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Global Security JSC bankruptcy case terminated

Minister Muhwezi (middle) presided over the signing ceremony of the agreement between Uganda and the M/S Joint-stock global systems company on the intelligent transporting monitoring systems. File Photo

Kampala, Uganda | THE INDEPENDENT | A bankruptcy litigation against Global Security JSC, a Russian company that was awarded a 10-year contract to install digital monitoring systems in all motorcycles and vehicles in Uganda has been terminated.

The case was terminated on November 22, according to a ruling by the Arbitration Court of the City of Moscow, after the company paid the debt it owed to the LLC “Rus Prom-Technologies”, another Russian company that wanted it declared bankrupt.

“Taking into account the provisions of Art. 110 of the Arbitration Procedure Code of the Russian Federation, as well as the fact that the debt was paid off by the debtor after the creditor applied to the arbitration court and the application for declaring the debtor bankrupt to the arbitration court was accepted, the state fee paid by the applicant in this case in the amount of 6,000 rubles is subject to collection from the debtor,” the court ruling reads.

“Considering the above and guided by the Federal Law On Insolvency (Bankruptcy), Moscow Arbitration Court terminate the proceedings in the case on the bankruptcy of Global Security JSC,” the ruling further reads.

The court ruling doesn’t indicate the amount of money that Joint Stock Company Global Security paid “Rus Prom-Technologies” and when. But the payment must have been made after September 9th, 2021, the last time that the parties were in court.

The Rus-Prom-Technology–Joint Global Security litigations began in March 2019 when the former sued the latter for failure to pay 16.6 million rubles (Russian currency) – about $220,000. When Rus-Prom-Technology won the case and Joint Global Security failed to pay, the former sued the latter.

What is not clear is how Joint Stock Security raised money because the court earlier ruled that no company assets had been identified which could pay for the cost of bankruptcy proceedings.

In July, Attorney General Kiryowa Kiwanuka said the 10-year contract with the Russian company Joint Stock Company Global Security was approved by his office.

More debts

Global Security has been facing other debt litigations in Russia. Stok-Trading LLC sued it for a debt of 1.2 million rubles which is about $16,260, Jsc Royal Silk Factory sued the company for a debt of 19.9 million rubles ($270,000), Turday GS Slovak Republic sued the company for a debt of 6.1 million rubles ($82,655), JSC ZVI sued the company thrice; first for a debt of 23 million rubles (about $300,000) then a debt of 10 million rubles (about $135,500) and 4.6 million rubles (about $62,330).

Global Security has also been sued by Limited Liability Partnership “Orken Alem” for a debt of 8.5 million rubles (about $ 115,175) and Gu Main Department of the Pension Fund of the Russian Federation for failure to pay 10,000 rubles (about $135) and 455,00 rubles (about $600). All these cases were filed between 2019 and July 2021.



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