• Sun. Jan 29th, 2023

UGANDA, Masaka Real Muloodi News | UPDATE: December 5, 2022 The High Court in Masaka has dismissed an application by former state minister for investment, Hajj Muhammad Muyanja Mbabaali, seeking to block the takeover of his properties by Diamond Trust Bank (DTB).

Hajj Mbabaali had on November 24, 2022, through his lawyers, sought a temporary injunction to restrain DTB, Robert Ssekigye, and Commissioner Land Registration, and their agents from disposing of the buildings.

However, the following day the Masaka Deputy registrar Julius K. Borore dismissed the application, saying the matter had been overtaken by events.

“The application No.235 of 22 seeking a temporary injunction restraining the respondents from dealing with the suit property comprising LRV 2985 Folio 20 Plot 39 be and it’s hereby dismissed because it has been overtaken by events and decisions at the Commercial Court vide Misc. Cause No.080 2022,” he said in ruling dated November 25.

The thrown-out application leaves Hajj Mbabaali’s fight to recover his properties that are being taken over by DTB after reportedly failing to clear a loan he acquired from the bank, unlikely to succeed.

Original Article: November 29, 2022:

Masaka City security team has halted the takeover of the Zamo Building by Diamond Trust Bank (DTB) over a defaulted loan worth billions by the former Bukoto South County Member of Parliament Muhammad Muyanja Mbabaali, the structure owner.

To prepare the Zamo Building on Kampala Road in Masaka City for the transfer of ownership to a new owner, private security company HASH hired by DTB invaded the building on November 24, 2022, a Thursday night.

Upon receiving orders from the Masaka City Security Committee, police from the Masaka Central Police Station sprung into action and ordered the private security guards to leave the premises, alleging procedural errors.

As a result, the DTB’s takeover of the facility was short-lived.

Background

In 2021, DTB announced in the media that they would sell at least five of Hajj Mbabaali’s commercial properties, including prime pieces of land in Kampala, Mpigi, and Masaka City.

They claimed that the company MFK Corporation and its owner Hajj Mbabaali, who had obtained a loan from the bank, had failed to pay off the debt.

There were several properties listed for sale that were registered in the name of Hajj Muhammad Muyanja Mbabaali, including LRV 3657 Folio 6, Block 253 Plot 34 at Nkozi Trading Centre in Mawokota, Mpigi District, a business on Plot 39 Kampala Road in Masaka City that sits on 0.093ha, and LRV 1537 Folio 7 Plot 54, Block “B” Ntinda, Kampala.

On August 17, 2021, the bailiffs intended to start the auction of the properties.

Hajj Mbabaali went to court to stop the sale of his assets worth billions of shillings, nevertheless, after receiving letters from bailiffs intending to auction his possessions.

Since the bank had neglected to provide the court with accounts of all financial activities and money about MFK Cooperation Ltd., he was able to get a caveat from the High Court of Uganda (commercial division) directing the bailiff serving under DTB’s instructions to stop the process.

All assets that MFK Corporation Ltd. claims to have transferred to it as securities.

Who Bought Zamo Building During Auctions?

However, the bank went ahead and sold the Zamo Building at auction to Masaka businessman Mr Robert Ssekigye, who then requested that DTB give him proof of possession of the building.

To make room for the acquisition, DTB relocated its Masaka Branch, which was based in the structure, to a new location along Elgin Street in October 2022.

Early in November 2022, DTB wrote to the police requesting protection services for all the properties in question through its attorneys, MMAKS Advocates.

A letter from police headquarters dated November 21, 2022, addressed to the Greater Masaka Regional Police Commander and signed by the Commissioner of Private Security Organisations and Private Firearms, Mr Charles Ssebambulide, gave the RPC instructions to oversee the deployment of private security guards at the contentious building.

He was also instructed to ensure that at least two armed guards were deployed.

However, security guards had surrounded the Zamo Building by Friday morning, November 25, 2022, leaving the tenants and business owners stuck.

Premier Credit, a financial organisation that provides loans, advocacy offices, and other companies are some of the tenants that were affected.

The owner of Xander Advocates, Mr Alexander Lule, claimed that due to the inability of both his personnel and clients to enter the office, business activities had been put on hold.

“I had a matter in Kalangala and Masaka courts but I cannot access my office. This siege has a great impact on my clients and my work, and we are suffering because of the bank, and the owner of the property who are still in court battles,” he added.

To prevent DTB, Robert Ssekigye, Commissioner Land Registration, and their agents from selling the buildings, MFK Cooperation Limited has recently returned to court, according to one of the firm’s attorneys, Patrick Mugisha.

“We are hopeful that the court ruling will be in our favour because the respondents disposed of the property irregularly. We had secured a court order stopping them from proceeding with the transaction but they adamantly went ahead and sold them off,” he added.

Mr Ssekigye demanded that the disputing parties resolve their differences and deliver his property if they didn’t, the bank would return his money.

He would not, however, say how much he paid for the structure.

READ MORE LIKE THIS:

Ex-MP Muyanja Mbabaali in Trouble as Auctioneers Put Five Properties on Sale

Ex-MP Muyanja Mbabaali Secures Caveat to Block Sale of His Properties