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Uganda: How Lungujja School Became a Victim of Shs 2bn Loan Property Scandal Involving Bank of Africa

Uganda: How Lungujja School Became a Victim of Shs 2bn Loan Property Scandal Involving Bank of Africa

Rédaction Africa Links 24 with The Observer
Published on 2024-03-22 08:53:07

Lungujja Progressive School holds a revered status among residents of Rubaga division in Kampala, standing as one of their premier educational institutions. Founded by Sarah Nabuuma Nyanzi in 1995, the school started with just two pupils in a modest boys’ quarter of her Lungujja residence. With dedication and hard work, Nyanzi built the school from the ground up, and by the time the COVID-19 pandemic hit, the school had grown significantly, with over 500 students enrolled.

Situated on a spacious plot of land, the school boasted distinctive structures, dormitories, playgrounds, teacher accommodations, and a daycare facility. Eria Mutumba, Nabuuma’s son, recounted the heartbreaking turn of events that led to the demolition of a large part of the school. He described how his mother fell victim to a loan-property scandal while trying to expand the school and establish a new campus.

The heartbreaking chain of events began when a man referred to as Kizito Vincent approached Nabuuma with an offer of a property on Entebbe road in Zzana that could accommodate a school. He facilitated a loan of Shs 850 million from the Bank of Africa for the purchase of the property, under the condition that the ownership papers would be provided before the funds were disbursed. However, the bank disregarded this condition and released the funds to Kizito before the proper documentation was provided.

As the COVID-19 pandemic struck and schools were forced to close, the financial strain on the school increased. Nabuuma sought to sell the property in Zzana to access funds, but to her dismay, she found out that the bank did not possess the necessary title deed for the property. Despite her pleas, the bank continued to demand loan repayments, eventually leading to the sale of the school property in Lungujja and the demolition of several buildings by the bank.

Efforts to seek justice through legal channels were hindered by lack of cooperation from Bank of Africa officials. The police investigations were hampered, and despite evidence pointing to collusion between the bank and Kizito, the case was closed due to insufficient evidence. The family of Nabuuma, with the help of legal representation, continues to pursue justice in the matter.

In defense, Kizito claims that he provided Nabuuma with the necessary documents for the property transactions and that she failed to fulfill her payment agreements. The Bank of Africa maintains that Nabuuma was responsible for conducting due diligence and rectifying her loan defaults. The case remains unresolved, with both sides presenting conflicting accounts of the events that led to the loss of Lungujja Progressive School’s property.

Read Original article on The Observer

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