Katto Pleads To Be Declared Bankrupt

By Hillary Nsambu PATRICK Katto, the former managing director of International Credit Bank (ICB) now in liquidation, yesterday asked the High Court to declare him bankrupt.Katto told Justice Stella Arach Amoko in the Commercial Court that he was heavily indebted with over sh5b and was unable to pay his creditors.Through his lawyer S. Kasango, Katto said his total liabilities were sh5,747,316,162. He said he also owed US$216,000 and Deutsche Marks 12,000 to some creditors here and abroad.The court was amazed when his lawyer said Katto’s state of affairs showed that he only possessed matrimonial furniture, which he keeps in his wife’s house at Ntinda in the Kampala suburbs.But the receivers of ICB, through their lawyer Matthias Ssekatawa of Mugerwa and Masembe Advocates, asked court to reject Kato’s application to be declared bankrupt.They said there was no proof that Katto was bankrupt. But Kasango also told court that his client’s debts arose out of court cases and judgments against him. The judgment creditors include Nile Bank, his former bank, ICB, and many others. Katto also owes money to local and international business companies and institutions that include American Express Card, Kasango revealed.He said the only property he had was a land at Kakamba, which is estimated at about sh50m, but whose land title was being held by Engule Agencies Limited, which is one of the creditors.He said Katto was now a pauper who did not have any money or property, as his liabilities far outweighed his estate.Kasango asked court to issue receiving orders against his client and stay all court action pending the outcome of his petition for bankruptcy. The court will give its ruling on July 5.Ends