Makerere Threatens to Block NIC Listing

Makerere University academic staff yesterday moved to secure a court injunction against the proposed listing of the National Insurance Corporation on the Uganda Securities Exchange.Mr Tanga Odoi, the chairman of the university academic staff association, yesterday said the employees want court to block the listing because it is aimed at "swindling" their hard-earned savings and those of potential buyers of NIC's shares.

"We strongly oppose the listing because of the issue of the Shs17.7b it owes us," said Mr Odoi. "Unless this is solved, we are going to use any legal means possible to stop the process. Right now, our lawyers are going to secure a court injunction."

The announcement came hours after NIC indicated it will start selling the 40 per cent stake the government owns in the company to the public today. The insurance firm will sell government's 161.6 million shares to the public for Shs45 per share, according to their draft prospectus. The other 60 per cent is held by Nigeria-based Industrial and General Insurance Company.

Whereas the university staff insist that their savings with NIC stand at Shs17.7 billion, the insurer says the money is Shs15.6 billion and has been invested in other ventures.

NIC unfazedIn a phone interview yesterday, NIC's spokesperson Josephine Aguma said the company has been discussing with Makerere over their issues and will proceed to sell government's shares. "We are unaware of any court injunction," she said. By last evening Makerere's lawyers had not secured the court ban. "We are not going to conduct the affairs of our client in the media. NIC will continue to engage Makerere to find an amicable resolution," she said.

Mr Odoi warned of a "sit-down strike" should NIC go ahead to announce the sale of the shares today.