Companies fight over tycoon Ssebggala’s property

KAMPALA. Court has temporarily stopped the sale of property belonging to a prominent city businessman which he used as collateral for a Shs5 billion loan.
High Court on Friday issued a temporary order stopping Stanbic Bank from selling three posh houses belonging to city tycoon Meddie Ssebaggala over a debt of Shs2b after another private company, Equinox International Limited, which also wanted to sell one of the houses over a Shs3b debt, protested the sale.
In 2013, Mr Ssebaggala had his biggest electrical giant shop, Ssebaggala and Sons Electro Centre confiscated by city tycoon Sudhir Ruparelia.

Although the interim order presented a respite for Mr Ssebaggala, the bank’s intention is to sell his disputed Kololo house.
Sunday Monitor understands that on Friday evening, the deputy Registrar Alex Mackay Ajiji at the request of Equinox International Ltd, issued an interim order in the presence of Mr Mohammed Ssebaggala, the managing Director of Ssebaggala and Sons Electro Centre.
The court order also restrained Ssebaggala and Sons from selling or disposing of the disputed assets until May 29 when the substantive suit will be heard and disposed of.
On April 18, Equinox International Ltd filed a petition for winding up/ liquidation of Ssebaggala and Sons.
The company is challenging Stanbic Bank for attempted sale of the Kololo house after getting information that the bank had put a notice advertising the sale the Kololo house in Daily Monitor of March 29. The notice expired on April 28.

Affected property
Apart from the Kololo house, Stanbic Bank was to sell two of Ssebaggala’s houses, one a residential banglow at Bbunga Hill on Kyadondo Block 250 plot 514 where one of Ssebaggala’s wives, Ms Mariam Ssebaggala resides. The other house up for sale is at Nsimbiziwoome in Bukoto, Kyadondo Block 216 plot 1827.
Sunday Monitor understands that Stanbic Bank through its lawyers M/s Nangwala, Rezida & Co Advocates first lent Ssebaggala Shs2 billion on September 2008.
Shortly after he had paid Shs42 millions of this loan, Ssebaggala was given another loan of Shs1.2 billion promising to pay Shs51. 4 million, including profit every month in the period of 192 months.
This amounted to Shs9.8 billion and the mortgage of the three houses.
Court documents show that on July 6, 2015, the tycoon asked for an extra three weeks to pay Shs1 billion, a commitment he allegedly failed to fulfil.
This was two years after Sudhir confiscated the Ssebaggala and Sons electro shop in Kiyembe through his former Crane Bank. The shop is currently run by Ken Associates.

With these problems, Ssebaggala who has been in electricity business for about 35 years, was forced with the advice of his other tycoon brother only identified as Mr Ntege transferred his business to Bbunga.
Counsel Patrick Bugembe who represented Equinox International Ltd from M/s Lutakoome & Co Advocates told Sunday Monitor after receiving the interim order that “if my client wins the case, Ssebaggala may have some relief because the Kololo residence they want to sell gives us the amount required because it is very expensive basing on its location.”
However, our attempts to reach Mr Ssebaggala by his know mobile phone number were futile as he did not pick our repeated calls.

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