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    Multibillion Court Battle That May Cause DFCU Bank To Lose Over 53 Land Titles Because Of Defunct Crane Bank…



    Justice Stephen Mubiru, the head of the Commercial Division of the High Court halted DFCU bank application to withdraw a multibillion case against Baker Mugaino, the Acting Commissioner Land Registration and New Master Electronics and MP Electronics Limited.

    In their application, DFCU through their lawyers led by Ernest Sembatya confirmed to Court that they have entered into a consent judgment with the Registrar Land Registration who was a party in the lawsuit and agreed to withdraw the matter.

    However, the respondents’ lawyers lead by Fred Muwema and Robert Friday Kagolo protested the move claiming that it prejudiced their client and he was not consulted when it was signed.

    Muwema submitted that before the consent judgment was filed in court on 12th April, 2023, the respondent’s directors had already protested against it and their notice of disagreement was served to the bank and Registrar Land Registration.

    He further accuses the bank of being dishonest by misleading court to endorse a consent judgment with the aim of defeating a public hearing before Commissioner Land Registration.

    Sembatya on the other hand rubbished Muwema’s submissions and explained to the court that he has no right to stop the bank from withdrawing their own case.

    After carefully listening to both parties, Justice Mubiru declined to allow the withdrawal of the case and advised the respondent’s lawyers to amend their defence.

    The Commissioner Land Registration told the Court that he entered a consent judgment basing on a legal opinion over the matter given to him by Kiryowa Kiwanuka the Attorney General.

    The suit stemmed from loan facility agreements issued by Crane Bank dated 6th May, 2014 where MP Electronics Limited borrowed a sum of USD3m plus Shs3bn and secured the loans with mortgages over the suit properties registered in the names of the New Master Electronics Limited.

    The properties used as security are situated at LRV 4009 Folio 11 plot 88 South Street, LRV 330 Folio 11 Plot 56 Seventh Street, Industrial Area and LRV 301 Folio 21 plot 58 Seventh Street Industrial Area.

    The lawyers told Court that the borrower defaulted in servicing of the said loan facilities resulting in the issuance by Crane Bank of several default notices dating back to 5th June, 2015.

    They added that when Bank of Uganda in January 2017 sold and assigned DFCU bank to takeover Crane Bank’s loans portfolio, they took over the mortgages and other securities held in this respect including those of the defendants.

    In October 2016, Bank of Uganda took over the management of Crane Bank by reason of its insolvency and placed it under statutory management.

    Subsequently in January 2017, Bank of Uganda placed Crane Bank under Receivership.

    The lawyers explained that the defendants protested through filing legal suits against the plaintiff and Crane Bank contesting their indebtedness to Crane Bank, the validity and enforceability by the plaintiff (DFCU) of the mortgage securities over the said suit properties.

    The defendants further raised the question as to whether those mortgaged securities were validly and lawfully assigned by Bank of Uganda as a Receiver of Crane Bank to the plaintiff and whether the said assignment was completed in light of the mortgages claimed by the plaintiff.

    The lawyers added that the validity and enforceability of the mortgage securities by the plaintiff were upheld in all the various suits where it was resolved that the matter of validity and enforceability of the mortgage securities is accordingly Res Judicata.

    Based on the above argument, the lawyers protested the letter written by Baker Mugaino, the Ag Commissioner Land Registration subjecting them to a public hearing over the ownership of the mortgaged securities.

    In his letter, Mugaino revealed that Dr. Sam Mayanja, the State minister of Lands received a petition from the Directors of Master Electronics Limited as the registered proprietors of the contested properties.

    He stated that the petitioner’s properties were threatened by DFCU bank yet the mortgages are not registered in their name and requested that the said mortgages be removed as they are maintained illegally on the Land Register.

    “By a Memo dated 13th June, 2022, addressed to myself from the Minister of State (Lands), the Hon minister reiterated that Crane Bank was closed by Bank of Uganda in January 2017 and ceased to be a legal entity as a financial institution or bank. The above position was settled as a question of law and fact by the Supreme Court of Uganda in Misc Application No 39/2020 Sudhir Ruperalia Vs Crane Bank Uganda Limited (in receivership) and Bank of Uganda.”

