President Yoweri Museveni has advised the former owner of Ssimbamanyo House, Peter Kamya to go and seek other court remedies since he found out that its indeed true the businessman had defaulted on the loan repayment agreement.
Last year, Equity bank seized Simbamanyo House and Afrique Suits Hotel on Mutungo Hill in Kampala after tycoon Kamya and his Simbamanyo Estates failed to pay outstanding loans to a tune of $10.8m (about Shs40 billion.
Although he went to court, his case was dismissed with cost and as a way of seeking help, Kamya penned down a letter to President Museveni pleading for his intervention. Definitely, the President heard his cry and in September he directed the Governor of the Central Bank Emmanuel Mutebile to investigate the circumstances under which the bank sold off the two buildings in what Kamya says it was a giveaway price.
In his September 3 letter to Governor Mutebile, Mr. Museveni indicated that he had been approached by Mr. Kamya and his wife Margaret Muganwa to intervene in regard to the sale of Simbamanyo House and Afrique Suites by the bank.
“They state 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. That they had even offered to get their own buyers but all their attempts were frustrated,’ Museveni said.
However after an investigation by BoU, a letter dated 25th October 2021 was sent to President Museveni by Mr Mutebile together with the Attorney General Kiryowa Kiwanuka advising him that Equity Bank’s move was legal and the matter was properly settled.
After Mutebile’s response, President Museveni wrote an advisory letter to Kamya telling him to seek other court remedies.
“Following the receipt of your complaint to me about the illegal sale of your properties by Equity Bank, I directed the Attorney General and the Governor of the Central Bank to investigate the complaint and report back.I have since been advised that the sale was legal since you had defaulted on the payment of loans and did not deposit the 30% of the loan amount as was ordered by the court. They have further advised me that you are at liberty to pursue other court remedies,” reads the President letter.
According to an interview Mr. Kamya did with one of the local newspapers, he said he was not challenging the sale of the property but the process.
He further said that he needs to meet with the president to tell him the whole story.
Simbamanyo House was sold to businessman Sudhir Ruparelia.
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