Stanbic returns illegally mortgaged property

Stanbic Bank has agreed to return land titles of the illegally sold properties in Luzira.

In 2017, MacDowell limited mortgaged its properties on plot 1, 3, 4, 5 and 6 closes, Luzira to Stanbic Bank Limited as security for a loan. The company at times failed to pay loan installments on time and decided to go for Consent judgment to clear the loan by 30th June 2020. The company claimed that they paid off the loan but the bank has declined to release its titles.

Initially according to McDowell, the bank’s lawyer identified as Andrew Munanura claimed that it had sold the property by public auction after the bank advertised in the monitor and auction took place on December 6, 2019 yet there was no auction.

Upon that the company ran to the High Court challenging the matter in which its properties were grabbed by Bank employees and sold amongst selves.

The company claims that its properties were undervalued in that, they were sold at Ugx 1 billion yet the actual value of the property is Ugx 4 billion.

Also, the claims are that the property was grabbed through an insider, dealing scheme between the bank and its employees using a front called Myriad Investment Club limited. The shareholders of Myriad Investment Club limited include; Kenneth Kitungulu (Executive and head Global markets Stanbic Bank), Lawrence Kaweesa (Global Business Manager Stanbic Bank), Allan Muhinda (interests dealer Stanbic Bank), Daisy Nitwe (Treasury sales dealer Stanbic Bank).

The others are Emmanuel Rukeeba (head analytics and products Stanbic Bank), Maureen Kembabzi Katwebaze (works with Stanbic IBTC Bank Nigeria) and Thaib Lubega (Formerly Treasury Manager Stanbic Bank).

It was revealed that Kenneth Kitungulu and Daisy Nitwe signed the sale agreement as the buyer’s directors. The sale agreement was drawn by the bank’s legal department, colleagues of the buyers/ directors/ shareholders.

According to section 39(2) AND (3) of the mortgage Act, sale of mortgage property by a bank to its employees is a crime punishable for not less than 24 months in prison.

Police Criminal Investigations Department has summoned Mr Kenneth Kitungulu among other bank employees to aid investigations

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