DALIFA FUND
DALIFA is an acronym that stands for : Discharge and Appropriation of the Lessee/Lessor Interest in Financed Assets. It was inspired by the Asset Backed Securities Regulatory Framework whose inherent Trust Law provisions in the preservation of Investee/Investor Wealth are a Case Study of Excellency that ought to be emulated by Fiduciaries including Bank of Uganda. Funding is the act of providing resources, usually in form of money, or other values such as effort or time, for a project, a person, a business or any other Private or Public Institution. The process of soliciting and gathering is known as Fundraising.
The wishes of the Settlor of the DALIFA FUND are: the preservation of the Lessee/Lessor (Investee/Investor) Wealth; Contribution of Capital to a Holding Company that shall execute the HZiQZ Project Uganda Scheme (DALIFAiSPECIAL PROJECT) to empower the Beneficiaries by providing them with an opportunity in the Capital Appreciation of the shares of the Holding Company through a Trust; And, the retention of a multi-stakeholder Corporate Board of Trustees to administer the Discretionary Trust Fund whose Powers are slated to be the same as those of the Bare Trustee.
HZiQZ Theme: From the Original Vehicle and/or Equipment Manufacturer to a Pay As You Go End User; HZiQZ Project Simply destined to be implemented by enabling IoT Bookings, Bill Payment and Go Motoring for [Prestige, Delight & Budget] Ride-hailing, Hire, Rent and Lease of Vehicles and/or Equipment.
Tax Regime: Uganda Revenue Authority now is implementing the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) which is a Transparent and Refined VAT Administration System devoid of the Dark Alleys characteristic of the Old Regime (e-Tax Filing).
OPINION: SUPREMACY OF TRUST LAW IN THE PRESERVATION OF WEALTH
The divergence between Public Interests and Private Interests witness the suppression of the use of Trust Deeds in preference for instruments such as Debenture Deeds which are premised on Public Law and Private Law respectively.
Trust Deeds contain mandatory provisions to trigger Court intervention at the prompt of an Aggrieved Party yet with regard to Debenture Deeds the intervention of Court is at the discretion of the Principal Parties one of which is dominant and unrestrained. The Debenture holder / Secured Creditor can exercise the option of placing a Defaulting Party under Receivership without the need of seeking the intervention of Court. The majority of disastrous erosion of Wealth witnessed in Uganda arise from Financial Institutions preferred course of action of retaining Receivers as a Debt collection conduit which Receivers are at liberty to auction/liquidate/administer the Borrowers Assets even where the conditions of sale and/or corporate governance are unpropitious – Emerald Hotel Ltd & 3 Ors Vs. Barclays Bank of Uganda Ltd & 4 Ors. The ultimate Supreme Court Decisions that associate with those of the Lower Courts against Bank of Uganda in the Crane Bank and Meera Investments Limited scandal bear testimony – Crane Bank reverts to tycoon Sudhir.
The Statutory Manager, Edward Katimbo Mugwanya, that unilaterally replaced the Board of Directors of Crane Bank was best suited for being transitioned to a Settlor in protecting the Contributors ( Uganda Taxpayers) and Beneficiaries (Defunct Crane Bank Depositors) using the medium of an Independent Corporate Board of Trustees as Protected by a competent Court other than reporting to the Governor - Bank of Uganda. [See: Excellent Assorted Manufacturers Limited and Another Vs. DFCU Bank Limited and Others (Civil Suit 338 of 2017) [2023] UGHCCD 231 (16 August 2023) ]
It is prudent for the Republic of Uganda Parliament to intervene as a matter of National Importance by urgently tabling the requisite Bill that brings to the fore a Current and Robust Trust Law legal environment by bench-marking the United Kingdom (UK) and the United States of America (USA) to forestall a replication of the Crane Bank Limited/Meera Investments Limited scandal to the detriment of the Uganda Taxpayers.
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| File Photo/Courtesy: UGANDA SUPREME COURT CORAM IN THE CRANE BANK CASE, AN EYE OPENER – DIRE NEED FOR AN OVERHAUL TO FORESTALL FUTURE SCANDALS |
LEGAL ALERT:
WHOLE-BUSINESS/OPERATING-ASSET SECURITIZATION
Whole-Business or operating-asset securitization is a strategy that seeks to isolate the operating assets from the credit risk of the parent entities so that the lender is relying primarily on the value of the assets in making the loan. Candidates for this type of finance hold valuable intellectual property or recurring contract revenue that can be exploited over a considerable period of time. Covenants in whole-business deals are generally focused on maintaining the value of assets so that debt service coverage is maintained. An affiliate of the parent company may be retained to manage the operating-asset securitization, but such an affiliate may generally run the business as it has done so before the securitization.
Corporate Trustee: Quartz & Richmond Foundation Limited o/a Discharge & Appropriation Fund (DALIFA FUND), Acting in Trust for and on Behalf of the Shareholders, the Current and Former Directors AND the Current and Former Employees (including their Affiliates and Associates) of C & A Tours & Travel Operators Limited [Formerly the HERTZ International Franchisee - Uganda].
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| File Photo/Courtesy: Proposed Government of Uganda Business Facilitation Centre (UBFC), Plot 1, Baskerville, Kololo |
Relocation Alert: Uganda Registration Services Bureau (URSB) relocates to UBFC.
Shortlist of Legal Documents:
Citation: Trustees Legislation/Uniform Trust Codification for Uganda, United Kingdom and the United States of America.
Comment: Uganda now Ready for Business as we transition from the pangs of COVID-19 Global Business Disruptions AND the Opportunistic conduct of the Rogue Financiers that seek to rip-off Investees/Investors to the bone marrow.
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| File Photo/Courtesy: Litigants paying a price for trillions locked up in Commercial disputes |
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