UGANDA, Kampala | Real Muloodi News | Hajj Muhammad Muyanja Mbabaali, the former Bukoto South Member of Parliament, has secured a caveat stopping the sale of his multi-billion properties over a bank loan.
Through his lawyers, ex-MP Muyanja Mbabaali sought relief in court, following notices by court bailiffs aiming to auction his properties in Kampala, Mpigi and Masaka city.
In a caveat issued by the High Court of Uganda (commercial division), they ordered bailiffs acting on orders from the Diamond Trust Bank (DTB) to stop the exercise of disposing of Mbabaali’s properties.
According to the ruling, ‘[DTB] did not furnish accounts in the manner and the time ordered by court, and is in breach of the said court order and in utter contempt of the authority of the High Court of Uganda – making illegal and contemptuous moves to sell off the properties despite pendency of court proceedings intended to determine the Bank’s high-hand and illegal dealings, including the failure to render accounts for MFK Corporation Ltd.”
According to court documents, DTB was tasked to avail the information on February 26, 2021, but failed to act.
On July 15, DTB bank, through its lawyers, MMAKS Advocates and Trust General Auctioneers and Bailiffs, placed an advertisement in the media. The lawyers and auctioneers warned they would proceed with selling at least five commercial buildings and prime plots of land in Kampala, Mpigi and Masaka city to pay off the loan.
The lawyers and court bailiffs claimed that MFK Corporation Company and its proprietor, ex-MP Mbabaali, had failed to settle the loan he got from the bank.
Some properties in question include; a building in Mpigi district, two apartments in Ntinda and Kyadondo, an apartment on Plot 39 Kampala Road in Masaka City, and a Residential House in Kisugu, Kampala and others.
The court bailiffs had planned to proceed with the sale of the properties on August 17, 2021.
“Let all be aware that the said dealings with the said properties involving Diamond Trust Bank (U) Ltd under the given circumstances are illegal and shall be put under the scrutiny of court authority,” the court stated.
Mr Patrick Mugisha, a lawyer at MFK Cooperation Limited, said the Bank’s intention to auction ex-MP Mbabaali’s properties without honouring legal formalities surprised them.
“The court had given them two weeks to furnish us with the account details, but they failed to do this. Instead, they moved to instruct bailiffs to attach and auction the property. At least we have secured a caveat that will help us stop this,” Mugisha said.
Ex-MP Mbabaali landed on a debtors’ blacklist after failing to repay loans to creditors, which accumulated in the 2021 general elections during his political campaigns.
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