Liu Qingshan, 63, and Lu Hanbin, 32, the owners of the Ugandan NEC-WATU Automobile Group United Company, a joint venture with UPDF’s private company NEC were attacked in the wee hours of Wednesday morning.
In what appears to be investor wars, two Chinese investors were reportedly attacked in the wee hours of Wednesday morning, September 18, 2024 at their rented apartment in Namanve Industrial park located 10kms East of Kampala, the capital and largest city of Uganda.
They have been identified as Liu Qingshan, 63, and Lu Hanbin, 32, the owners of the Ugandan NEC-WATU Automobile Group United Company, a joint venture with UPDF’s private company NEC. The company specializes in automobile vehicles, filters and air cleaners.
The attack reportedly happened in the morning at 5:00 am. Ironically, the attackers are suspected to be fellow Chinese who were in company of armed men likely belonging to UPDF.
Preliminary information obtained by this publication indicates that Seven Chinese citizens led by one Martin attacked, beat and robbed Qingshan, Hanbin.
The victims were targeted while they slept, with attackers destroying doors and windows to gain entry. They were severely beaten and left for dead. Two mobile phones, a desktop computer and a laptop computer were stolen.
The attackers reportedly fled in five vehicles, one of which had the license plate number UBF 588F and was a white Prado. Police were alerted but only arrived after the attackers had fled the scene.
A case of assault was registered at Namanve police station with SD number 03/18/09/24. The victims were rushed to Nakasero hospital where they are nursing head, back and leg injuries.
Investigations further show that the attackers fled taking the direction of Mbale and in particular were suspected of traveling to Mbale Industrial Park managed by Tian Tang Group.
Their vehicle was last seen on the Jinja Bridge camera at 0140 hours, escorted by two unidentified personnel from UPDF 3Div, armed with 02 submachine guns.
Qingshan accuses Tian Tang boss, Zhang Zhi Gang, of suffocating the investment. He says Tian Tang only contributed land as equity in NEC WATU Automobile but did not provide the land title.
“In fact, it is clear to any discerning person that this move is ultimately aimed at taking over our company because there is no evidence proving that the factory belongs to us, and they can expel us at any time,” says Qingshan.
“How can the government of Uganda give free land to Tian Tang to manage investors and the same company sells off land at a whooping USD 40,000 per acre!” a visibly angry Qingshan wondered.
“And then on top of that,” continues Qingshan, “government goes ahead to connect power and road infrastructure and when we complain of unfairness Tian Tang drags us to court! Where is the government?” questions Qingshan.
To drive this point home, NEC-Watu Automobile Company owner Liu Qingshan who is now on the verge of losing the USD6M investment allocated 15% shares to Tian Tang before he could do any meaningful business in Uganda.
In turn, Tian Tang offered 10 acres of land in Mbale Industrial Park and warehouses at Namanve Industrial park. Tian Tang bosses argue that the warehouses were provided to NEC-WATU for only a period of three years which has elapsed. They now want to repossess them.
Tian Tang has since dragged Qingshan to Mukono magistrate court demanding sh20m for reportedly violating the terms of their shareholding.
“… Zhang ‘controls’ the government! He is given land at USD 245 per acre, he sells it at USD 40,000! Is the government serious?”NEC Watu Automobile reportedly employs close to 200 workers.“Under such difficult conditions, we have already installed 120 units. In the future, if this project is fully completed, it will achieve an annual production capacity of 3,000 to 4,000 vehicles, basically meeting Uganda’s market demand and creating employment opportunities for thousands of people. I want the President to know. If he doesn’t help, I will close and go to Rwanda or Kenya,” he says.
They manufacture FAW (heavy truck) and JMC (pickup). Was the Wednesday morning attack motivated by the victims’ fallout with Tian Tang? This is a story for another day.
Stockings factories told me they could sell stockings for just sh2000, but because of the rent and land costs from Tian Tang Group, they are forced to sell them for sh4000. This is making them less competitive in the market.”
The whistleblower further adds that many Chinese operators in the industrial park are struggling, and some have already gone bankrupt and left Uganda.
“They force us to only tell good stories, never the truth! I believe in God, Sir, and I can’t keep lying for the Chinese!”
Tian Tang Group has also reportedly blocked all the efforts by the real Chinese investors to meet President Museveni to express the difficulties they face. “I am very sure that some corrupt officers [in UPDF] are working with Tian Tang because I have heard with my ears that they charge new real Chinese investors to meet ministers!”
It is further alleged that the Tian Tang bosses have significant power and connections with many officials in the government, from the local level up.
“They [Tian Tang bosses] are in cahoots with corrupt officials, selling off our land for profit. It’s alarming how, during visits, they often wear masks and cover their car number plates, making it nearly impossible to identify them. But I recognize some of these individuals are from the Uganda Investment Authority.”
It has further been alleged that Tian Tang bosses are busy repatriating large sums of money from the industrial park land sales back to their country “through the black market”. And to keep the industrial park running, they have allegedly also borrowed heavily from Ugandan banks.“What if the owners escape and never come back, who will return those loans?”
There are whispers that a recent serious fire incident at one of the factories may not have been an accident but rather an act of arson by insiders!
The Mbale Industrial Park encompasses the production of a wide range of goods, including glass, fabrics, household detergents, mobile phones, smart televisions, baby diapers, garments, LED bulbs, tubes, energy meters, and stockings.
Tian Tang Group and UIA have been contacted for a comment.
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