Court has withdrawn criminal summons against the Equity Bank Uganda Managing Director, Mr. Samuel Kirubi in which he was sued by Peter Kamya, the proprietor of Simbamanyo Estates for auctioning off his multi-billion city building.
Through his lawyers of Muwema & Co. Advocates and Solicitors, Kamya sued the Equity bank MD for breach of trust, unethical and illegal conduct. Kamya contends that his properties were sold off in the midst of a lawsuit.
“The purpose of this letter is to inform you that criminal summons which were issued in this matter on 13th September 2021 are consequently withdrawn,” reads part of the letter from Buganda Road Magistrate, Justice Tuhimbise Valerian.
According to Justice Tuhimbise, the DPP has pursuant to article 120 (3) (b) of the Constitution of the Republic of Uganda, taken over criminal proceedings in the matter where Peter Kamya is the complainant.
On August 20, 2012, Equity bank Uganda and Equity bank Kenya granted a loan facility of $6m to Simbamanyo to finance construction of a hotel on land comprised of Kyadondo Block 237 Plot 95 land at Luzira and also to take over Kamya’s prior loan from Shelter Afrique.
After failing to clear the loan, Equity put two properties up for sale to recover their money. The bank seized Simbamanyo House and Afrique Suits Hotel on Mutungo Hill in Kampala last year after the city tycoon Peter Kamya and his Simbamanyo Estates failed to pay outstanding loans to a tune of $10.8m (about Shs40 billion).
Sudhir Ruparelia acquired the Simbamanyo House building (now named; Gender and Labour House) in October 2020 after emerging as the highest bidders with $5 million about (Shs18.5 billion) through his company Meera Investment Limited.