Stanbic Bank Uganda Ltd. is under intense public and legal scrutiny following a High Court ruling that exposed an allegedly illegal and fraudulent sale of a client’s property.
UG Exclusive has learned that the case in question has stirred outrage across the Teso sub-region, dominating radio talk shows and sparking widespread debate on social media.
The controversy revolves around Plot 14, Akakai Lane, located in Oderai Ward, Soroti City West Division, a property owned by businessman Abunyang Emmanuel, proprietor of Strikers Bars and Lodges in Soroti and Moroto.
Civil Suit No. 28 of 2021, filed by plaintiffs Sarah Abuto and Isaac Eriaku, brought before the High Court, resulted in the Ministry of Lands, Housing, and Urban Development cancelling land title (LRV 3481, Folio 9), citing fraudulent acquisition. The duo challenged the unlawful sale of their guesthouse and the theft of its properties and equipment. The defendants included Stanbic Bank and the current occupant, Abunyang Emmanuel.
According to court documents, Stanbic Bank, through its agents S&L Advocates (formerly Sebalu and Lule), sold the property for UGX 95 million without conducting a proper valuation, issuing notice to the owners, or adhering to the legal procedures, such as advertising and conducting a public auction. Evidence revealed that no consent was given by the plaintiffs for the transaction.
Shockingly, S&L Advocates received UGX 12.7 million as commission and for advertising and auction processes that never occurred—actions in violation of the Mortgage Regulations, S.I. No. 2 of 2021. These regulations require a current market and forced sale valuation before any mortgage sale.
In his ruling, Justice Dr. Henry Peter Adonyo declared the sale illegal and fraudulent, noting it was carried out without a public auction or private treaty. The court found that the property was sold on March 24, 2016, yet a letter requesting valuation was only issued on April 14, 2016, and the resulting report was dated April 25, 2016, after the sale.
An earlier independent valuation in November 2015 had placed the property’s value at UGX 200 million. However, Stanbic later enlisted Semaganda Associates to provide a new valuation that matched the pre-determined sale price of UGX 95 million.
While Stanbic Bank claimed a public auction had been conducted, evidence presented by M/S Omongole & Co. Advocates showed that the supposed bailiff, Turyagenda Elly, was unlicensed. His statement was struck from court records after he failed to testify and disappeared.
During cross-examination, Stanbic Bank’s legal officer, Mutahunga Norris, attempted to disown the contents of the sale agreement. However, the court ruled that parties cannot deny agreements they have benefited from, barring Stanbic from denying the March 24 sale.
Stanbic Bank has since filed a Notice of Appeal and Miscellaneous Application No. 147 of 2024 seeking a stay of execution. In an affidavit supporting the application, Arnold Atwine, the bank’s head of litigation, shifted blame to Abunyang, alleging that fraud on his part led to the cancellation of the title.
In a twist, a lawyer close to Abunyang disclosed that the businessman admitted paying UGX 280 million for the property but was instructed by bank officials to acknowledge a sale price of UGX 95 million. This discrepancy allegedly prompted the post-sale valuation to be backdated to justify the transaction.
Supporting this claim is a letter dated September 25, 2024, from Alliance Advocates to Stanbic Bank. It cites a valuation conducted in August 2022, putting the property’s value at UGX 540 million. The sharp increase was attributed to supposed improvements by Abunyang, raising suspicions of an effort to recoup kickbacks disguised as property upgrades.
This case echoes a similar scandal—Macdowel Food & Beverages Ltd v. Stanbic Bank Uganda Ltd (Misc. Cause No. 568 of 2020)—where senior bank officials were implicated in self-dealing through the underpriced sale of a client’s property. While the court awarded UGX 400 million in damages, no disciplinary action was disclosed against the implicated officials.
Eviction and Vandalism: Abunyang Flees Property After Legal Blow
As the plaintiffs moved to reclaim their property, their lawyers received a letter dated October 28, 2024, from Alliance Advocates, acting on behalf of Abunyang, stating that he had complied with the Registrar of Titles’ directive and surrendered the title for cancellation. The letter proposed a peaceful handover by November 1, 2024.
However, on October 29, the plaintiffs discovered that Abunyang had allegedly vandalized the premises. Reports were filed with Soroti’s Resident City Commissioner (RCC), Mr. Peter Pex Paak, who tried but failed to contact Abunyang.
Acting on the RCC’s guidance, the plaintiffs visited the property with police officers, only to find that Abunyang had fled after allegedly removing 11 interior doors with locks, six door locks, a water heater, and leaving behind an unpaid water bill of approximately UGX 500,000.
A police officer at Soroti City Western Divisional Police Station, who requested anonymity, confirmed that a case of theft and vandalism had been registered and that Abunyang, a former Umeme employee, was now in hiding.
“We have no option but to arrest him,” the officer stated.
Mr. Echobu David, the Local Council 1 Vice Chairperson, confirmed in an interview that he visited the scene with police and gave a formal statement.
When contacted, Mr. Zeere James of S&L Advocates, who had been present at the site for the anticipated handover, distanced the bank from the acts of vandalism. “That is Abunyang’s responsibility, not Stanbic Bank’s,” he said.
