Former Bukoto South MP Muhammad Muyanja Mbabali has run to court seeking an injunction blocking DTB from the takeover his properties.
Last week, DTB put on notice for auction properties belonging to Mbabali over debt owed to DTB. DTB in an advert that appeared in today’s newspapers gave Mbabali only 30 days to pay the loans and save properties.
The properties include; Kyadondo block 244plot 7257, Kibuga block 29 plot 1573. LRV 3657 Folio 6, Block 253 Plot 34 at Nkozi trading centre in Mawokota, Mpigi district, Plot 39 Kampala Road in Masaka City, sitting on 0.093ha, which also houses a DTB branch, Plot 54 Block B located in Ntinda and registered in the name of MFK Corporation Limited, on 0.037ha and a three-storeyed apartment on Plot 7203 Kyadondo in Kampala.
“I was a customer for DTB and they are my clients at Masaka for the last 10 years. Once they came to me with a business deal that there was a hostel being sold at Shs 7 billion. My account had Shs 1.5 billion but they insisted on me buying, I insisted on not buying the idea but they suggested it was a good deal. Mind you, they overvalued the property. And that is the genesis of this entire crisis. After learning that the hostel was unproductive and no money was being generated, they resorted to attaching my property and the matter has been High Court since early this year” Mbabali said.
In 2019, MFK Corporation Ltd filled a suit against DTB bank accusing it of interalia, breach of fiduciary duty, predatory lending, breach of duty of care, fraud, causing loss, misrepresentation, general damages, interests and costs.
Before the hearing, the appellant filled an application, for account vide miscellaneous application. The application was on February 26, 2021 granted and the bank was ordered to furnish the applicant a full and true account of the dealing of the applicant from the date of opening to date including current overdraft within two weeks.
The bank was also ordered to furnish the applicant with a full account of the plaintiff’s properties and certificates of titles deposited or held by the bank detailing any encumbrances and their particulars within two weeks. The bank has since not availed anything as court ordered.
“The said DTB Ltd did not furnish such accounts in the manner and time ordered by court and is in breach of the said court order and in utter contempt of the authority of High Court of Uganda making illegal and contemptuous moves to sell off MFK Corporation Ltd’s properties despite pendency of court proceedings intended to determine the Bank high hand illegal dealings including the failure to render accounts of the appellant,” Mbabali’s Patrick Mugisha lawyer said.