    “That position is binding on all authorities and persons under Article 132(4) of the Constitution of Uganda and under Article 128(3), all organs and agencies of the State are obliged to accord to the Courts such assistances as may be required to ensure effectiveness of the Courts,” Mugaino’s letter reads in part.

    He added that the petitioners allege that despite the fact that mortgage deeds were drawn between them and Crane Bank, there were no funds actually credited on their bank accounts.

    He availed photocopies of their bank statements to that effect.

    He also added that they were not informed by the management of Crane Bank then that the bank was facing liquidity problems.

    DFCU declined to attend the public hearing at the office of the Commissioner Land Registration but their lawyers told court that the Commissioner’s Notice is unlawful and does not amount to summons for a hearing because the notice as framed has predetermined the question as to validity and enforceability of the mortgage charges over the suit properties.

    DFCU lawyers asked court to issue a permanent injunction that the Commissioner Land Registration in execution of his quasi-judicial functions under Section 91 of the Land Act is not subject to the direction and control of the Minister of State for Lands.

    They also want a court order that the Commissioner Land Registration removes the caveat lodged on the suit properties.

    However, the defendants through their lawyers of Muwema and Company Advocates filed an application for dismissal of the entire suit on grounds of lack of jurisdiction.

    In his affidavit in support of the application, Salim Pyarali Hirani, a director at the defendant’s companies insists that it is an abuse of court process for the plaintiff to challenge the powers of the Commissioner Land Registration to conduct a public hearing in respect of the defunct Crane Bank mortgage entries which appear on the land register.

    He added that the impugned Crane Bank mortgages currently appearing on the land register are false and an illegal entry which lapsed by operation of law upon the defunct Crane Bank ceasing to be a legal entity as a financial institution.

    He insisted that their mortgages were not part of the assets sold or purportedly assigned to DFCU under the PAAL agreement and deed of assignment respectively.

    He accused DFCU of being a forum shopping with the Bank of Uganda, Attorney General to cajole the Commissioner Land Registration to enforce a position that it is the owner or lawful assignee of the Crane Bank mortgages which is not right.

    In his opinion, the Attorney General Kiryowa Kiwanuka advised that the mortgages registered by Crane Bank and not sold, conveyed, assigned, transferred and delivered to DFCU, should not be cancelled as they are covered under section 16(1) of the Mortgage Act.

    If the applicant’s application is allowed, DFCU is likely to lose mortgages resulting from 53 securities.

    These include LRV 4410 Folio 13 plot 40 Lubas Road Jinja, LRV 4410 Folio 6 plot 55 Main Street Jinja, LRV 4412 Folio 10 plot 51 High Street, Mbarara, LRV HQT608 Folio 23 plot 4 Kennedy Square Soroti, LRV HQT608 Folio 22 plot 38 Soroti Block Gweri Road Soroti, LRV 4410 Folio 5 plot 80 and 82 Main Street Iganga, LVR HQT608 Folio 25 plot 143 Kabale, LRV HQT608 Folio 24 plot 145 Kabale, LRV 4410 Folio 8 plot 1 Adumi road Arua, LRV 4453 Folio 15 plot 11 Babiiha road Kabarole, LRV 4456 Folio 15 plot 4390 Block 208 Kyadondo Kawempe, LRV 4410 Folio 21 plot 20A Kyaggwe Mukono and LRV 4410 Folio 22 plot 18 Jinja road Mukono.

