Okello House put on sale over Shs25 billion loan

Okello House, registered under the ownership of Moyo Hardware, has been put on sale over a Sh25.5 billion loan advanced to Pioneer Easy Bus.
The property, which houses some operations of State House, has been the source of a long running ownership battle between Standard Chartered Bank and Alexander Okello, the owner of Moyo Hardware.

In a public notice published yesterday by Sebalu & Lule Advocates, the law firm representing Standard Chartered Bank, notified the public that the property would be sold if the owner fails to honour his debt obligation within 30 days.
“We shall proceed to sell the property … commonly known as Okello House, together with its development thereon, on as is basis, unless the debtor pays our client all the outstanding loan balance,” the notice reads in part.
The loan, according to the notice was advanced to Pioneer Easy Bus, the operators of a public bus transport company operating in the Kampala Metropolitan area.

Mr Okello, who had invited this reporter to his home for an interview in Mbuya, Kampala later turned hostile in the middle of the interview, claiming that the reporter had been sent to spy on him.

However, he had earlier said he had secured $7m (about Shs25.5b) to start Pioneer Easy Bus on the understanding that he would have full control of the bus operators’ finances and the company would make five of his children directors.
“They came to me with a plan to start a bus company. They only had $1m. They told me they needed money. That is how I staked my property [Okello House] to secure $7m on the understanding that they make five of my children directors in addition to [me] having full control of the company’s accounts,” he said.

However, Mr Okello said, the company back tracked on this before severing the relationship. Daily Monitor could not independently verify this claim as the interview was disrupted by two of Mr Okello’s family members.
“We don’t want anything published. I hope you are not recording this. Actually leave [our home],” one of Mr Okello’s daughters, whose name we could not readily establish, ordered this reporter before grabbing the mobile phone to delete the interview recordings and threatening to call police.

Asked why she would not want us to understand Mr Okello’s side of the story, she said the family had been through a lot and would first compose itself before inviting us for their side of the story.
“We shall call you after we have discussed this. So delete whatever you have been recording and leave,” she ordered.
Mr Albert Muganga, one of the Pioneer Easy Bus directors told Daily Monitor to get details of their discussion (while starting the company) from Mr Okello before promising to furnish us with more detail today.
In a telephone interview yesterday, Ms Cynthia Mpanga, the Standard Chartered Bank corporate affairs, brand and marketing, told Daily Monitor, she was not at liberty to discuss details of the loan and the pending sale.
“As you will appreciate, we are not at liberty to divulge any details about our dealings or transactions with our clients publicly, as all records and dealings are strictly confidential,” she said.
When contacted, an employee of Modpart Limited – the auctioning firm, who declined to be named, said Moyo Hardware, owned by Mr Okello, had failed to respond to a number of notices which left them with no option but to sell the property (Okello House).

He said the current occupants, State House, would not be affected in anyway.
Mr Don Wanyama, the senior presidential press secretary, yesterday said they would not stop the sale, adding: “If the new owner comes we shall sit with them and agree on the tenancy agreement.”

However, Mr Okello also claimed that State House had continuously violated the tenancy agreement in regard to rent payment, which had hindered his ability to service the loan.
Ms Lucy Nakyobe, the State House comptroller, dismissed the claim, saying they only owe Mr Okello rent of an equivalent of seven months.

“We have been paying [Mr] Okello $33,684 (Shs124.6m) annually and the only reason why we have not released money this year is because we were not sure who, between Mr Okello and Standard Chartered Bank, to pay since they all claim ownership of the building,” she said in a phone interview.
In 2009 Mr Okello lost one of his other properties - Amamu House – to Barclays Bank, which was later sold to Stellah Properties.

What pioneer says
More details. Mr Albert Muganga, one of the Pioneer Easy Bus directors, told Daily Monitor to get details of their discussion (while starting the company) from Mr Okello, promising to furnish us with more detail today. He referred us to the company secretary, who declined to discuss the matter.