Business

Stanbic Bank takes control of top petrol firm for defaulting on huge loan

Mogas group in trouble for defaulting on Stanbic Bank loan (PHOTO /Courtesy).

KAMPALA — Stanbic Bank Uganda has taken control of petroleum products distributor MOGAS, after the latter reportedly failed to pay back a three-year loan.

The bank immediately put the company, whose full name is: Maestrol Oil and Gas Solutions under receivership to recover it’s money.

Non of the two accepted to disclose how much money is involved.

In the notice of intention to take over the fuel company, the lawyers, Ligomarc Advocates, said they had appointed Kabiito Karamagi as receiver of Maestrol Oil and Gas Solutions, until the bank recovers its money.

Apart from Uganda, other MOGAS assets affected by Stanbic’s decision are in other East African Community countries.

Ligomarc’s letter confirming the decision to recover Stanbic’s money, also says the recovery efforts will be concluded simultaneously in Uganda, Kenya and Tanzania.

The lawyers say the entities associated to MOGAS (in receivership) in those countries are also indebted to the bank.

Kabiito’s duty is to ensure smooth running of the company as he collects the money from the operations and hands it over to Stanbic Bank to clear the debt.

The bank says it has tried all peaceful and mutually acceptable solutions to both parties, but recovery of the money had failed.

MOGAS distributes various petroleum products across East Africa and the Democratic Republic of Congo.

In and around Kampala, it has at least 12 fuel stations, with more in Jinja and Entebbe, according to the letter to the police.

Other assets include modern oil terminals at Dar es Salaam and Tanga in Tanzania.

Maestro Oil & Gas Solutions (MOGAS) was founded in 1987 to deal in the distribution of finished petroleum products in the region and is also registered in the United Arab Emirates

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