HE SURVIVED MANY OTHERS B4 BUT GOV’T BANK (UDB) FINALLY BLOWS UP JOMAYI
By Mulengera Reporters
Mzee Joseph Yiga Magandazi (aka Jomayi) has previously survived banks (for instance Centenary) auctioning his property as a response to failure to service his debts but this time round he might not be as lucky. Through Byomu Associates Ltd, a bailiff’s firm based on Gadafy Road near LDC in Makerere, the Patricia Ojangole-led Uganda Development Bank (UDB) is out to take over several of his properties to recover the billions he owes the government bank. A public notice published in the Daily Monitor newspaper shows that Jomayi is living on borrowed time as at least 6 of his prime properties are to be auctioned if he doesn’t pay up promptly and he has up to end of this very month of January 2020.
NOT FIRST TIME
In the past (barely 3 years ago), the storm Jomayi managed to overcome involved Catholic Church-owned Centenary Bank contracting KAA lawyers to spearhead recovery of more than Shs1.5bn the real estate developer had reneged on paying prompting his risk manager Fredrick David Egesa to famously accuse the bank of not acting in good faith. Back then, Egesa (who we aren’t sure still works with Jomayi) admitted they had cash flow problems implying, as their long-time banker, Centenary should have been more understanding and patient as they looked for money. Back then Part Property & Assets Recovery Trust, hired by KAA, was auctioning Jomayi’s stone quarry in Mukono and his headquarters Yiga Chambers in Old Kampala to recover the bank’s money.
Yet that wasn’t all. The bank also lined up Busiro Block 349 comprising of plots 519 in Nalumunye Wakiso district for auctioning. Small plot owners were given 14 days to vacate or risk the wrath of the bailiffs that are famous for ruthlessness and humiliating whoever stands in their way. Mzee Jomayi Magandazi, to whose rescue more flexible and longer-term lending UDB came back then in April 2017, also risked losing Kyaggwe Block 184 comprising of plots 1600, 1802, 1637, 1637 and 1599 all in Buligombe Mukono district. Whereas the Centenary bank’s initial principal sum was just Shs2.4bn, UDB’s is way much more and all this only makes it more complicated for Jomayi to circumvent his current predicament.
Worst of all, such moves by financial institutions always frighten and scare off would-be buyers which is the very last thing a developer like Jomayi would face in contemporary Uganda’s ever shrinking real estate market. All well-intentioned Ugandans should pray that the native entrepreneur’s efforts to quickly raise UDB’s money in the few remaining days succeed and his empire is saved otherwise successfully taking over and auctioning the 6 properties being targeted will hurt not only Mzee Jomayi but even some of the low income-earning Kampalans that depend on his low-cost estates to gradually become first time home owners. (For comments, call, text or whatsapp us on 0705579994 or email us at email@example.com).