Coop Bank defaulters warned of asset confiscation
Monday, 13th October, 2008

By Dismus Buregyeya in Masaka

OVER 600 former clients of the defunct Cooperative Bank branch in Masaka could lose their buildings and other assets which they presented as security for loans received between 1986 and 1999.

SIL Investments, acting on behalf of Bank of Uganda, sent warning letters to the defaulters in Masaka, Rakai and Ssembabule districts on October 8. SIL chief Evelyn Nanyange said Bank of Uganda would sell the assets within 14 days.

She said the assets had been advertised and ordered the defaulters to vacate so that buyers �take possession of the properties�.

Nanyange warned of force if the defaulters defied the order. Bank of Uganda has asked the Police to ensure order during the evictions. Masaka RDC Bamusedde Bwambale advised the defaulters to negotiate with Bank of Uganda for new payment terms.

However, the affected rejected the advice, saying they had not been warned about the sale. �This is strange. I know the loan but I have never got any communication on the sale of the properties. We shall seek a suspension of the exercise,� a former client said.

He said it was unfair to levy interest on the loans after the closure of the Cooperative Bank. But some defaulters said they had agreed with Bank Uganda to pay the loans in installments.

�We learnt about the warning to sell our properties and responded,� a client said.

Jean-Louis Kayitenkore
Procurement Consultant
Gsm:  +250-08470205
Home: +250-55104140
P.O. Box 3867
East Africa
Blog: http://www.cepgl.blogspot.com
Skype ID : Kayisa66

No comments:

Post a Comment