Members of Ndere Troupe perform at a function. Ndere Centre, undoubtedly the troupe’s jewel in the crown found close to the northern bypass in Ntinda, a Kampala suburb, is up for auction over a Shs10b debt. PHOTO | FILE
On Thursday this past week, Quickway Auctioneers took out space in the media to make clear that Ndere Troupe Limited’s assets in three prime areas across the country, including the capital, will be up for a fire sale at the backend of this month.
The court bailiffs said in the media advertisement that the noose around Ndere Troupe’s neck will only loosen if it pays “us all monies owed to our client plus our fees and costs incurred in the process.”
Sunday Monitor has since established that the client on whose behalf Quickway Auctioneers is acting is Uganda Development Bank (UDB). The lender is, we have also been reliably informed, looking to recover a loan from Ndere Troupe that has since increased to Shs10.5b.
In an interview, Stephen Rwangyezi, Ndere Troupe’s proprietor, told Sunday Monitor that the cultural centre failed to keep up with penalties and accrued interest after taking out a Shs6.8b loan with UDB in 2019.
This was to expand the footprint of his business shortly before the Covid-19 pandemic reared an ugly head. Mr Rwangyezi said while UDB gave him a grace period of a year, his hands were tied.
“I have been given two options, either pay 30 percent of the loan [which now stands at Shs10.5 billion] and another is to clear the entire amount in a period of 30 days. I will not be able to get this money; that is why I am asking for help,” he said.
Dealt a bad hand
Denis Kyazze, the contact person between the lender and Mr Rwangyezi, was economical with information when Sunday Monitor reached out yesterday.
He said: “It’s a weekend and I am attending to my family. I don’t want to comment about that story because there are procedures of the bank through which the information can be gotten and that is not my part. I don’t even know what you are talking about and my network is not good. Bye.”
Just like Mr Kyazze’s phone service, Ndere Troupe has found it terribly difficult to service a loan it took out to service its expansionist plans. We understand that Mr Rwangyezi borrowed up to Shs6.8b from UDB in December of 2019.
The money was wired to Ndere Troupe Limited’s bank accounts in three instalments. In under three months, Uganda would bring in pandemic curbs that put many business undertakings on life support. Ndere Troupe was one of the entities gravely impacted, with social distancing measures, meaning the activities that helped it turn in a profit were put on hold. Mr Rwangyezi told Sunday Monitor that he was unable to use the money for its intended purpose across three years as Uganda maintained pandemic curbs. Per the Ndere Troupe proprietor, the lender continued to place interest on the money despite “its redundancy in the bank.”
“I had gotten this loan to improve the services at the centre and expand to other parts of the country. I wanted to build a hotel in Kisoro District and another in Bulenga in Wakiso District,” Mr Rwangyezi revealed.
He added: “We wanted to open an institute at the main centre in Ntinda that would help to teach students and document about the Ugandan culture and heritage, which I think is running into extinction.”
What next?
Mr Rwangyezi said he values his business that sits on about 21 acres of land at Shs120b.
This indicates that he would incur a colossal loss if the lender sells his assets at slightly above Shs10.5 billion as Quickway Auctioneers indicated in a media notice this past workweek.
The revelations by the Ndere Troupe top honcho also calls into question promises that President Museveni made in his televised national addresses as he tried to assuage the business community during the height of the pandemic.
Mr Museveni indicated during that period—when Uganda, among others, enforced a dusk-to-dawn curfew that was policed in a heavy-handed manner—that UDB would offer a string of incentives to its clients and other investors. These included interest-free loans and zero penalties to the borrowers. The incentives were intended to cushion the economy that was struggling at the time.
Attempts to get a comment from the President’s office were unsuccessful by press time.
SEEKING HELP
On his part, Mr Rwangyezi said: “I call upon Ugandans, the Government of Uganda, and especially President Museveni, to come in and help me get this loan away or at least convince UDB to give me some grace period because the Kisoro Hotel has started operating, and give us some money to pay the loan. Not only are we going to lose our only heritage centre but also more that 200 Ugandans are going to lose their jobs.”
Ndere Centre, undoubtedly the troupe’s jewel in the crown, is found close to the northern bypass in Ntinda, a Kampala suburb. According to records, the centre acts as a magnet for more than 600 foreign tourists per month. Statistics show that during their shows, which happen three times a week, more than 150 tourists attend, bringing millions of dollars into the country.
Mr Rwangyezi also runs a dancing troupe that has represented Uganda on different international stages, showcasing the cultural dances representative of Uganda’s rich tapestry.
