Magoola challenges Equity Bank property auction as Shs39.9b loan audit dispute continues
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Businessman Matthias Magoola and two companies have contested a November 5 notice of intended sale of land in Wakiso and Kampala, saying the auction disregards a Court of Appeal order staying the loan dispute.
Businessman Dr Matthias Magoola has challenged Equity Bank's planned sale of several properties belonging to his companies, arguing the move is premature because a dispute over the outstanding loan balance is still before the courts. Magoola is the founder of Dei BioPharma in Gombe Division, Nansana Municipality, Wakiso District, and is acting with Del Industries International Ltd and Dei BioPharma Ltd through Muwema & Co Advocates.
The lawyers contested a November 5 notice of intended sale published in a daily newspaper. According to the notice, the properties were advertised by Equity Bank (U) Ltd and Equity Bank (K) Ltd through auctioneers appointed by the lenders to recover outstanding loan balances, interest and fees.
The listed properties include pieces of land in Matugga, Kamuli-Bukungu, Luzira, Katwe, Muyenga-Kisugu, Kitende and Seguku, alongside land in Kyadondo and Busiro and properties along Sixth Link Road in Luzira.
The dispute dates back to August 2024, when the companies filed High Court Civil Suit No. 929 of 2024 challenging the banks' demand for Shs82 billion and $43 million. The companies questioned loan consolidation practices during restructuring, alleging that irregular balances and interest had been included in the facilities. On December 19, 2024, the parties entered a consent order appointing KPMG to conduct a comprehensive loan audit.
The lawyers say the audit process was compromised after their clients found the banks had an ongoing business relationship with the firm, prompting Miscellaneous Application No. 2694 of 2024, which revoked the appointment and provided for the Institute of Certified Public Accountants of Uganda to nominate an independent auditor. They allege the banks later engaged the institute without involving their clients, resulting in the appointment of Clayton & Co.
In May 2025 the companies filed Miscellaneous Application No. 1121 of 2025 challenging the integrity and independence of the audit. Despite the pending application, the auditor issued a report stating the clients owed Shs39.9 billion as of June 28, 2025. The companies dispute the finding and accuse the banks of failing to honour a commitment to refinance their pharmaceutical project at Magunga after the clients paid Shs120 billion, equivalent to about $30 million, in December 2024.
On July 29, 2026, the High Court dismissed the companies' application challenging the audit process. The companies filed a notice of appeal and Civil Application No. 971 of 2026 in the Court of Appeal, and on September 9, 2026 the Court of Appeal issued an order staying proceedings in the High Court case until the appeal is determined.
The lawyers argue that advertising the properties disregards that order and undermines the judicial process. They said their clients remain willing to settle any legitimate obligations once an independent audit establishes the actual loan balance and interest due, and warned prospective buyers that anyone participating in the advertised sale would be acting at their own risk.