Katto And Son File For Bankruptcy

Nov 28, 2001

THE Katto family has applied to High Court for a declaration of bankruptcy, saying it is faced with “mounting financial obligations” relating to the closure of the International Credit Bank and Smartmoney Card Centre.

BY Mariam Nakisekka and Milton Olupot THE Katto family has applied to High Court for a declaration of bankruptcy, saying it is faced with “mounting financial obligations” relating to the closure of the International Credit Bank and Smartmoney Card Centre. The Katto family, former owners of the defunct ICB, media houses and real estate, yesterday said they want the High Court to appoint an official receiver to help them manage their family financial obligations. The ICB executive director, Thomas Katto, and his son Patrick Katto, the managing director, in a statement yesterday, said, “This decision is taken against the background of mounting financial obligations associated with and arising out of the closure of the ICB Limited and Smartmoney Card Centre in September 1998. “We believe that in the prevailing circumstances, it is prudent that a professional person be obliged to manage our personal financial portfolio. The law provides that this can be done in accordance with the Bankruptcy Act.” Bank of Uganda took over management of ICB on September 18, 1998 over what it described as “activities detrimental to depositors.” ICB was one of the three banks that were investigated on the orders of the Bank of Uganda. The probe said ICB management was responsible for the collapse of the bank. The bank, then housed on Katto Plaza on Nkrumah Road in Kampala, had assets of sh25b. A report from the Auditor General said government ministries, departments, parastatals, and local and urban authorities lost over sh17b when the bank closed. The AG recommended that should the assets of ICB fail to meet the creditor’s demands, the veil of Incorporation should be lifted and the personal property of the directors attached and liquidated. The directors were Thomas Iyamulemye Katto, Patrick Katto, Mariam Mukankusi Katto, Chris Marimanya and Sam Baingana. Several properties, including the Katto Plaza, have been sold. The family also sold their media houses, Radio Sanyu and Sanyu Television. BOU also confiscated Thomas Katto’s sh250m S500-Class Mercedes Benz. ICB introduced to Uganda the Smartmoney technology used by government and embassies. The State is thought to have lost up to sh500m in the fuel-buying scheme. The family was also named in the junk army helicopter deal, which cost the State US$6.5m. Ends

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