"Lodge owners in a prime coastal resort are pitting the Danish and Mozambican governments against each other in a bitter legal row over who owns a piece of paradise.

Jørgen Nielsen, a Danish businessman, ran into trouble in paradise shortly after he bought rights to a piece of land in the Vilanculos Coastal Wildlife Sanctuary from a South African developer in 2001. Nielsen built Nyati Beach Lodge in the sanctuary, which is situated in southern Mozambique and is a treasure trove of natural resources.

For the past five years the Dane has been fighting a ding-dong legal battle with a Mozambican lodge owner, Rex Potter, who won a court order saying he owned the land rights on the site. Potter also owns Casa Rex, another tourist lodge near Vilanculos.

Matters came to a head at the end of February, when the Danes "invaded" the property, handcuffing Potter's employees and chasing them away. The Danes have occupied Nyati lodge ever since and they claim they have a new court order that overrules Potter's original order."