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Court orders Absa bank to pay Shs5.2b for illegal sell of Progressive Group of schools ldt properties 

By Simon Peter Atwiine
Absa Bank Uganda MD

Must read

Simon Peter Atwiine
Simon Peter Atwiinehttps://eagle.co.ug

Court has ordered Absa Bank formerly Barclays to pay Shs5.2Billion for selling off Progressive Group of Schools. The group sought for a Shs1.3 billion loan however only Shs400 million was given to them.  

The bank pretended that their client failed to service the loan and sold the group properties to Luyanzi Academic Foundation.

In 2009, the group through their lawyers, the group, Ab’mooti Investments Ltd and Kaahwa Erisa Amooti dragged the bank and Luyanzi Academic Foundation for fraudulently taking over School properties. In 2019 High Court Judge Wangutusi ruled in favor of the respondents. The applicants however appealed against the court ruling.

Appearing before court, a panel of judges led by Justice Richard Buteera, Catherine Bamugemereire and Stephen Musota set aside the high court ruling and ordered the respondents to pay Shs400 million for the 13 years.

“The sale, transfer of the applicant’s suit properties by the bank and Progressive Group of Schools is set aside and the registrar of titles is hereby ordered to cancel the transfer and registration of Luyanzi Academic Foundation and reinstate the appellants as the registered proprietors of the suit properties who shall be entitled to vacate possession thereof,” Court ruled.

The story will be updated.

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