aimed at taking over our company,” Qingshan stated. “We have invested USD 6 million into this venture, but without the necessary documentation proving our ownership, they can expel us at any time.”
The eviction threat has forced NEC-WATU to consider drastic measures, with Qingshan warning that if the harassment continues, they may be compelled to shut down their operations and move to neighboring Rwanda or Kenya. Such a move would be a significant blow to Uganda’s industrial sector, as NEC-WATU currently employs close to 200 workers and has already installed 120 units of FAW heavy trucks and JMC pickups, meeting Uganda’s automotive needs.
A Broader Pattern of Alleged Corruption
The attack on Qingshan and Hanbin is emblematic of a broader issue at Mbale Industrial Park, where several Chinese investors have raised alarms about alleged corrupt practices by Tian Tang Group.
According to a whistleblower report, Tian Tang secured 600 acres of land in Mbale on a 49-year lease from the Government of Uganda, paying as little as $5 per year for the property. However, it is alleged that Tian Tang has been reselling this land to fellow investors at exorbitant rates, ranging from USD 40,000 to USD 200,000 per acre.
The whistleblower further claims that Tian Tang is using its influence within the Uganda Investment Authority (UIA) and other government agencies to monopolize land deals, forcing new investors to give up shares in their businesses in exchange for access to land. Additionally, Tian Tang is accused of renting out empty warehouses to investors for USD 5 per square meter each month, creating an inflated cost structure that makes it difficult for businesses to thrive.
The whistleblower report highlights how these practices are driving up the cost of goods produced in Mbale Industrial Park, making Ugandan-manufactured products less competitive. Factories are reportedly struggling to recover from the high land and rental costs, leading to a series of bankruptcies among Chinese investors.
Despite these challenges, whistleblowers allege that Tian Tang Group has continued to repatriate large sums of money out of Uganda through the black market while maintaining a façade of success.
Government Intervention Needed
In light of these developments, Qingshan has called on President Yoweri Museveni to intervene, urging the Ugandan government to protect genuine investors who are contributing to the country’s economic growth. “If the President doesn’t help, I will close and go to Rwanda or Kenya,” Qingshan said, expressing his frustration over the lack of support for his business.
With allegations of corruption involving both local and Chinese officials, the future of Mbale Industrial Park—and Uganda’s broader industrialization agenda—hangs in the balance. If left unchecked, the situation threatens to undermine investor confidence and derail efforts to position Uganda as a hub for manufacturing and industrial development in East Africa.