KAMPALA, UGANDA – Tian Tang Group, a leading industrial hub in Uganda, has issued a statement addressing allegations surrounding its partnership with Automobile Group (U) Limited, labeling recent media reports “malicious, defamatory, propagandist, and misleading.”
The dispute revolves around a December 2019 cooperation agreement between Mr. Liu Qingshan, Mr. Yan Sheng, and Mr. Zhang Zhigang to establish Automobile Group (U) Limited for automobile assembly in Uganda. Under this agreement, Tian Tang Group provided 10 acres of land in the Sino-Uganda Mbale Industrial Park, a 640-square-meter exhibition hall, and a 2,700-square-meter workshop rent-free for three years.
Tensions escalated when Mr. Liu registered two competing companies – Watu Auto Works (U) Ltd in April 2023 and NEC-WATU AUTOMOBILE (U) Ltd in October 2023 – without fellow shareholders’ consent. These companies allegedly utilized Tian Tang Group’s premises, excluding other partners and violating the cooperation agreement.
Tian Tang Group refuted claims that its chairman contributed only land as equity, calling them “false and unfounded.” The company stressed that shareholders were prohibited from engaging in conflicting business activities.
As a prominent industrial hub, Tian Tang Group has driven significant investment, created thousands of jobs, and contributed to Uganda’s development under the China-Uganda Cooperation.
See full statement below
KAMPALA—Tian Tang Group is a leading industrial hub within the Republic of Uganda. The Group is established under the auspices of the China – Uganda Cooperation. Over time, the group has attracted significant investment in Uganda creating thousands of Jobs and contributing to development.
Our attention has been drawn to malicious, defamatory, propagandist and misleading media reports currently circulating about our relationship with Automobile Group (U) Limited.
Automobile Group (U) Limited was established following the cooperation agreement between Mr Liu Qingshan, Mr Yan Sheng and Zhang Zhigang in December 2019.
In the terms of the agreement, it was agreed as follows:
1.The parties incorporate a company to among others carry out the business of assembly of automobiles.
2.The shareholding for Automobile Group (U) Co. Ltd to be as follows: Liu Quingshan Yan Sheng and Zhang Zhigang.
Tian Tang Group authorized the investment and allowed its chairman to invest in the Company.
Consequently, 10 acres of the land in the Sino-Uganda Mbale Industrial Park were allocated to the Company. The Company also received 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.
The allegation that our Chairman only contributed land as equity in the joint venture is false and unfounded.
In further terms of the cooperation agreement, all shareholders were prohibited from undertaking business which conflicted with that of the company.
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 clearly violated the agreement between the partners and occasioned considerable loss.
