UGANDA | MBABALI | BANK | PROPERTY

Former investment state minister Haji Muyanja Mbabali has surrendered his Zamo commercial buildings in the cities of Masaka and Kampala to a commercial bank in a swap deal to settle a mortgage multi-billion property conflict. 

Mbabali’s decision is aimed at settling a long-standing dispute he has been having with the Diamond Trust Bank (DTB) out of court. 

When contacted on phone today, Mbabali, who is also the former Member of Parliament for Bukoto South in the Lwengo district, confirmed the decision but declined to give further details. 

"It's true I withdrew all court cases against DTB and the matters have been settled. Other details are with my legal team," he said. 

Kavuma and Luzige Company Advocates, which represented Mbabali, officially received the consent decree dated January 18 where the two parties amicably settled the matter under the closed-door terms. 

Background 

DTB had initially listed several Mbabali properties in the districts of Kampala, Wakiso, and Mpigi for attachment and auctioning over loan default issues. However, Mbabali petitioned the court to halt the process on grounds that it was not genuine. 

DTB had made two attempts to take over the prime commercial building on the Masaka-Kampala road and Kansanga in Kampala over the loan-related conflict. However, the Masaka city security committee, led by division Resident City Commissioner Mastulah Naaza halted the exercise over what it called procedural errors. 

On November 28 last year, DTB through the Kampala General Auctioneers made a second attempt to secure the building located on Kampala Road in Masaka city which flopped. 

Mbabali finally agreed to surrender two buildings in Masaka and Kampala in a move aimed at settling the loan. 

Masaka city security committee had halted DTB from taking over the building citing the pending related petition filed by Mbabali in the Court of Appeal. 

In a letter seen by New Vision dated November 28 addressed to the Inspector General of Police, the legal team from Luzige, Lubega, Kavuma, and Company Advocates stated that the intended eviction of their client was illegal.