Standard Chartered Bank finally lifts KenGroup receivership
May 25, 2008
STANDARD Chartered Bank has finally lifted the Ken Group of Companies receivership, ending over a year’s feud.<br>Ken Group is the local manufacturer of scholastic and stationary materials.
By Charles Bwogi
STANDARD Chartered Bank has finally lifted the Ken Group of Companies receivership, ending over a year’s feud.
Ken Group is the local manufacturer of scholastic and stationary materials.
The receivership arose from a loan impasse that saw the two parties fight running battles in courts of law. This was after complaints by Edward Kigongo, the proprietor of Ken Group, that Standard Chartered Bank wrongfully put his company under receivership.
He also accused the bank of illegally holding onto its two land titles worth over sh2b over a loan he claimed he never utilised.
The disagreement stemmed from the two loans of $370,000 and $530,000 the bank claimed it extended to Ken Group of Companies.
However, Kigongo, who disclosed that he has worked with the bank since 2002, said he used the first facility but rejected the second one because the bank did not release the money in time.
“I rejected it because by the time it came the season which normally runs from October to January was off,†he said, adding that the bank insisted that he takes the second facility.
“We have been instructed by Standard Chartered Bank Uganda Limited to lift the receivership over Ken Group of Companies Limited,†the bank’s lawyers, Sebalu and Lule Advocates, wrote to Kigongo on May 21.
The letter was copied to High Court’s Commercial Division Registrar.
The letter added that Deloitte and Touché, an audit firm, had been instructed to start an audit and reconciliation process to establish the indebtedness of Ken Group to the bank (if any).
STANDARD Chartered Bank has finally lifted the Ken Group of Companies receivership, ending over a year’s feud.
Ken Group is the local manufacturer of scholastic and stationary materials.
The receivership arose from a loan impasse that saw the two parties fight running battles in courts of law. This was after complaints by Edward Kigongo, the proprietor of Ken Group, that Standard Chartered Bank wrongfully put his company under receivership.
He also accused the bank of illegally holding onto its two land titles worth over sh2b over a loan he claimed he never utilised.
The disagreement stemmed from the two loans of $370,000 and $530,000 the bank claimed it extended to Ken Group of Companies.
However, Kigongo, who disclosed that he has worked with the bank since 2002, said he used the first facility but rejected the second one because the bank did not release the money in time.
“I rejected it because by the time it came the season which normally runs from October to January was off,†he said, adding that the bank insisted that he takes the second facility.
“We have been instructed by Standard Chartered Bank Uganda Limited to lift the receivership over Ken Group of Companies Limited,†the bank’s lawyers, Sebalu and Lule Advocates, wrote to Kigongo on May 21.
The letter was copied to High Court’s Commercial Division Registrar.
The letter added that Deloitte and Touché, an audit firm, had been instructed to start an audit and reconciliation process to establish the indebtedness of Ken Group to the bank (if any).