Stanbic Bank has filed a notice of appeal in which it seeks to challenge a decision that implicated it and seven of its staff in an illegal transfer of a client’s mortgaged properties.
The ruling delivered by Justice Richard Wejuli Wabwire of the Commercial Division of the High Court las Friday, found that the seven staff including Mr Lawrence Kaweesa, Mr Allan Muhinda, Ms Daisy Nitwe, Mr Emmanuel Rukeeba, Mr Kenneth Kitungulu, Ms Maureen Kembabazi Katwebaze and Mr Thaib Lubega had created a sham company that they used to sell to themselves mortgaged properties belonging to Macdowel Food & Beverages, which had defaulted on a Shs1.065b loan.
In a notice filed last Friday, Stanbic, acting through Sebalu & Lule Advocates, said it was dissatisfied with the decision of Justice Wabwire, noting it would appeal the ruling in its entirety.
“Take notice that Stanbic Bank being dissatisfied with the decision of the Justice Richard Wabwire … intends to appeal ... against the whole decision,” the February 12 notice, reads in part.
It was not yet clear whether Myriad Investment Club, which together with Stanbic were accused of circumventing the law to illegally dispose of properties, will also appeal.
Stanbic was sued together with Myriad Investment Club in a case in which Macdowel Food & Beverages accused the duo of connivance to illegally dispose of titles of properties deposited with Stanbic as collateral for a loan.
The loan, which had been advanced on October 14, 2017, had been a subject of default, forcing Stanbic in early 2019 to seek disposal of five plots comprised in plot 7, 3, 4, 5 and 6 Works Close in Luzira, Kampala to recover its money.
The properties were subsequently sold to Myriad Investment Club. But according to court documents, Macdowel Food & Beverages petitioned court, claiming that Stanbic had connived to dispose of properties to a company whose directors were its employees.
In a 22-page ruling, Justice Wabwire agreed with the applicant, noting Stanbic staff had on had on February 3, 2020 “opportunistically incorporated a sham company ... with a hidden motive of purchasing securities”, which Macdowel Food & Beverages had deposited with Stanbic as collateral.