Court has ordered Absa Bank formerly Barclays Bank to pay UGX 5.2Billion for fraudulently selling off Progressive Group of Schools.
The group sought for UGX1.3 billion loan however only Shs400 million was given to them, according to documents on Court record.
The bank pretended that their client failed to service the loan and sold the group properties to Luyanzi Academic Foundation.
In 2009, the group through their lawyers, the group, Ab’mooti Investments Ltd and Kaahwa Erisa Amooti dragged the bank and Luyanzi Academic Foundation to court for fraudulently taking over School properties.
In 2019 High Court Judge Wangutusi ruled in favor of the respondents.
The applicants however appealed against the court ruling.
Appearing before court, a panel of judges led by Justice Richard Buteera, Catherine Bamugemereire and Stephen Musota set aside the high court ruling and ordered the respondents to pay Shs400 million for the 13 years.
“The sale, transfer of the applicant’s suit properties by the bank and Progressive Group of Schools is set aside and the registrar of titles is hereby ordered to cancel the transfer and registration of Luyanzi Academic Foundation and reinstate the appellants as the registered proprietors of the suit properties who shall be entitled to vacate possession thereof,” Court ruled.
