KK Security Group has won a landmark ruling against the
violent takeover of its subsidiary in South Sudan by a minority shareholder, ending a dispute that should serve as a guide on how to invest in the volatile semi autonomous region.
The court, sitting in Juba on October 26, ordered Bading Machar who had a one per cent stake in the Southern Sudan subsidiary to return all property including vehicles and office furniture belonging to KK Security.
It also ordered him to pay KK Security $4.4 million (Sh352 million) in damages and loss of business arising from the dispute, which saw the security firm’s operations in the country grind to a halt last year.
The company set up shop in Southern Sudan in 2005, eyeing lucrative contracts, especially with international firms such as the UN.
But in 2006 Mr Machar, a relative of Southern Sudan’s vice president Riek Machar and a director of the firm, forcibly took over the company and its assets.
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