Kampala | Pepper Exclusives – President Yoweri Kaguta Museveni has ordered the Governor of Bank of Uganda Emmanuel Mutebile, to investigate Equity bank on claims of illegal sale of Simbamanyo building and Afrique Suites.
The order is entailed in a letter written by the president Museveni dated 3rd, September 2021 addressed to Professor Emmanuel Tumusiime Mutebile, the governor of Bank of Uganda and the two victims who happen to be the owners that petitioned him.
President Museveni said that Peter Kamya and Dr. Margaret Muganwa appealed for his intervention regarding the sale of Simbamanyo house and Afrique suite by equity bank respectively.
He further said that the victims stated that, whereas Bank of Uganda directed that there should be no foreclosure of mortgaged properties by banks during the Covid-19 pandemic, Equity Bank went ahead and sold their properties at very low prices.
They also asserted that even when they had offered to get their own buyers, all their attempts were frustrated by the bank.
He, therefore, ordered for expeditious investigation into the matter within a week (seven days which have ever since elapsed).
“This is, therefore, to direct that you expeditiously investigate the matter and report back within one week” reads president Museveni letter in parts.
It should be noted in February, this year Simbamanyo Estates Limited lost a case in the high court in which its proprietors were challenging the sale of its multimillion property as a bank moved to recover outstanding loans worth $10.8m (about Shs40 billion).
Equity Bank sold Simbamanyo house, which houses the Ministry of Gender, labour and social development to the city tycoon Sudhir Ruparelia.
Simbamanyo Estates is not the only victim of banks attaching client’s property to recover loan areas. In July, Kampala city businessman and former MP for Bukoto South, Mohammed Muyanja Mbabaali properties were advertised in the press for public auction by Diamond Trust Bank.
The property includes five commercial buildings and plots in Kampala, Mpigi and Masaka city.
The bank, through their lawyers, MMAKS Advocates and Trust General Auctioneers and Court Bailiffs on Thursday (July 15) placed an advertisement in the media.
The lawyers and auctioneers warned that they will proceed to sell the properties by auction or private treaty “after the expiry of 30 days from the date of this notice or thereafter unless the debtor pays all monies owed to our client, plus fees and costs incurred in the process”.
The advert named Mbabali and his company MFK Corporation Limited as the debtors. All occupants of the premises listed were given 14 days to vacate, “to enable prospective buyers to inspect the property”.