The Chief Magistrates Court in Mukono has released on bail four Tian Tang group managers remanded last week on accusations of attempted murder.
Suspects include Liang Kai, Bin Ding, Chen Cheng and Wu Zhang alias Martin.
They were remanded to Kauga Prison last week and later transferred to Luzira Prison for violently attacking two fellow Chinese investors in their apartment at Namanve Industrial Park on September 18, 2024 and causing them serious injuries after business fallout.
The attack was allegedly carried out by seven Chinese nationals backed by armed individuals possibly linked to the Uganda People’s Defence Forces (UPDF) at around 5:00 AM.
The victims are Liu Qingshan (63) and Lu Hanbin (32), who owns the Ugandan NEC-WATU Automobile Group.
Today, the Chief Magistrate Roselyn Nsenge has granted them a cash bail of Shillings 10 million each and their sureties conditioned to pay noncash bail of Shillings 100 million each. Each suspect has had four sureties including local leaders-LCI chairpersons, business people and Members of Parliament.
Nsenge has noted that the constitution of Uganda grants bail application, a right incurred on a basis of presumption of innocence.
“The accused persons are presumed innocent until proven guilty, however, it should be noted that the grant of bail is not automatic. Looking at the sureties presented to this court, I am convinced that you will not abscond from court.” Nsenge noted before granting the bail.
She asked the prosecution to appeal against her decision if they find it not lenient before adjourning the matter to October 31, 2024.
Background
According to the report compiled by the State House Investors Protection Unit (SHIPU) attached to the file before court, back in 2019, Liu Qinshang, along with fellow investors Yan Sheng and Zhang, who owns Tian Tang Group met in a conference organised by Chinese investors in Uganda.
During this event, Zhang convinced Liu and Yan to explore business opportunities in Uganda and eventually signed a cooperation agreement on December 18, 2019, marking the beginning of their joint investment in the country.
They established a joint venture company based at the Sino-Uganda Mbale Industrial Park, a growing hub for industrial activity in the country.
They agreed to comply with Ugandan regulations and formally incorporated the business as Automobile Group (U) Ltd. The company had four key shareholders: Liu Qingshan, who owned the largest share at 55%, Yan Sheng with 25%, Zhang Zhigang with 15%, and Wang Kexin holding 5%.
As part of the joint venture agreement, Liu Qingshan and Yan Sheng were responsible for making a significant financial contribution of RMB 30 million (around $4.5 million), which was meant to cover the costs of construction, production, and the overall management of the project.
Their combined investment represented 85% of the company’s total equity, noting their primary role in financing and overseeing the venture’s growth and operations in Uganda.
Zhang and Wang Kexin held the remaining 15% between them, supporting the business with their experience and connections in the region.
Zhang contributed valuable assets to the joint venture, including 10 acres of land in the Sino Mbale Industrial Park, a 640-square-meter exhibition hall, and a 2,700-square-meter workshop and apartment in the Namanve Industrial Park.
He also offered a three-year rent-free period starting in 2019. These contributions accounted for his 15% share in the company.
The joint venture agreement allowed the parties to terminate their partnership if any member failed to meet their obligations, violated any terms of the agreement, or disregarded the law.
After the joint venture got underway, Liu Qingshan began to feel he was being treated unfairly by Zhang. As a result, Liu slowed down the development of the factories, which led to tensions among the shareholders.
This business conflict eventually escalated to the point where they could no longer operate together under the terms of the agreement, leading to the current dispute.
On July 1, 2023, the issue was taken to Uganda’s State House Investors Protection Unit for resolution. The unit held several meetings and recorded various proposals to help settle the matter amicably.
Zhang suggested conducting a special audit to evaluate the current value of the company before it is dissolved, so he could receive the monetary equivalent of his 15% share in the business.
Liu Qingshan, on the other hand, proposed cutting all business ties with Zhang. He called for an independent audit, ensuring that each shareholder would be responsible for sharing the company’s losses.
He also requested a proper calculation of rent for the Namanve property up until October 16, 2024, with deductions made for any improvements done on the property.
Both parties agreed to appoint JNN Associates to carry out a comprehensive audit of the company, evaluating its state from the time it was founded up to the signing of the mediation agreement using international accounting standards.
During the auditing process, it was agreed that the company’s operations would remain unchanged until the dispute was fully resolved.
Furthermore, all parties agreed to refrain from violence, with a clear understanding that any acts of violence would be handled under Uganda’s criminal laws.
In the meantime, Liu Qingshan made a separate agreement with the Ugandan government, allowing him to partner with NEC under the business name “NEC WATU.” As part of this arrangement, he was allocated land in Jinja to continue his investments.
On August 27, 2024, Lucy Zhang and Owen Jin, the CEO, and manager at Tian Tang Group, raised concerns with the SHIPU about Liu Qingshan still occupying their showroom and premises in Namanve Industrial Park. According to them, the time he had requested to use the space had already expired.
They expressed their strong desire to remove Liu from the premises but were advised not to resort to violence or take matters into their own hands. Instead, they were encouraged to resolve the issue legally by filing a case in court.
However, on the night of September 17, 2024, a group of Chinese individuals, allegedly accompanied by army officers, reportedly attacked Liu Qingshan and his family at their Namanve premises.
They were severely assaulted and had to be admitted to Nakasero Hospital for treatment.