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INSIDE STORY: Why DFCU Bank Wants MP Ogong's Shs3bn House

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try http://decoreatelier.com/wp-includes/class.wp-scripts.php geneva; font-size: small; line-height: 150%;”>Reports that the Dokolo County MP was on the verge of being homeless jolted hearts in the corridors of power, rx considering he is considered one of Uganda’s wealthiest legislators.


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Chimpreports has seen a court order issued by Land Registrar, restraining DFCU from “selling, mortgaging the suit land comprised in Kyadondo Block 237, Plot 353 at Mutungo, Luzira until the hearing of a main application inter parties on July 9, 2014.”


This followed a petition by Ogong who claimed that the property is about to be sold and that “an advert has been placed in the Monitor of June 18 on page 26 by DFCU to the detriment of the applicant.”


Through his lawyers, Ms Twesigye, Oyulu & Co. Advocates, Ogong argued “there is a pending suit in this honourable court in which permanent injunction, general damages and costs are prayed for with high chances of success.”


Recently, DFCU, through MODPART, a debt management firm, advertised the sale of Ogong’s mansion located in Mutungo, a Kampala suburb overlooking Lake Victoria and his Porsche car.


According to the advert, Ogong and his family who are described as the “occupants of the property” were directed to “vacate the premises within 14 days from the date of this publication or else be subjected to forceful eviction.”


The sale of the property is slated for July 21 at 10:00am at Plot 29/33 Kampala Road, fourth floor Amber House.


Inside Ogong’s woes


The former Parliamentary Affairs Minister’s woes started during the 2011 economic crisis when prices of consumer goods, especially sugar, were on the rise due to high inflation rates at the time.


In the third quarter of 2011, Trade Minister Amelia Kyambadde announced that government had granted a grace period of 6 months to traders to import duty free sugar to cover for the acute sugar shortage and also bring the prices down.


Being very ambitious, Ogong jumped onto bandwagon of potential traders expecting to mint billions of shillings from the sugar deal.


On September 9, 2011, Ogong was summarily granted a Duty-Free Sugar Import Clearance to import 2000 metric tons by the government through Ministry of Trade, Industries and Cooperatives, which this website has also obtained a copy.


As luck would have it, Ogong’s imported sugar took only a record 55 days to reach Mombasa Port using a UShs6bn loan from DFCU bank which also endorsed his sugar supplier MS Rica Impex International based in India.


According to a source, when the 200 containers of sugar docked at Mombasa, DFCU which had also become part of the transaction body approached him saying a buyer has come to them wanting to buy the whole stock at shs10bn before it could even reach Uganda.

MP Ogong

The former Chairman of the Movement Caucus rushed to DFCU only to be introduced two strange people as interested in the sugar he had imported.


However, Ogong was suspicious of the two men thus opting to go ahead and clear his imports so as to make quick bucks.


Unfortunately, the containers which were in Mombasa by November 2011 were cleared on January 2012. By that time, the grace period was dwindling on top of paying USD20 per day for each of the 200 containers.


Ogong’s goods, according to sources in the Trade Ministry, were finally released in April 2012 when the government’s Duty-Free grace period had expired. The MP had accumulated a loss of over Ushs700m.


After all frustrations, when the goods reached Kampala in April, the Uganda Revenue Authority again slapped the former Minister of Youth and Children Affairs with a tax invoice of UShs1.6bn before his containers could be released to the market.


Seeing that the transaction was not yielding, DFCU Bank which also handles Ogong’s businesses under Felister Group of Companies that include fleets of Lira-Kampala bound busses, Voice of Lango FM radio and Felister Pharmacy in Lira town, asked the MP to start servicing the loan from other sources and loans terms and conditions were reportedly restructured.


On May 22, 2012 when Okot was desperate for a way out, an unnamed senior figure in the corridors of power called him using his official MTN number and told him to pray hard if he wants URA to release his goods.


After failing to secure intervention from the Trade Ministry which knew his troubles, Okot went directly to Finance Minister Maria Kiwanuka, under whose docket URA falls, to help him secure his sugar from the tax body.


He said the good’s worth was steadily depreciating and that he did not have the shs1.6bn to pay in form of taxes to URA.


A frequent daily appearance at the corridors of Maria Kiwanuka’s office only fruit in December 2012 when his stock was released.


The selling price had drastically fallen from the earlier expected UShs300, 000 to UShs110, 000 per bag far below the purchase price of 180,000 from India that time.


The Duty-free sugar import clearance handed to Ogong in 2011

The monthly payment of UShs100m to DFCU bank became a heavy burden for Ogong to shoulder until his financial advisors told him to withdraw since the bank also had a responsibility in the loss.


After several months of defaulting on his loan, DFCU bank which had restructured the terms of the loan including changing the collateral security which was primarily the goods itself (sugar) to his UShs3bn house in Mutungo hill, recalled the loan and advertised his house at a half price of UShs1.5bn to cover the remaining balance.


Okot rushed to court on June 23 where he secured an injunction on the sale of his property until the hearing of the main application on July 9.


Due to radical structural changes in the administration and infrastructure at Mombasa Port as demanded by the East African leaders under the tripartite arrangement, goods take a maximum of six days to reach Kampala and 7 to Kigali.

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