Tian Tang Group Speaks out on Disputes with Automobile Group

According to the statement by the management, the Group, established under the auspices of the China-Uganda Cooperation, has attracted significant investment in Uganda, creating thousands of jobs and contributing to the country’s development because of this Tian Tang Group’s Chairman, along with Mr. Yan Sheng and Zhang Zhigang, entered into a cooperation agreement to establish Automobile Group (U) Limited in December 2019.

The agreement stipulated that the parties would incorporate a company to assemble automobiles, with a shareholding structure comprising Liu Quingshan, Yan Sheng, and Zhang Zhigang. Tian Tang Group authorized the investment and allocated 10 acres of land in the Sino-Uganda Mbale Industrial Park, as well as a 640-square-meter exhibition hall, a 2,700-square-meter workshop, and an apartment in the Namanve Industrial Park rent-free for three years.

Contrary to false reports, Tian Tang Group’s Chairman did not contribute land as equity in the joint venture. “The allegation that our Chairman only contributed land as equity in the joint venture is false and unfounded…..” reads the statement.

Furthermore, the cooperation agreement prohibited shareholders from engaging in conflicting business activities. However, Mr. Liu Qingshan violated this agreement by registering two competing companies, Watu Auto Works (U) Ltd and NEC-WATU AUTOMOBILE (U) Ltd, without the consent of fellow shareholders. These companies utilized the premises allocated to Automobile Group (U) Limited, excluding other partners and causing significant losses.

“In April 2023, Mr Liu went on and registered another company Watu Auto Works (U) Ltd engaging in the same business with Automobile Group (U) Co. Ltd. In October 2023, Mr Liu still without the consent from fellow shareholders, registered another competing company NEC-WATU AUTOMOBILE (U) Ltd, with 80 percent shares and NEC with 20 percent shares. The above companies started using our premises availed (per the cooperation agreement) for their operations to the exclusion of the rest of the partners. Mr. Liu deliberately excluded all partners from participating in the business and refused to render any accountability for the investment. This conduct violated the agreement between the partners and occasioned considerable loss,” reads part of the statement.

The management went ahead and revealed that Mr. Liu Qingshan also forged the signature of Tian Tang Group’s Chairman on company documents to adjust the shareholding in his favor. Despite efforts to mediate the dispute through the Head of State House Investors Protection Unit, Col. Edith Nakalema, and General James Mugira, Mr. Liu declined to cooperate, and the process ultimately failed.

“Our chairman sought reconciliation. Through the Head of State House Investors Protection Unit Col. Edith Nakalema, efforts were made to mediate and reconcile the parties but Mr. Liu declined to cooperate or present any information to assist the process…”

After failure to reconcile, the Group requested that since Mr. Liu had decided to instead partner with National Enterprise Corporation to conduct competing business, they should be given time to vacate the contested premises. Mr. Liu has, however, forcefully occupied these premises for a period coming to two years without payment. “Our lawyers K&K (Kiwanuka and Karugire) Advocates commenced the process of legally evicting Mr. Liu from our premises and the matter is pending in the courts of law. We also sought the intervention of General James Mugira to assist with the mediation. The process of mediation by general is still underway.”

According to the management, the allegations that Tian Tang Group charges investors to meet with government officials, including the President are false and intended to soil their reputation.

“Our attention has been drawn to allegations that our group charges money from investors to see the President and other government officials. We state that this is false. Every month, Chinese investors in the Sino-Uganda Mbale Industrial Park hold meetings with the management to discuss issues that may affect their operations, and solutions are provided. It is through these meetings that we discuss issues arising and where need to seek redress from relevant government bodies at no cost.”

The Group affirmed that it offers free services to investors, including business registration, certification, marketing, setup, importation clearance, tax compliance, and warehousing, among others. “Tian Tang Group remains committed to transparency, accuracy, and truthfulness, and urges stakeholders, partners, and the general public to ignore false and malicious reports.”

Despite the challenges, Tian Tang Group has reassured its stakeholders and the public of its dedication to truthfulness and professionalism in its dealings. The Group remains focused on supporting Uganda’s growth through industrialization and collaboration with the government. “Our dedication to this Country is to invite investment in conjunction with the Government. To this end, we incur significant costs in marketing this beautiful country to the rest of the world.”