Connect with us



By Mulengera Reporters

The proprietor of Jomayi Property Consultants Joseph Yiga Magandazi, whose indebtedness we wrote about over the weekend, has telephoned us clarifying that the extent of his debt has been exaggerated and misrepresented largely because of disagreements between Uganda Development Bank (UDB) and their lawyer (Nangwala, Rezida & Co Advocates). Jomayi says “It’s true I had [in 2016] contracted a Shs3.5bn debt with Uganda Development Bank which I have been servicing very well. I have performed so well as a borrower, servicing my debt obligations to the bank, to the extent that as of now the balance isn’t even Shs30m. It’s very little I think not more than Shs22m. I need to check that up.” He added; “I rang them on seeing that claim being published in the media and the bank management too was shocked. They apologized to me and said these were the actions of their lawyer and not them.”     

In the same call, Mzee Jomayi (six of his prime and vast properties were recently advertised by Byomu Associates Ltd acting on behalf of the bank) explained that there was nothing to be alarmed about because he has actively been servicing the loan and he is more than certain the remaining mere Shs22m will be paid in the coming few days. He furnished us with receipts showing he has regularly been depositing money for UDB towards decimation of the loan. “But in September last year [2019] we notified them about the Shs200m payment that was about to be made. Prior to making that deposit the bank wrote to me a letter strictly directing that I deal with them directly. That is how the lawyer was sidelined for reasons I don’t know about because I’m not privy to the details of their relationship but I think its on that Shs200m payment that the lawyer expected to get his commission or something like that. I think since that time the relationship became strained and the lawyer, already privy to my loan relationship with the bank, decides to put out that newspaper announcement just to show the bank that by the way I can cause trouble between you and your borrower [Jomayi], otherwise my hands are clean in as far as that Shs3.5bn loan facility is concerned,” Jomayi explained. Indeed, as if to corroborate what the businessman is saying, on Tuesday 24th September 2019, UDB wrote to Jomayi acknowledging the loan (initially Shs3.5bn) had been decimated to mere Shs368m. In the same letter, the bank informs Jomayi from their records Shs368m is what is remaining to annihilate the loan to zero balance. They ask him to verify with his accounts persons and write back what according to his internal reconciliation is remaining. The tone of the letter doesn’t show a creditor that is becoming uneasy with his borrower. The language therein is cordial implying all was going on well.

Jomayi also shared with us the 22nd November 2019 letter UDB Senior Manager Credit Risk Dennis Kiiza authored acknowledging receipt of the Shs200m on which the bank based to release Jomayi’s title for Block 112 Kyaddondo Plots 133 and 146 that had previously been held up as part of the security for the larger loan sum. Jomayi argues the fact that the bank continued writing to him cordially as recent as last November is proof, he has effectively bee executing his loan obligations.

Related documentation shows that on 2nd December 2019, Shankxz Lee Brooklyn (a Ugandan based in UK from whom Jomayi obtained the Shs200m) concluded his land purchase from one of the Jomayi estates. For the two plots, Lee paid 42,607 Pounds (which comes to Shs200m). Jomayi instructed him to directly transfer that money to UDB’s account number 01013500015673 in DFCU bank. The transfer came through Barclays Bank and UDB subsequently wrote to Jomayi acknowledging receipt of the money. The cash hit UDB account on Wednesday 4th December 2019.

On Lee’s behalf, the transaction was handled and concluded by Francis Harimwomugasho, a lawyer working with Industrial Area-based Newmark Advocates officed at City Star Building. Mulengera News understands that the involvement of this Newmark law firm (some of whose stakeholders have influence in the UDB Governing Board) is what discomforted the Nangwala law firm to the extent of going gloves off to the detriment of Jomayi Property Consultants.

There are numerous other receipts showing that the Jomayi tycoon has been making regular payments towards clearing his loan obligations with UDB. On 11th October 2019, he personally deposited Shs20m in favor of UDB and Shs5m on 3rd October. Then this very year, on Wednesday 8th January 2020 (which is last week), he paid Shs20m towards clearing the same loan. Sources have revealed that besides being remorseful and offering their apology to Jomayi (over the unauthorized publication by the bailiffs and lawyers), the management of UDB (whose MD Patricia Ojangole couldn’t be gotten hold of by the time we published this story) has also been trying to distance themselves from what was published in the newspapers regarding Jomayi’s debt.

In fact, some of the UDB bank officials, speaking anonymously, have told Mulengera News they want to establish who exactly instructed the bailiffs and the lawyers to run that notice in the newspapers because as far as they are concerned, the man has been meeting his loan obligations. “In fact, as we wait for the remaining Shs22m balance, we are getting prepared to entertain fresh loan application should Jomayi request for it because he has been a good borrower who has demonstrated capacity to pay back exceeding our expectations,” said a UDB bank official who was uncomfortable being quoted. “Notwithstanding the agony our differences with our attorneys have caused complicating this relationship, Jomayi has been a good borrower because in Uganda’s economy today we don’t have many local business entities that can borrow Shs3.5bn in 2016 and clear everything by the end of 2019. He has actually cleared within 3 years which is commendable. We need more such borrowers from the local businesses. They deserve commendation and encouragement rather than condemnation. That is why we feel sorry that man [Jomayi] has had to go through so much torment simply because of minor differences between us and our attorneys.”

The same UDB bank official said officials from the Nangwala law firm have lately not easily been available for interaction regarding the Jomayi saga. Jomayi lawyers too said they have been trying to have some interface with the said lawyers in vain. (For comments on this story, call, text or whatsapp us on 0705579994 or email us at 

Some of the relevant documents and receipts showing how Jomayi has been executing his loan obligations towards UDB 

Evidence for the Shs200m Jomayi recently paid to UDB through Mr. Lee, a UK-based Ugandan who purchased land from the company and was directed to remit the money directly to UDB. 




Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

More in NEWS