Ex-MP Mbabaali secures caveat to block sale of his properties over loan

Former Bukoto South legislator, Haj Muhammad Muyanja Mbabaali has secured a caveat to stop the sale of his multi-billion properties over a loan.

Through his lawyers, Haj Mbabaali ran to court to following notices by bailiffs aiming to auction his properties.

In a caveat issued by the High Court of Uganda (commercial division), bailiffs acting on orders of Diamond Trust Bank are ordered to halt the exercise of disposing of Haj Mbabaali’s properties since ‘‘it did not furnish accounts in the manner and the time ordered by court and is in breach of the said court order and in utter contempt of the authority of the High Court of Uganda- making illegal and contemptuous moves to sell off the properties despite pendency of court proceedings intended to determine the Bank’s high-hand and illegal dealings including the failure to render accounts for MFK Corporation Ltd.”

According to court documents, DTB was first asked to avail the information on February 26, 2021 and failed to act.

DTB through their lawyers, MMAKS Advocates and Trust General Auctioneers and Court Bailiffs had advertised in the media that they were going to dispose of at least five commercial buildings and prime plots of land in Kampala, Mpigi and Masaka city claiming that MFK Corporation company and its proprietor Haj Mbabaali who had obtained a loan from the bank had failed to settle the debt.

Some of the properties include; LRV 3657 Folio 6, Block 253 Plot 34 at Nkozi Trading Centre in Mawokota, Mpigi District, which is registered in the name of Muhammad Muyanja Mbabaali, a commercial building on Plot 39 Kampala Road in Masaka City, sitting on 0.093ha, which also houses a DTB branch, LRV 1537 Folio 7 Plot 54, Block “B” Ntinda, Kampala- among others. The bailiffs had planned to commence sale of the properties on August 17, 2021. 

 “Let all be aware that the said dealings with the said properties involving Diamond Trust Bank (U) Ltd under the given circumstances are illegal and shall obviously be put under scrutiny of court authority,” courts said.

Mr Patrick Mugisha, one of the lawyers of MFK Cooperation Limited, said they were surprised by the bank’s intent to auction the properties without honouring legal formalities.

“The court had given them two weeks to furnish us with the account details, but they failed to do this. Instead, they moved to instruct bailiffs to attach and auction the property.  At least we have secured a caveat that will help us stop this,” he said.