President Yoweri Museveni has asked the Managing Director of Housing Finance Bank to give Ida Kwesiga an opportunity to sell her property which she values at $9m about shs 33 billion.
The bank however, had valued the property at $2.4m (shs 8.8 billion).
Background
The administrator of the estate of the late Samwiri Mishambi Kwesiga, represented by Ida May Kwesiga, protested sale of family property, the Mayflower Apartments, by the Housing Finance Bank at a paltry price, which she says was a fraction of the property’s value.
The bank reportedly sold the property at $2.4m (about sh8.8b) to a city businessman, yet the property was a couple of years ago valued much higher.
According to court documents, the family argues that the property is valued at $8m (about sh29.3b). A subsequent valuation put the value at over $9m (about sh33b).
The family accuses the bank of high-handedness and fraud in the transaction.
And therefore Mrs Kwesiga wanted court to issue a permanent injunction against the sale of the property in addition to costs and general damages of the suit.
In the court case, Kwesiga argues that on October 11, 2019, when the bank advertised the sale of the property, her family subsequently on November 8, 2019, applied to the court to have the transaction reviewed.
Mrs Kwesiga said her family secured the loan with intention of improving the apartments and condominium comprised in Freehold Register Volume 212, Folio 22, Plot 34 on Kyandondo Road in Nakasero, Kampala. The loan amount was $2.72m at the time.
The widow, despite the financial challenges posed by the COVID-19 pandemic, Housing Finance Bank went ahead to sell the property at the time when land transactions were halted by the lands ministry.
Museveni Intervenes
Mrs Kwesiga, last month asked the President to intervene and save her property.
She reasoned that she the bank denied her opportunity to sell her property and clear the loan.
In a letter dated September 9 in which the President directed to the bank, he ordered that Mrs Kwesiga be given opportunity to sell her property.
Full Letter
Mrs. Ida May Kwesiga has appealed for my intervention in the sale of her property mentioned above which she mortgaged with the bank. She is a widow of our comrade Late Eng. Samwiri Mishambi Kwesiga who offered us support during the liberation struggle.
Whereas, I am aware of the mandate of the bank when it comes to non-performing loans, Ida May Kwesiga should be given opportunity to sell the property herself and pay the bank within a period of two months.
