The NRM chaiman for Bulambuli house to be auctioned by the Bank after he failed to pay a loan of Shs 92M (PHOTO/Courtesy)
The District National Resistance Chairperson for Bulambuli district could lose his only prime property located at Bwikonge, Sipi town board in Bulambuli district.
Mr Paul Kimamati, an ardent supporter of NRM borrowed Shs 50 million from Finance Trust Bank in 2019 hoping he would pay it back in time but when Covid-19 struck in 2020/2021, all his businesses closed and he was unable to pay the loan.
A report by the Economic Policy Research Centre [EPRC ] dated 26 November 2022 says COVID-19 made some business enterprises to permanently close due to restrictions of movement and the direct and indirect COVID-19-related factors accounted for over 60% of the permanent business closures.
And the COVID-19 episodes are also characterized by intermittent business closures of complete and partial nature across the country where Mr Kimamati’s business also suffered.
The EPRC report adds that the intermittent business closure rate in the first COVID-19 lockdown period was 78%, majorly driven by complete business closure (rate of 67%) – partial business closure rate was 11%.
Information privy to the Bank indicates that in 2020, 2021, and 2022 Mr Kimamati requested the Bank to extend the loan payment which they did but up to now, he has failed to pay the bank and the amount has increased to Shs 92, 073, 391 million that includes the principal, interest, and penalties for late payment.
A letter seen by UG Standard signed by Finance Trust Bank Branch Manager for Mbale dated 23 July 2023 says the bank will proceed to sell the mortgaged property if he does not pay the Shs 92. 073, 391m by public auction or private treaty.
“Notice is hereby given that unless the said past due amount is paid including the principal, interest, and penalties for late payment is paid within forty-five [45] working days from the date of this Notice, otherwise the mortgagee shall recall the entire loan currently standing at Shs 92, 073, 391. The bank will proceed to sell the mortgaged property by public auction or private treaty under powers conferred upon the said mortgagee by the mortgage and under section 20 of the Mortgage Act 2009,” reads the letter signed by the Branch Manager Finance Trust Bank, Mbale.
The letter adds that “Please note that the loan will continue to accrue interest on a daily basis until the past due obligation is settled,”
In another letter written to Mr Kimamati on 20 June 2023, the Bank threatens to take legal action against him, attach his only property, the house, and levy all recovery costs in the case on him.
When reached for a comment, Mr. Kimamati who has fled his home and the entire family consented he got a loan and has failed to pay for it but hopes the NRM chairman and president of Uganda will help settle this
“I have been an ardent supporter of NRM, my district usually performs well during elections including the 2021 election and I know the president has a good heart for his people, he will rescue me, I am sure but the Bank is moving very fast,” said Mr Kimamati who doubles as the dean of NRM chairpersons in Elgon zone and the national publicity secretary for NRM chairpersons before switching off his phone.
And correspondences seen by this website indicate that Mr. Kimamati has communicated [in a letter dated 21 June, 2023] to the NRM secretariat and the NRM chairman and president Mr Yoweri Kaguta Museveni although there has been no response at all.
“The purpose of this communication, therefore, is to seek your parental intervention to help me clear the loan and save my home from being sold. Sale of my home will cause embarrassment to me as a person, to the NRM party as an organization I have served ardently, and to my family,” reads one of the letters written to the president and chairman of the NRM party.
The Secretary-General NRM secretariat Mr Richard Todwong June 30 wrote to the Bank requesting them to halt the execution and legal proceedings against Mr Kimamati for a month urging that in a month’s time, they will have successfully pursued the matter.
“I have already written to his Excellency the president and I am confident that within a month, we shall have successfully pursued Mr Kimamati’s matter with His Excellency the president and chairperson of the NRM party,” reads a letter to Finance Trust Bank signed by Mr Todwong SG NRM.
And although 30 days elapsed in July, His Excellency the President is yet to say anything on the issues concerning Mr Kimamati and his Finance Trust Bank Loan.
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