We shall sell disputed assets, Equity notifies Simbamanyo

Simbamanyo House on Lumumba Avenue . PHOTO | COURTESY

By Dorothy Nakaweesi
Equity Bank, acting through Katende Ssempebwa & Co Advocate and AF Mpanga, Advocates, has said it will after October 7 proceed to sell properties contained in plots on Lumumba Avenue and Mutungo-Luzira, both within Kampala if Simbamanyo Estates fails to pay Shs11.5b.
In a notice published yesterday, Equity Bank said Simbamanyo had until October 7 within which it must pay at least 30 per cent of the disputed Shs38.6b, failure of which it will proceed to sell properties against which the money was advanced.
Simbamanyo had at the close of last month put a caveat on the disputed properties, noting Equity Bank was trying to upstage the court process in which it is challenging the sum in dispute and the legality of loans drawn from Equity Bank Kenya.
Simbamanyo is embroiled in a property dispute with Equity Bank Uganda and Equity Bank Kenya resulting from unpaid loans that had been advance to the real estate company.
A notice yesterday Equity said: “All potential buyers, tenants and occupants of the properties [contained in on Lumumba Avenue and Mutungo-Luzira] are informed that if Simbamanyo does not pay to the bank the 30 per cent as ordered by court, public auction of the mortgaged properties will take place on October 8.”
The plots currently have developed properties, including Simbamanyo House, which houses Gender Ministry on Lumumba Avenue and Afrique Suites Hotel in Mutungo-Luzira.
The notice followed a ruling in which the High Court on Monday upheld Simbamanyo’s prayer to stay the sale of the disputed properties, which Equity Bank had indicated in two separate notices on August 7 and August 11 would auction to recover outstanding sums.
However, court ruled that to prevent the intended auction, Simbamanyo must pay at least 30 per cent of the disputed amount.

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