The Multi-Billion Investment Meltdown
An infographic detailing the complex financial dispute between C & A Tours & Travel Operators (Hertz Uganda) and NC Bank over an asset finance facility and alleged VAT irregularities.
The Dispute at a Glance
Potential Counter-Claim
Filed by C & A Tours against NC Bank, citing catastrophic business losses.
Initial Fleet Value
Fair market value of the 43+ vehicles financed for the CNOOC contract.
Vehicles Sold at Auction
The entire fleet was disposed of by the bank, allegedly below market value.
The Key Players
C & A Tours (The Aggrieved)
The lessee (Hertz Uganda) who secured a contract with CNOOC. Alleges NC Bank's actions led to their financial ruin.
NC Bank (The Financier)
The lessor who provided the asset finance. Accused of VAT irregularities and forcing the vehicle auction.
CNOOC Uganda
The end-client. The transport services contract with CNOOC was the basis for the entire finance deal.
Uganda Revenue Authority (URA)
The tax regulator. C & A's petition to the URA was a critical step, revealing discrepancies in VAT declarations.
Bank of Uganda (BOU)
The banking regulator. C & A filed a consumer complaint, who then directed the matter to the URA.
Ministry of Trade (MTIC)
The government mediator. Convened a meeting with all parties in 2017 to attempt an amicable resolution.
The Core of the Dispute
C & A's claim centers on the handling of Value Added Tax (VAT). They allege a scheme where the bank's actions led directly to their URA account deactivation and business collapse.
1. THE CONTRACT
C & A Tours wins a major transport contract with CNOOC Uganda.
2. THE FINANCE LEASE
C & A secures an asset finance facility from NC Bank to acquire a 43+ vehicle fleet.
3. THE ALLEGED IRREGULARITY (THE CORE CLAIM)
C & A alleges NC Bank was to remit VAT, but failed to provide proper tax invoices or handled VAT collections irregularly.
4. THE CONSEQUENCE
The Uganda Revenue Authority (URA) deactivates C & A's VAT account due to non-compliance and discrepancies.
5. THE MELTDOWN
With no active VAT account, C & A cannot service the CNOOC contract, leading to its collapse and a default on the lease.
6. THE FORCED AUCTION
NC Bank seizes and sells the entire vehicle fleet at auction, allegedly below market value, to recover funds.
The Financial Impact: Vehicle Auction Discrepancy
Data from the forced auction reveals significant discrepancies. This chart shows the price a vehicle was sold for versus the amount the bank actually credited towards the loan, based on data for a sample of the fleet.
This visualization highlights the gap between the total sale price and the portion applied to the loan, which was a central grievance for C & A Tours.
Timeline of Key Events
2012 - 2013
The Beginning
C & A Tours secures the CNOOC contract. NC Bank provides the asset finance facility for the vehicle fleet.
October 2015
First Petition
C & A files an Aide-Memoire with the URA, formally petitioning them about NC Bank's alleged VAT irregularities.
September 2016
The Auction
NC Bank invites C & A to participate in the public auction of their own vehicle fleet to recover outstanding monies.
June - Aug 2017
Regulatory Escalation
C & A petitions the Bank of Uganda (BOU) and the Ministry of Trade (MTIC). The MTIC convenes a mediation meeting with all parties.
Oct - Nov 2017
Public Fallout
The dispute becomes public, with articles published in the Sunday Vision newspaper, bringing the case into the spotlight.
The Public Fallout
The case eventually spilled into the public domain, with national media reporting on the allegations.
"NC Bank implicated in scam"
- Sunday Vision, October 29, 2017
"City businessman pins NC Bank in a botched car deal"
- Sunday Vision, November 5, 2017
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