All is not well with Tycoon Tom Mugenga as the Commercial Court has ordered that he clears within the shortest time possible 30 percent of the Shs3 billion he owes a local bank or else he loses a mansion.
Failure to clear part of the debt by December 23 deadline will force the court to allow for the eviction of the tycoon’s family from his mansion located in Kisugu, Makindye Division.
Mugenga is said have obtained the loan from Bank of Africa some time back, presenting the family home in Kisugu as collateral to finance his transport business under the company name Mugenga Holding Limited.
But the family says Mugenga did not inform them he had presented the family house as security for the loan. His wife, Sarah Mugenga says she only learned of the loan when the bank’s lawyers, Ligomarc and Company Advocates, wrote in March this year, threatening to auction the house.
Mrs Mugenga now wants Justice Jane Alividiza, who heard the case, to halt the eviction order but the judge says she can only do that if the family pays 30 per cent of the loan by the deadline.
Mrs Mugenga filed her application for review of the order through Bwango, Araali and Company Advocates. She intends to run to the Court of Appeal as well. Money lenders also took away his black Land Cruiser for not paying debts.