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Museveni orders probe into Equity bank sale of Simbamanyo House

Simbamanyo House

Simbamanyo House

President Museveni has directed Attorney General, Kiryowa Kiwanuka, to probe alleged fraud in the purported sale of Simbamanyo House and Afrique Suites, prime properties that belong to businessman Peter Kamya.

In a September 3 directive, the president notes that “Peter Kamya and Dr Margaret Muganwa Kamya have appealed to me seeking for my intervention in the alleged illegal sale of the above-mentioned properties by Equity bank. They state that their properties were sold when there were cases pending in court and without a court order. This is to direct, that you urgently investigate the matter and render a legal opinion within one week,” reads the president’s letter.

It is unclear whether the Attorney General has completed the investigations after the expiry of the deadline on September 10.

BACKGROUND

Kamya is embroiled in a protracted legal battle with Equity bank, which purportedly sold the two properties on grounds that he failed to service a $10m loan.

However, Kamya contends in court that there were several illegalities in the loan process and that the subsequent foreclosure of his properties was marred with fraud.

Last month, Kamya and his Simbamanyo Estates filed a fresh suit challenging Equity bank’s sale of Simbamanyo House to Meera Investments owned by tycoon Sudhir Ruparelia for $5m while Luwaluwa acquired Afrique Suites for $4.3m.

DETAILS

In the plaint, Kamya says the bank breached its fiduciary duties when it illegally sold the suit properties and that there was collusion and connivance with the other defendants in actuating the unlawful sale and disposal of the suit properties and businesses.

Simbamanyo further says the market value of Simbamanyo House is $12m and that of Afrique Suits is $11m. Through his lawyers Muwema and Company Advocates and Kakuru and Company Advocates, Simbamanyo wants court to declare that Equity bank’s acts of selling and disposing of the suit properties was in the circumstances, in violation of the plaintiff’s right to redeem the mortgages.

Simbamanyo further wants court to declare that the advance payment of $1 million by Meera Investments to the Equity bank lawyers Katende Ssempebwa and Company Advocates to facilitate the impugned purchase of both properties before the auction date was a fraudulent and an illegal act.

“The plaintiff seeks a declaration that the purported sale of the properties on the October 8, 2020, and the concurrent transfer of the same properties to the second and third defendants by the fourth defendant vide an alleged auction, were all procured by dishonest conduct, fraud and is illegal."

Simbamanyo further contends that the sale and transfer the suit properties and businesses was in contempt of the court proceedings in an earlier suit which is pending hearing and final determination at the High court.

Comments

+2 #1 Daniel 2021-09-22 13:24
Lawyer Muwema, can you please allow the courts handle your clients' issues?

Why do you always want them determined by the uniformed court of the emotional public?
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+3 #2 Ugthinker 2021-09-22 13:31
Sudhir and his co-opted Uganda judiciary are a threat to anyone with property in Uganda!

Ugandans should take keen interest in Sudhir and his cartels.
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0 #3 kabayekka 2021-09-22 14:50
For heavens sake who of all the businesses in this country are not in real problems especially as a result of the constant lockdown of the country due to COVID19?

It seems that Peter Kamya is living on planet Mars with his profitable business and his banks!

It is all over the media that this NRM government is not financially sound to be able to help anyone that has been affected by the COVID19.

What of the children who up to now have never stepped in their classrooms for two years? And many of their private school buildings have been sold off because of overdue loan payments.

Peter Kamya and M7 are very lucky because they were the first to receive immunization against COVID19.

There are now about 20 million citizens in this country who are waiting now about 6 months to get vaccinated against this pandemic without any hope whatsoever!
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+3 #4 Lakwena 2021-09-22 15:27
According to the paradox of opposite; the more you have/accumulate, the more you can't protect from vermin, and the more you lose.

In other words, because of lack of moderation, many people spend their entire lives accumulating and taking care of things/properties; at the expense of their mental and physical health, and social relations.

Absurd! Hence oratorically, the Ancient Wisdom pose the question: what shall it profit a man/woman if s/he gains the whole world and lose the soul?

In other words, we only need what is enough for the short life we all have. Everything in excess, is a waste, which deprive others for the same need.
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+5 #5 Lakwena 2021-09-23 08:54
Quoting Ugthinker:
Sudhir and his co-opted Uganda judiciary are a threat to anyone with property in Uganda!

Ugandans should take keen interest in Sudhir and his cartels.


In other words Ugthinker, Sudhir is the Ugandan Gupta of South Africa, who swallowed the whole president Zuma; who is now languishing in the quagmire of corruption related imprisonment.

But he will one day pay a heavy price for the unscrupulous acquisition of other people's properties (greed).
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+1 #6 Zaitun 2021-09-23 16:48
Quoting Ugthinker:
Sudhir and his co-opted Uganda judiciary are a threat to anyone with property in Uganda! Ugandans should take keen interest in Sudhir and his cartels.


My dear, these are the very men and women who brought this dictator to power, buying all sorts of guns ammunitions and matchets etc. for him to take over power.

Now, we Ugandans have nothing to do. You saw how they came with a Pakistan boy of 30 yrs old as an expert with IMF to destroy the economy of the country.

Today, with their brother Museveni, we Ugandans have been shown the open door, exit.
As long as Museveni is alive, Uganda belongs to these gangsters who are all out to bring Ugandans to their knees.

The greatest problem with us Ugandans is that, when these guys give us a shilling, we tend to be content beyond mesure, without knowing that we shall continue repaying them through our nostrils.
Too good for those who brought them back!!
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