As the bad economy continues to affect most Ugandan firms, The Pepper Publications is among those companies whose future is at stake.
Last week, the Namanve based printing firm closed one of its subsidiary tabloid Hello having been hit by financial woes.
The defunct tabloid had failed to pay salary for its employees and more so failed to sustain costs of production.
New information reveals that the Pepper Publications sold its Shs 5bn Crane Bank loan to Stanbic before directors picking an extra Shs 2.5bn for personal use
“Unfortunately, the tabloid has fallen short of honouring its financial obligations, compelling the bank to take drastic measures,” a staff at Namanve said.
Recalling a loan means that the bank wants their money immediately.
“This usually happens when the contract has been breached in some way by the borrower.
This situation means that the entire loan balance becomes due and payable right away.”
Failure to pay means The Pepper Publications will have to get another bank to make over the loan.
