UGANDA, Kampala | Real Muloodi News | Days after tycoon Mathias Magoola of Dei BioPharma Uganda Ltd welcomed President Museveni to launch the Dei Biopharma production site in Matugga, creditors are demanding that the company’s properties be sold to pay off debts.
A commercial bank has already advertised two of the company’s prestigious properties in an attempt to recoup billions of shillings in outstanding unpaid loans acquired by Magoola for Dei Biopharma Development Ltd.
The prime properties that the company stands to lose in the next 30 days are located in Matugga.
The first is located at Kyadondo Block 82, Plots 1081 and 1082, and it covers around 51 acres of land. It is around 4.4 kilometres from Matugga town, close to the major road.
The second valuable Dei BioPharma property is close to the recently constructed production facility, situated in the Matugga industrial zone. It is around 9.5 acres and is currently under development.
“We have been duly instructed by our client, a Financial Institution, which is the registered mortgagee, to advertise and sell by Private Auction/Private Treaty the Property described below to recover the outstanding loan balance, our fees and all other costs. The Owner/owners are hereby notified that unless full payment to our client is effected within 30 days from the date of this advert, the property described below shall be disposed of to recover our client’s money,” reads an advertisement in the New Vision newspaper dated Monday 5th December 2022 by Kaweesi and Partners Advocates.
About Dei BioPharma Uganda Ltd
Dei BioPharma Uganda Ltd. was established in Uganda in January 2014 as a medical and foods (nutraceuticals & pharmaceutical) research company. The company is a producer of medications, food supplements, and cosmetics.
The company’s pharmaceutical facility, which President Museveni officially launched in October of this year, will produce high-quality yet reasonably priced pharmaceuticals across a range of therapeutic medications, including cancer and malaria drugs, which will benefit millions of families throughout Africa.
Magoola’s Dei Biopharma Development Ltd developed the manufacturing plant through partnership investment from the Equity Group.
For construction, the acquisition of high-tech machinery and medical equipment, as well as working financial assistance, Equity Bank supplied up to US$100 million, while Uganda Development Bank (UDB) contributed US$20 million.
It is unclear which financial institution has initiated the debt recovery process.
More Debts for Magoola
Magoola is also engaged in litigation with former Minister Isaac Musumba on a dispute of USh268 billion.
In a judicial battle, Musumba had defended Dei Minerals International, whose clients sought US$241 million in damages (about USh700 billion).
Magoola must pay Musumba USh268 billion as 30% of the agreed-upon amount that he and his Dei Minerals International company are anticipated to get from the UK-India-based Videocon Industries Ltd as compensation for breach of contract.
Another USh4 billion arbitration dispute involving Mutoni Construction (U) Limited, the South African firm that Magoola hired to construct the pharmaceutical production facility, is ongoing between Mutoni Construction and Magoola’s Dei BioPharma Uganda Ltd.
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