Habib Kagimu, Stanchart in Shs9.7b property row

Kampala.

Standard Chartered Bank has put on sale three properties belonging to businessman Habib Kagimu over a Shs9.75b ($2.6m) debt.
However, in an interview yesterday, Mr Fred Muwema, Mr Kagimu’s lawyer, contested the figure, saying his client was only aware of Shs7.5b ($2m), adding they have already contested the figure in court.
In a public notice published yesterday, the bank, acting through Kampala Associated Advocates, said they will proceed to sell three of Mr Kagimu’s properties in Kololo, Bugolobi and on Sir Apollo Kagwa Road if the businessman does not clear the money due to the bank.
“We shall proceed to sell by public auction the properties mentioned and all developments … unless the borrower pays all the monies owed,” the notice reads in part.

Second time advertised
This is the second time Mr Kagimu’s properties have been advertised in less than three months. In February, a similar notice was published and listed the above properties, saying they would be sold within 30 days.
However, Daily Monitor could not establish why the sale had not been executed three months later.
Mr Muwema of Muwema & Company Advocates, yesterday said the debt is still under dispute, adding that court was yet to dispose of the matter.
“The matter is still in the High Court. Those people keep advertising the properties. We are going through a process of auditing and reconciling the figures. There are challenges on the amount of interest charged and some figures on the statement which can’t be explained,” he said.
In January, Forbes listed Mr Kagimu as one of the richest businessmen in Uganda, saying he had accumulated much of his wealth through petroleum distribution.
The magazine, which ranks the world’s wealthiest business people across the globe, also said he has interests in real estate development, telecommunications, security and agriculture managed through Habib Investments as the holding company.
Yesterday Mr Muwema said they would challenge any intended sale, adding that Standard Chartered Bank had failed to execute a guarantee from another bank, which had intended to clear the debt.
He also revealed that the loan had been secured through Habib Oil to supply petroleum products to government that had delayed to pay.
“The [delay] has brought problems. If government does not pay, it becomes difficult for our client to service the debt,” he said.
Ms Cynthia Mpanga, the Standard Chartered Bank corporate affairs, brand and marketing manager, declined to divulge details of the loan, saying dealings between the bank and its client were confidential.
“As you will appreciate, we are not at liberty to divulge details about our clients’ transactions as all records and dealings are strictly confidential,” she said.
Until the death of Col Muammar Gaddafi in 2011, Mr Kagimu had been a strong link between Libya and President Museveni’s government.
A number of business people have been struggling to service debts amid slowed growth and a tough business environment.
According to data from Bank of Uganda, the rate of non-performing loans has been rising, which signals high default rates.
For instance, BoU data shows, non-performing loans increased to 7.2 per cent from 6.2 per cent in 2017.