The suspects; Liang Kai, Bin Ding, Chen Cheng, and Wu Zhang alias Martin were initially held at Kauga prison and later transferred to Luzira Prison for allegedly assaulting two fellow Chinese investors at an apartment in Namanve Industrial Park on September 18, 2024, following a business dispute.
The attack, which reportedly involved seven Chinese nationals supported by armed individuals possibly linked to the Uganda People’s Defence Forces (UPDF), occurred around 5:00 am. The victims, Liu Qingshan, 63, and Lu Hanbin, 32, owners of NEC-WATU Automobile Group, sustained serious injuries.
Chief magistrate Roselyn Nsenge granted each of the suspects a cash bail of Shs 10 million, while their sureties were ordered to execute non-cash bail of Shs 100 million each. The suspects presented four sureties each, including local leaders, businesspeople, and members of parliament. Nsenge emphasized that while bail is not automatic, it is a right based on the presumption of innocence.
Nsege said the accused persons are presumed innocent until proven guilty and she was convinced that the presented sureties will make sure that the suspects don’t. The magistrate adjourned the case to October 31, 2024.
The conflict dates back to 2019 when Liu Qingshan, Yan Sheng, and Zhang Zhigang of Tian Tang Group met during a conference organized by Chinese investors in Uganda. Zhang convinced Liu and Yan to explore business opportunities in Uganda, leading to the signing of a cooperation agreement in December 2019. They established a joint venture, Automobile Group (U) Ltd., at the Sino-Uganda Mbale Industrial Park.
Liu and Yan, who held a combined 80% stake in the venture, were responsible for the financial backbone of the project, contributing RMB 30 million (about $4.5 million) for construction and operations. Zhang Zhigang, who held a 15% stake, contributed assets including land and buildings in Namanve Industrial Park. The remaining 5% was held by Wang Kexin.
However, tensions arose when Liu felt he was being treated unfairly, leading him to slow down factory development. The shareholders’ relationship further deteriorated, and the matter was referred to the State House Investors Protection Unit (SHIPU) in July 2023.
Attempts were made to mediate the dispute, with proposals for a special audit to evaluate the company’s worth and determine Zhang’s 15 per cent share. Liu, on the other hand, sought to sever all business ties with Zhang and proposed that all shareholders be responsible for the company’s losses.
Escalation and attack
Despite mediation efforts, the situation worsened. On August 27, 2024, Lucy Zhang and Owen Jin, Tian Tang Group’s CEO and manager, respectively, expressed concerns to SHIPU about Liu’s continued occupation of their Namanve premises. They were advised to seek legal redress rather than resort to violence.
However, on the night of September 17, 2024, a group of Chinese nationals, allegedly backed by armed officers, attacked Liu and his family at the Namanve premises. The victims were severely beaten and hospitalized at Nakasero Hospital.