Prime
Govt primary school up for sale over loan
Information about Equity Bank’s intention to sell off Wobulenzi Public School to an interested property buyer first came up in May. PHOTO/ DAN WANDERA
What you need to know:
- Information available to the police Criminal Investigations Department and shared with the Luweero District authorities indicates that while the officials acquired the Shs100m, only Shs62m was paid back to the bank.
A plan by a commercial bank to take over a public primary school in Luweero District over a loan, has sparked anger and fear among a section of stakeholders.
Information about Equity Bank’s intention to sell off Wobulenzi Public School to an interested property buyer first came up in May.
Mr Joseph Ssebayiga, a parent who had a son in Primary Seven at the school, said the message delivered home by his son was very scary.
“My son said the bank had taken over their school. The bank officials came to the school and wrote on the gate wall that the school was on sale. Thus are now property of the bank, one of the teachers reportedly told the Primary Seven candidates. The timing of the bank message was bad,” he said in an interview yesterday.
Ms Brenda Nabukenya, the Luweero District Woman MP, said she had closely been following developments at the school and believes that the actions undertaken by Equity Bank are harsh and possibly illegal.
“You cannot put a government institution on sale without exploring all the due processes. Something went wrong and all individuals involved must be brought to book,” she said.
Not right
Luweero Resident District Commissioner Richard Bwabye said despite Equity Bank having a genuine claim over the school properties, it should not interfere with the school’s normal operations .
“It is true that the school management in 2019 acquired a loan amounting to Shs100m payable in a period of six academic terms (two years) . As we were trying to see how the issue can be resolved, the bank went ahead to claim that the school, which has a population of more than 2,300 pupils, is now its property. This is unfortunate,” he said.
He said the school administration at the time made a mistake to mortgage a government property.
“Government property cannot be mortgaged by individuals to any other institution without going through the right procedures,” he said.
This publication has learnt that the school management reached out to Equity Bank in 2019 and acquired a loan of Shs100m for purchase of a plot of land. The piece of land was meant for construction of teachers’ houses and the loan was supposed to be paid between 2019 and 2021. When the school closed during the first Covid-19 induced lockdown in March 2020, the loan had reportedly accumulated to Shs156m when the schools reopened in 2022.
Shocked
The current head teacher, Mr Michael Kintu, said he assumed office in 2021 when the school was already servicing the loan. However, he said, he was shocked when the bank agents declared the school as a bank property.
“This came in the last week of the preparation for the Primary Leaving Examinations where a total of 243 candidates were to sit the exams. Fortunately, we communicated to the district about the development,” he said.
Information available to the police Criminal Investigations Department and shared with the Luweero District authorities indicates that while the officials acquired the Shs100m, only Shs62m was paid back to the bank.
“We have since realised that part of the money borrowed was not put to the right use because the person who sold the plot to the school was still demanding his balance. It is irregular that the plot was never cleared in full yet the Shs100m was meant to pay for the land,” Mr Bwabye said. He added that the team that was in charge of the school including the former head teacher and school management have reportedly committed to clear the balance as individuals.
Ms Barbara Among, the Equity Bank communications manager, said the bank is exercising its right to sell the property to recover depositors’ money.