    Others include; LRV 4412 Folio 12 plot 22 Kampala Entebbe road, LRV 4412 Folio 14 plot 2 Tanga road Malaba, Tororo, LRV 4412 Folio 15 plot 4 Tanga road Malaba Tororo, LRV 4412 plot 2A Broadway road Masaka, LRV 4494  Folio 10 plot 387 Block 18 Mengo Nateete, LRV 4411 Folio 18 plot 388 Block 18 Mengo Nateete, LRV 4411 Folio 16 plot 40 Main street Hoima, LRV 4411 Folio 25 plot 1B Ntinda road Ntinda, LRV 4410 Folio 9 plot 53 Nyabushozi block 68 Rushere, LRV 4420 Folio 15 plot 5 Block 76 Kabula Masaka, LRV 4410 Folio 15 plot 93 Kibuga Block 7 Mengo, LRV 4411 Folio 18 plot 1419 Kibuga Block 5 Mulago, LRV 4411 Folio 17 plot 1463 Kibuga Block 5 Mulago, LRV 4421 Folio 3 plot 44 and 46 Kamwengye road Ibanda, LRV 4410  Folio 19 plot 60 Block 333 Nabingo, LRV 4410 Folio 17 plot 817 Kibuga Block 10 Nakulabye, LRV 4410 Folio 11 plot 1 Fort portal road Bushenyi, LRV 4410 Folio 12 plot 52 Masindi, LRV 4567 Folio plot 54 Masindi Port road Masindi, LRV 4410 Folio 7 plot 103 Customs road Samia Bugwe Busia, LRV 4453 Folio 19 plot 101 Customs road Busia, LRV 4453 Folio 14 plot 18 Old Kabale road Ntungamo, LRV HQT688 Folio 1 plot 846 Block 652 Bulemezi, LRV 4410 Folio 16 plot 688 Busiro Block 438 Nkumba, LRV 4412 Folio 14 plot 893 Busiro Block 438 Nkumba, LRV 4412 Folio 11 plot 7 Luthuli Lane Bugolobi, Plot 106 Block 232 Kireka, LRV 2756 Folio 12 plot48 Lira Avenue Lira.


    By Sengooba Alirabaki


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    Troubled Businessman Ham Kiggundu Supporters Beg M7 Save His Empire; Spill Secret Plans To Auction His Properties…



    Businessman Ham Kiggundu

    Supporters and sympathies of troubled businessman Hamis Kiggundu the proprietor of Ham Enterprises Uganda Limited and Kiggs International Uganda Limited want President Yoweri Kaguta Museveni to save their man’s empire which is under threat after the Supreme Court judgment.

    Last week, Supreme Court justices; Owiny Dollo (Chief Justice), Justice Faith Mwondha, Justice John Mike Chibita, Justice Percy Night Tuhaise and Justice Steven Musota unanimously dismissed Kiggundu’s appeal against Diamond Trust Bank (DTB) in the Shs120bn case.

    The Justices declared that the Shs41bn loan which Kiggundu secured from DTB Kenya was legally issued.

    They directed the Commercial Division of the High Court judge who is going to try the matter again to only concentrate on facts not legality.

    However, sources close to Kiggundu’s lawyers claim that the controversial businessman has instructed their lawyers to file a constitutional petition in the constitutional court challenging the Supreme Court decision insisting that it contradicts with the national constitution especially on grounds of fair hearing.

    Even though Kiggundu is still very determine that he is going to save his multibillion empire through courts of law, his supporters led by senior presidential advisor on media Joseph Tamale Mirundi, who also claims to be a relative to Kiggundu, have pleaded with president Museveni to save the youthful businessman’s empire.

    “I pray that President Museveni’s attention will be drawn to this young man’s troubles. He has to save him like he has been saving other people even those in the opposition like late John Ssebaana Kizito, businessman Mukwano and James Mulwana when their empires were threatened by mafias,” Mirundi said.

    He added that he has recorded audio evidence when mafias in business and legal circles from Uganda and Kenya are strategising on how to finish Kiggundu and his properties once they are put up for sale.

    Mirundi claims that the people he branded as mafias are targeting Kiggundu’s properties, especially the newly completed Nakivubo stadium.

    Highly placed insiders at K&K Advocate who represented DTB Bank revealed that they are done with summation of the court costs that the Supreme Court awarded them which are in billions of shillings.

    The justices of the Supreme Court awarded DTB bank with 50% of the total costs at the court of appeal and at the Supreme Court.

    K&K Advocates whose founding partners are Kiryowa Kiwanuka, the country’s Attorney General and Edwin Karugire, a commercial law giant and also son-in- law to President Museveni, is currently one of the expensive law firms in the city and their instruction fee are high and most of the times they charge in dollars.

    Kiggundu’s lawyers led by Fred Muwema, who is currently out of the country on special legal duties and Robert Friday Kagoro are also strategising on how to finish DTB Bank even though they suffered a setback at the Supreme Court.


