UGANDA, Kampala | Real Muloodi News | Former investment state minister, Haji Muyanja Mbabali, has surrendered his commercial buildings in Masaka and Kampala cities to Diamond Trust Bank (DTB) to settle a long-standing mortgage conflict.
Mbabali’s decision aims to settle the dispute with the bank out of court.
DTB had initially listed several Mbabali properties in the districts of Kampala, Wakiso, and Mpigi for attachment and auctioning over loan default issues.
However, Mbabali had petitioned the court to halt the process, alleging that it was not genuine.
Background
DTB had attempted to take over the prime commercial Zamo Building located on the Masaka-Kampala road and other properties in Kansanga over loan-related conflicts.
However, the Masaka City security committee halted the exercise over procedural errors.
On November 28, 2022, DTB made a second attempt to secure the building located on Kampala Road in Masaka city, but it failed.
To settle the loan, Mbabali eventually agreed to surrender two buildings in Masaka and Kampala.
Although Mbabali confirmed the decision to surrender the buildings, he declined to give further details. Kavuma and Luzige Company Advocates, which represented Mbabali, officially received the consent decree dated January 18, where the two parties settled the matter amicably under closed-door terms.
The Masaka City security committee had halted DTB from taking over the building, citing the pending related petition filed by Mbabali in the Court of Appeal.
In a letter dated November 28, 2022, addressed to the Inspector General of Police, the legal team from Luzige, Lubega, Kavuma, and Company Advocates stated that the intended eviction of their client was illegal.
In conclusion, former investment state minister Muyanja Mbabali has surrendered his Zamo commercial buildings in the cities of Masaka and Kampala to Diamond Trust Bank to settle a mortgage multi-billion property conflict.
DTB had initially listed several of Mbabali’s properties for attachment and auctioning over loan default issues. Mbabali had earlier petitioned the court to halt the process on grounds that it was not genuine.
Eventually, Mbabali agreed to surrender two buildings in Masaka and Kampala, and the matter was settled amicably under closed-door terms.
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