Prime
Museveni pulls out of Simbamanyo loan row
Simbamanyo House on Lumumba Avenue . PHOTO | COURTESY
What you need to know:
- They had claimed that whereas Bank of Uganda directed that there should be foreclosure of mortgaged properties by banks during Covid-19 pandemic, Equity Bank went ahead and sold their properties at very low prices during the Covid time.
President Museveni has pulled out of the Simbamanyo assets loan row, in which he had been petitioned to intervene in an alleged illegal sale of Simbamanyo House and Afrique Suites by Equity Bank Uganda.
Mr Museveni in his letter dated October 25 to Mr Peter Kamya and Dr Margaret Muganwa Kamya that this publication has seen, contends that the sale of the aforementioned properties by Equity Bank was legal, hence no need for his intervention as the Head of State.
“Following receipt of your complaint (businessman Kamya and Dr Munganwa) to me about the illegal sale of your properties by Equity Bank, I directed the Attorney General and the governor, Bank of Uganda to investigate the complaint and report back,” reads in part Museveni’s response
He continued: “I have since been advised that the sale was legal since you (businessman Kamya) had defaulted on payment of the loan and did not deposit 30% of the loan amount as was ordered by the court.”
The President, whose letter has been copied to the Attorney General, Mr Kiryowa Kiwanuka, Justice Ministry and governor Bank of Uganda, went on to advise the Kamyas that they are at liberty to seek court remedies if they feel dissatisfied.
Simbamanyo House is located on Lumumba Avenue and houses the Ministry of Gender offices.
They had claimed that whereas Bank of Uganda directed that there should be foreclosure of mortgaged properties by banks during Covid-19 pandemic, Equity Bank went ahead and sold their properties at very low prices during the Covid time.
Further, they had claimed that they had offered to get their own buyers but all their attempts were frustrated.
The businessman had sued Equity Bank Uganda and Kenya and another, seeking orders and declarations that the $10.8m loan (about Shs36b), he obtained in 2017, was illegal.
But Justice Boniface Wamala on September 7, 2020, ordered Simbamanyo to deposit $3.1m (about Shsh11b) which was 30% in order to avert the auction of the properties.
The businessman failed to meet the 30 days deadline, prompting bailiffs to advertise the properties.
The same properties upon the expiry of the deadline were sold with Simbamanyo House being sold to Meera Investments Limited while Afrique Suites at Mutungo in Luzira, Nakawa Division, was sold to Luwaluwa Investments.
The property was guaranteed to Equity Bank Uganda as security for Simbamanyo Estates Limited to get a $10.8m (about Shs36b) loan in November 2017.
Simbamanyo House has since been renamed, Gender & Labour House.
