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Home Top News Jailed Silk Events boss Sekyanzi to appear in court today over sh830m debt  

Jailed Silk Events boss Sekyanzi to appear in court today over sh830m debt  

by Editorial Team
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By Michael Odeng  

Businessman Elvis Sekyanzi has spent a week in Luzira Prison over accumulated debt amounting to sh830.38m, owed to Mash Investment Limited.

He is expected back to court over the same matter.

The Commercial Court Deputy Registrar, Juliet Harty Hatanga, committed Sekyanzi to civil prison for six months after failing to pay the money.

“You are hereby commanded to take and receive Sekyanzi to civil prison for a period not exceeding six months. He shall be released to the terms and provisions of Section 43 of the CPA and court does hereby fix 5000 as subsistence during his confinement under this warrant of committal payable weekly in advance,” Hatanga ordered.

Sekyanzi wanted to make a part payment of sh200m, but Francis Machete, the proprietor of Mash Investment, refused, prompting the deputy registrar to jail him, pending further negotiations.

However, Sekyanzi is expected to appear in court this morning, July 7, before the same registrar.

According to sources, some of Sekyanzi’s properties have been attached by Machete in order to recover the debt.

Court documents indicate that in 2014 Sekyanzi, together with Isaac Mulindwa and Mash Investment, entered into a pre-incorporation agreement to incorporate and run an entity known as Liquid Silk Bugolobi Limited at Village Mall, Bugolobi, Kampala.

The incorporation documents were drawn and signed by the parties and Mash Investment advanced to Sekyanzi $136,000 (sh487m) as part payment of its share contribution for the 20% subscription of the company’s entity.

However, Mash Investment contends that despite making the payment, Sekyanzi refused to avail him copies of the incorporation documents.

Mash Investment says upon conducting a search at the Uganda Registration Service Bureau, he discovered that the entity has never been registered as claimed by Sekyanzi.

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