Govt will not pay Basajjabalaba’s debt

Feb 16, 2008

THE Attorney General (AG) has denied that the Government agreed to rescue Basajjabalaba out of his sh6b debt with the Uganda Development Bank (UDB).

By Hillary Nsambu

THE Attorney General (AG) has denied that the Government agreed to rescue Basajjabalaba out of his sh6b debt with the Uganda Development Bank (UDB).

“The Government was not and is not a party to the agreement that was made between basajjabalaba Hides and Skins (U) Limited and UDB,” the AG states in a defence against a claim by the bank that the government is liable to pay the debt.

UDB alleged in its plaint that when it requested court to put Basajjabalaba Hides and Skins under receivership in 2004, the finance state minister halted the move on the grounds that the Bank of Uganda was working out a “rescue package” for it, for the benefit of all parties.

When the case had come up for hearing on February 7, 2008, Justice Geoffrey Kiryabwire of the commercial Court adjourned it to February 20 when the application will be heard.

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