BLOODY: NEC-WATU Automobile Group & UPDF Cited as Chinese Investors in Uganda Fight Over Industrial Park

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Liu Qingshan lies on the ground after a brutal beating.




The usually quiet Namanve Industrial Park, 10 km east of Kampala, has turned into a hotspot as fights among investors turn bloody. Two Chinese investors—Liu Qingshan (63) and Lu Hanbin (32)—were on Wednesday morning, September 18, 2024 brutally attacked in their sleep by a group of fellow Chinese and men suspected to be attached to the Uganda People’s Defence Forces-UPDF.









The duo, owners of NEC-WATU Automobile Group, a joint venture with the UPDF’s National Enterprise Corporation (NEC), were attacked by a gang of people that allegedly smashed their way into the apartment at 5:00 am.







Table 1: Summary of the Incident




 




Incident Details Information
Date and Time September 18, 2024, 5:00 AM
Victims Liu Qingshan (63), Lu Hanbin (32)
Attackers Fellow Chinese led by ‘Martin’, with armed UPDF men
Items Stolen 2 phones, 1 desktop computer, 1 laptop
Suspected Escape Route Headed towards Mbale Industrial Park

 




 







The attackers didn’t just beat them up and leave them bleeding, they stole mobile phones, a desktop, and a laptop before fleeing in five vehicles, one of which had the infamous number plate UBF 588F, a white Prado. Clearly, these were not your ordinary thugs. By the time police responded, it was too late—the attackers had long disappeared.




Liu and Lu were rushed to Nakasero Hospital for treatment, with this attack believed to be arising with their recent fallout with Tian Tang Group, another industrial heavyweight in the game.




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Table 2: Timeline of Key Events




 




 




Time Event Description
Tuesday, September 17 Liu and Lu release statement accusing Tian Tang of unfair practices
Wednesday, September 18, 5:00 AM Attack occurs at their apartment in Namanve Industrial Park
Early Wednesday, September 18 Attackers flee towards Mbale Industrial Park

 




Escalating wrangle.    Just a few hours earlier, Liu and Lu had released a public statement crying foul over how Tian Tang Group, their rivals in Mbale Industrial Park, was muscling them out of business. Tian Tang’s only contribution to their joint venture was land, but with no title to show for it – a classic Ugandan land wrangle, except this time, it’s happening on Chinese soil… in Uganda.




According to Qingshan, Tian Tang Group boss Zhang Zhi Gang has suffocated their business so much that they might pack up their USD 6 million investment and relocate to greener pastures—maybe Rwanda or Kenya, where the grass (or land) might be a little less hostile. But before you think it’s a simple story of one company squeezing another, Qingshan dropped the bombshell: “Tian Tang doesn’t just suffocate us, they practically own the government!” A statement bold enough to make even the most politically connected Ugandan businessman sweat.




It turns out that Tian Tang Group has been doing more than just managing industrial land. They have allegedly been selling off government gifted land at prices that would make even Kikuubo traders raise an eyebrow—up to USD 40,000 per acre! This when they are only paying the government a measly $5 per year. That’s like buying Katogo at a fancy hotel but paying Owino market prices!




Table 3: Land Lease vs. Market Price Comparison




 




Entity Lease Price Per Acre Market Price Per Acre
GoU (Tian Tang Lease) $5/year N/A
Tian Tang (Reselling) N/A $40,000 – $200,000

Meanwhile, Liu, who began his engineering journey back in 1988 in China, has been trying to breathe life into the Ugandan automobile industry, promising to roll out 3,000 to 4,000 vehicles annually and employ thousands of Ugandans. But with these kinds of industrial sabotage games, it’s not surprising that he’s threatening to pack his bags and head to Rwanda or Kenya. President Museveni’s much touted industrialization dream might just be on life support if these kinds of investor wars keep playing out.




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And while Liu and Lu battle it out in court against Tian Tang over their land disputes, rumors are swirling around that Tian Tang has powerful friends in both the Uganda Investment Authority (UIA) and other government corridors. A whistleblower even alleged that Tian Tang is renting out empty warehouses at Mbale Industrial Park for USD 5 per square meter per month. It seems like Tian Tang isn’t here to build factories but to rent out real estate.




Table 4: Whistleblower Claims on Industrial Park Dealings




Claim Description
Tian Tang’s Land Price Sells at $40,000 – $200,000 per acre
Warehouse Rental Price $5/square meter/month
Alleged Corruption Involvement of UPDF and UIA officials

In true Ugandan style, it’s said that when big government officials visit the park, Tian Tang bosses train Ugandan employees on what to say and how to smile, as if they were extras in a movie about the perfect factory. “We only tell good stories, never the truth!” lamented one employee, clearly fed up with the charade.




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With all this drama unfolding, one wonders if President Museveni’s push for industrialization isn’t being derailed by these internal investor wars. RISE NEWS UGANDA NETWORK teams are closely following.









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