‘Sale Of Simbamanyo Building Was Legal But You Are At Liberty To Pursue Other Remedies’- Museveni Nails Ex Proprietors

President Yoweri Kaguta Museveni has advised Peter Kamya and Dr Margaret Muganwa Kamya, the proprietors of Simbamanyo House and Afrique Suites to seek court redress on the sale of the two properties.

In a 25th October 2021 letter to Kamya, copied to the Attorney General, Ministry of Justice and Constitutional Affairs and the Governor, Bank Uganda, the President states that after directing an investigation and getting the report back, he found the sale legal.

“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, bank of Uganda 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 the loan and did not deposit #0% of the loan amount as was ordered by Court,” the President said, adding:

“They have further advised that you are at liberty to pursue other remedies in court.”

Talking to the New Vision on Saturday, Kamya said he was set to challenge the process through which the bank sold his properties.

“My issue was not the sale of my property, but the process the bank took to sell them. It didn’t sell them according to the mortgage law. They should have given me the option of getting a buyer at a fair price,” Kamya said, adding that he intended to meet the President again and explain his side of the story.

In September, President Museveni, in a letter, directed the Bank of Uganda Governor, Prof. Emmanuel Tumusiime Mutebile, to investigate the foreclosing of properties, belonging to Architect Peter Kamya of Simbamanyo Estates Ltd.

In the 3rd September 2021 letter (Reference No. PO/19), titled “Claims Of Illegal Sale Of Simbamanyo House And Afrique Suites”, the President informs the Governor that Mr. Peter Kamya and Dr. Margaret Muganwa, his wife, had appealed to him to intervene in the matters regarding the sale of his Sibamanyo House and Afrique Suites by Equity Bank.

“They (Mr & Mrs Kamya) 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. This is, therefore, to direct that you expeditiously investigate the matter and report back within one week,” President Museveni wrote to the Central Bank Governor.

UGX1.3b legal costs

Last week, the Commercial Court in Kampala ordered Simbamanyo Estates Limited and proprietor Peter Kamya to pay UGX1. 3 billion worth of legal costs to Equity Bank Uganda and two other companies.

Court documents indicated that court registrar Elias Kisawuzi ordered Simbamanyo and Kamya to pay UGX600 million to Equity Bank, UGX300 million to Meera Investments Limited and UGX300 million to Luwaluwa Investments Limited.

Court also dismissed six cases earlier filed by Simbamanyo Estates and Peter Kamya. The two wanted the sale and transfer of Simbamanyo House and Afique Suites, cancelled by court.

In October Last year, the Court of Appeal in Kampala dismissed with costs, an application by administrators of Simbamanyo Estates Limite in which they wanted the auctioning of its prime properties in Kampala which was meant for Equity Bank Ltd to recover outstanding loans worth $10.8 million (Shs40 billion) to be halted.

Leave A Reply