Owino land to be auctioned over Shs4b debt
What you need to know:
- The debt arose from a loan, which Owino Market vendors acquired from Dfcu bank in 2011
- Management of the market staked their 4.5 acres of land in Kisenyi suburb as the security for the loan.
- They were required to pay back the loan in five years.
- the vendors have failed to repay the loan and the bank has moved to attach their property to recover the money.
- The vendors have been appealing to government to urgently intervene before the bank sells off their land.
- Vendors, who spoke to Daily Monitor, expressed bitterness with the bank for being high-handed over the loan balance.
KAMPALA.
Court has ordered for the attachment and sale of property of Owino Market vendors for recovery of more than Shs4 billion in a bank loan.
“These are to command you to attach and sell by public auction at the time or date and subject to the conditions set out in the notification of sale to realize the sum of Shs4,468,934,349, the immovable property of the said judgment debtor, St. Balikuddembe Market Stall,” the order reads in part.
The order was issued by the Registrar of the High Court’s Execution Division Mr Muse Musimbi to Baingana Bailiffs and Auctioneers on August 23 this year.
The debt arose from a loan, which Owino Market vendors acquired from Dfcu bank in 2011 for the lease of land, on which the market sits, from Kampala Capital City Authority (KCCA).
Management of the market staked their 4.5 acres of land in Kisenyi suburb as the security for the loan. They were required to pay back the loan in five years.
However, the vendors have failed to repay the loan and the bank has moved to attach their property to recover the money.
On May 21, 2015, the market administration through St. Balikuddembe Market Stalls, Space and Lock-Up shops Owners Association (SSLOA), signed an agreement with DFCU bank. The two parties agreed that the market administrators would pay Shs 3billion within 90 days from the date of signing the agreement.
“…that in full and final settlement of this suit and all loan obligations of the plaintiff to the defendant, the plaintiff shall pay to the defendant a sum Shs 3b within the 90 days from the date of execution of this consent,” the agreement reads in part.
Since the issuance of the court order for attachment of the property, the vendors have been appealing to government to urgently intervene before the bank sells off their land.
In an interview with Daily Monitor yesterday, the Owino Market spokesperson, Mr Wilberforce Mubiru, admitted he had received the court order but said they owe the bank only Shs2b.
“We received the court order and when we read it to the vendors, they went out of control. However, we have asked Dfcu to give us one and a half years as we collect the money because out of the 10000 vendors, only 3200 have paid Shs1m each, which we asked every vendor to pay. 6000 vendors have paid half while 800 vendors haven’t paid any penny. If they give us more time, we shall be able to raise their money,” Mubiru said.
He added that they were still engaging the vendors to pay in order to save their land from auction. He said they had even met different government officials for intervention.
“We call upon well-wishers to come to our rescue because it hurts to lose such land, which was bought from the sweat of the vendors. We beg the President to talk to this bank to give us more time so that we could remit their money,” Mubiru said.
Asked about the Shs4b outstanding balance cited in the court order, yet he claims the vendors owe the bank only Shs2b, Mr Mubiru maintained his stand. He dismissed the Shs4b sum as a false claim.
This newspaper could not establish how much of the loan the vendors had deposited in the bank towards serving the debt. An official at the Dfcu bank head office at Kyadondo in Kampala, who declined to be named, said the bank cannot disclose details of their client’s transactions as it would contravene the banking laws.
“I refer you to the court order but as per now, I can’t delve into the details of our client,” the official said.
He also declined to say whether they would give the vendors more time to raise the owing loan balance.
Two weeks ago, Owino Market vendors stormed Dfcu bank branch on Kafumbe Mukasa Road, just opposite the market, and threatened to raze it down. The vendors accused the bank of failing to grant them more time to raise and pay back the loan.
However police intervened before the vendors could wreak havoc on the bank.
Vendors, who spoke to Daily Monitor, expressed bitterness with the bank for being high-handed over the loan balance.
“We have toiled for this land and now Dfcu wants to sell it off. Let them be fair because we shall pay them,” said Ms Zam Nansubuga, one of the vendors.
