City businessman and Former Bukoto South Member of Parliament, Hajj Muyanja Mbabaali has kicked off a fresh battle with Diamond Trust Bank (DTB) on allegations that the bank wants to unlawfully auction his properties over shs 7 billion debt.
According to Mbabaali, DTB insisted that he purchases a hostel at UGX 7 billion despite his account balance being UGX 1 billion. He explains that the bank suggested that it was a good deal before alleging that it was overvalued.
“I was a customer for DTB and they are my clients at Masaka for the last 10 years. One day they came to me with a business deal that there was a hostel being sold at UGX. 7 billion. My account had UGX. 1. billion but they insisted on me buying, I insisted on not buying the idea but they suggested it was a good deal,” Haji Mbabaali says.
The Daily Express understands that the restless Mbabaali was this week given a 30-day ultimatum to pay up all his debts or risk losing five of his properties situated across Kampala, Masaka, and Mpigi districts. The notice also called on all occupants to vacate premises within fourteen days from the date of notice.
”Mind you, they overvalued the property. And that is the genesis of all this crisis. After learning that the hostel was unproductive and no money is being generated from it, they resorted to attaching my property and the matter has been in High Court since early this year” He added.
Mbabaali, who revealed that the matter was before High Court said that the rush to auction his property is not necessary.
Other properties belonging to the businessman are located in Mawokota – Mpigi sitting on 2.153 hectares, another flat is located in Masaka Municipality, another one in Kyadondo, Kampala. There are two flats located in Ntinda and Kisugu.
Although the notice makes no mention of what Mbabali used the loan for, cases of MPs losing property after losing elections in Uganda are rife because of uncontrolled expenditure by candidates.
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