Two prime properties belonging to city architect Peter Kamya, the developer of Simbamanyo Estate, were auctioned in accordance with provisions of the Mortgage Act and the Mortgage Regulations to the highest bidders.
In a detailed report containing fresh evidence of how the beleaguered businessman obtained the credit facility Equity Uganda & Equity Bank Kenya Limited indicates that between 2012-2014, the estate took a loan in excess of $7.1 million before interest and secured the said facilities by mortgaging LRV 2220 Plot 2 folio Lumumba Avenue (Simbamanyo House) and properties comprised in Kyadondo block 243 Plots 95, 958,2794,17800 and block 237 Plot 95 land at Mutungo (Afrique Suites).
The new evidence spanning 9 years details Kamya’s ‘crinkum-crankum’ as he planned with his lawyers to arm-twist the bank after failing to service the loan which accumulated to a tune of $10,000,000.
The evidence, indicates that Mr Kamya further approached Bank One of Mauritius for a loan request of $10,000,000 which was obliged.
“We wish to advise that your request for banking facility has been approved by Bank One Limited. Bridge Loan: USD 10 million,” a letter from the officials of the bank to Mr Kamya dated November 16, 2017 reads.
The purpose of the USD 10m loan, Bank One expressly indicated was; “for refinancing of the existing loan with Equity Bank Uganda Limited (USD 7,900,000) and to complete remaining works on Afrique Suite Hotel.”
The Bank added; “the facility has to be used for the purpose for which they have been sanctioned. Any deviation without Bank’s approval would entail cancellation of the facility.”
Shockingly, Kamya through his Simbamanyo Estate never paid Equity bank any single coin.
Against that backdrop, the properties were lawfully sold in October 2020 after 8 years of defaulting and numerous Court cases of which majority suits Kamya lost.
“From 2016 to September 2020, Kamya continued to receive from the mortgaged properties without considering paying back the loan but instead chose to ignore the agreement as he opted for legal means even with reminders no payment came through,” report suggests.
Simbamanyo House was bought my Meera Investments in October last year at USD 5 million while Afrique Suites was purchased by Luwaluwa at USD 4,350,000.
Ever since the properties were auctioned and later purchased in accordance with provisions of the Mortgage Act and the Mortgage Regulations to the highest bidders, Mr Kamya has since contested the process through Court and is yet to succeed.
He has also sought the intervention of President Yoweri Museveni.
And last week a letter from Museveni directing the Bank of Uganda Governor, Prof. Emmanuel Tumusiime Mutebile, to investigate the foreclosing of properties, belonging to Architect Peter Kamya of Simbamanyo Estates Ltd made rounds on internet.
In the 3rd September 2021 letter (Reference No. PO/19), titled “Claims Of Illegal Sale Of Simbamanyo House And Afrique Suites”, the President informs the Governor that Mr. Peter Kamya and Dr. Margaret Muganwa, his wife, had appealed to him to intervene in the matters regarding the sale of his Sibamanyo House and Afrique Suites by Equity Bank.
“They (Mr & Mrs Kamya) state that, whereas Bank of Uganda directed that there should be no foreclosure of mortgaged properties by Banks during the COVID-19 pandemic, Equity Bank went ahead and sold their properties at very low prices. That they had even offered to get their own buyers but all their attempts were frustrated. This is, therefore, to direct that you expeditiously investigate the matter and report back within one week,” President Museveni wrote to the Central Bank Governor.
The letter was copied to Mr. Peter Kamya and Dr. Margaret Muganwa.
But this website has learnt that Museveni received a comprehensive report from Bank of Uganda detailing the events that happened after Kamya acquired the loan and before his buildings were lawfully sold.
The events shrouding the purchase show the processes were legal and that Mr Kamya deliberately refused to honour his obligation of servicing the bank facility.
Our investigation reveals that therefore, he could have sought it wise under the guidance of his ‘clever’ legal officers to involve in the President as an orchestrated of influence peddling against Equity Bank by deliberately misrepresenting the facts.