Prime
Museveni sucked in fight for city building
Namuswa Plaza in Wandegeya, Kampala, that is under contestation. PHOTO/ISAAC KASAMANI
What you need to know:
- At the height of Covid-19 lockdown in April 2020, President Museveni directed banks not to count days when people were not working to service their loans. The Central Bank had also directed commercial banks to restructure loans and give people a holiday of up to one year but on a case by case basis.
A businessman has petitioned President Museveni to intervene and save his commercial building located in Wandegeya, Kampala, from being taken over by a commercial bank.
Mr Alfred Higenyi, in his October 5 letter to the President, contends that he secured a Shs3b loan from Equity Bank on December 23, 2020, payable in eight years.
He says the loan was to be used to complete the construction of the same Namuswa Plaza.
The businessman claims to have used the same building located on Plots 298 and 299, Block 38 Kibugu as collateral security.
“However, no sooner had the property started to earn income, than the Covid-19 pandemic stepped in. Your Excellency, as you are aware, all businesses closed and there was no revenue being generated for a period of two years. I approached the bank and requested them to restructure my loan for a long period, they did not restructure but instead increased installments from Shs57m per month to Shs65m per month,” he claims.
Mr Higenyi adds: “Definitely, the business could not sustain these exorbitant monthly remittances since business was generally low and many tenants did not return after the pandemic. I ended up making monthly remittances of Shs30m. To date, I have deposited up to Shs500m and according to the bank, the outstanding balance is Shs4.4b.”
According to the letter that this publication has seen, the bank went on and advertised the businessman’s building on August 15, which expired on September 15.
“However, before the expiry of this date, I tried five times to engage the bank but they kept dodging me. I have finally engaged a lawyer, put a caveat and I am currently processing a court injunction,” the businessman avers.
Mr Higenyi adds that the current value of his property after complete construction is about Shs10b, the reason he says he pleaded with the bank to allow him sell it off himself and pay off all the money since he had got a buyer. He claims the bank never gave him the option of him selling off the property, the reason he proceeded to put a caveat on it.
“Yesterday, October 4, my property was surrounded by both the army and police, being commanded by the DPC and the commandant KMP with a letter from a local lawyer, D Kagarura Advocates & Solicitors on behalf of SINACO Ltd, giving my tenants notice of takeover of occupation and change of management, claiming that they bought the property on September 15, 2022,” he says.
When this publication contacted Ms Clare Tumwesigye, the head of Marketing and Corporate Communications at Equity Bank, she requested for more time to establish the actual facts about the matter.
“Equity Bank has really adhered to BoU directives in response to how to handle Covid loans, including for schools; so this kind of case is not unique. But this depends on the negotiations. I want to request that you give me some time so that I find out about Mr Higenyi’s case,” Ms Tumwesigye said by telephone yesterday.
“I know that the bank doesn’t just arrive at such a decision, there must be a reason why,” she added.
Mr Farouk Kirunda, the deputy Press Secretary to the President, last evening said he was still consulting on what remedies the head of State was going to give to the distressed businessman.