    By Sengooba Alirabaki


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    Bad Black Finds Her Match In Acram And Kulthum Battle, Forced To Go On Vacation…



    Bad Black with lover Usher (L) and Kulthum with husband Acram (R)

    Socialite Sharitah Namuyimbwa alias Bad Black became popular for the wrong reasons and has tried staying in the lime light through giving uncalled for opinions, insulting others and spilling her own secrets.

    Black has successfully been at it until she poked her nose into Acram Gumisiriza and Kulthum Nabunya’s marriage.

    After Acram appeared in a TikTok video crying and asking for forgiveness. Bad Black shared on her social media words of advice asking him to remove his relationship from the media.

    “My opinion is that small misunderstandings doesn’t make you appear in all TV interviews unless you’re dense… You can solve the matter out of cameras, not everything should be known by the public. Acram’s reasoning capacity is for a P7 drop out. Relationship is not a public toilet you are adults,” Black posted

    Unlike other people who have kept quiet after her attacks, Acram responded to Black’s post and in the process, attacked Bad black’s lover boy Usher alias Slim daddy by calling him a doll made from Banana fibers.

    Black responded with a Facebook live filled with vulgar insults towards Acram and Kulthum. To calm the situation, Kulthum warned Black off her marriage and threatened to take her to courts of law if she throws her vulgarities at them again.

    The couple on Saturday followed the words with action when they reported Bad Black to Central Police Station (CPS). The case files read Cyber harassment, false allegations towards their family and insulting the modesty of a woman under file number 1303/06/2023.

    Unfazed with their move, Black said that the cases filed against her are bailable and she has a good team of lawyers who will help her overcome them.

    Black also did the same, she filed a case against Acram at Kira Police Station under file number 44/03/06123. She is accusing Acram of IT violence.

    Scared for her freedom and money, Bad Black fled out of the country with her boyfriend on Sunday for a vacation. She claims that she doesn’t have time to spend on crimes that have no money involved.


    By Rahma Zawedde


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    MP Luttamaguzi In Trouble, Buganda Clan Heads Threaten To Finish Him Politically Over Secret Dealings With M7…



    Some of the Buganda clan heads who met President Museveni. On the right is MP Luttamaguzi

    Nakaseke South Member of Parliament (MP) Paulson Ssemakula Luttamaguzi is in trouble after a section of Buganda Kingdom clan heads threatened to finished him politically over his dealings with President Yoweri Kaguta Museveni.

    theGrapevine has exclusively established that the clan heads led by Yusuf Mbirozankya, of Ffumbe clan, are very furious with the legislator and are accusing him of moving around social media insulting them before their grandchildren that they are using Buganda to get favours from President Museveni.

    “We shall also expose him, we know all his dealing with Gen. Salim Saleh and if continues being used to fight wars against us, we will also fight back,” one of the clan heads who met president Museveni last month said.

    He adds that Luttamaguzi is one of the Buganda legislators who have been using Buganda demands like a federal system of governance from the central government to win elections and are in fear that the clan heads can open their grandchildren’s eyes.

    He wonders why Luttamaguzi attacked them for meeting Museveni yet they have severally also met National Unity Platform (NUP) principal Robert Kyagulanyi Ssentamu (Bobi Wine) especially during the 2021 presidential campaigns which resulted into Mengo’s misunderstanding with president Museveni and his NRM party.

    Mbirozankya adds that they will support any candidate that will face Luttamaguzi if he does not apologise to them.

    Kampala affairs junior minister Joseph Kabuye Kyofatogabye is set to contest against Luttamaguzi.

    The head of Buganda heads of clans’ council Augustine Kizito Mutumba told theGrapevine that the clan heads who met Museveni with junior information and national guidance minister Joyce Nabbosa Ssebugwawo did it on their own and didn’t inform Mengo administration.

    Luttamaguzi claims that it was wrong for clan heads to meet Museveni when people of Buganda, especially youths are rotting in prison because of supporting Bobi Wine.

    He adds that instead of going to meet Museveni, clan heads would have joined the struggle to fight Museveni government.

    Luttamaguzi’s war with Buganda clan heads comes days after president Museveni directed Prime Minister Robinah Nabbanja to take action against him and Butambala county legislator Muhammad Muwanga Kivumbi for sabotaging government’s Parish Development Modal.

    The legislators responded back and challenged him to table evidence that shows that they are sabotaging government projects.


    By Sengooba Alirabaki


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