CITY TYCOONS, LAWYER FIGHT OVER SH15B PROPERTY

By our reporter

www.mknewslink.com

In Kampala

A bitter row has erupted between city lawyer, Deox Tibeingana, and city businessmen Godfrey Kirumira, his son Gideon Kirumira and a one Andrew Tumwebaze Mirembe over prime property valued at over sh15b.

In three separate civil suits filed at the commercial division of the High Court against Godfrey Kirumira (suit no 800 of 2019), Gideon Kabuye Kirumira (suit no 979 of 2019) and Kirumira’s in-law Andrew Tumwebaze Mirembe (suit no 798 of 2019), Tibeingana accuses the trio of conniving to possess his property. He also accuses Godfrey Kirumira of issuing a forged land title.

Tibeingana says that the tycoon is among the financers (money lenders) of his business with whom they have had series of transactions.

They met through a mutual business friend before Mirembe lent Tibeingana money to enable him pay off the landowners pending processing of condominium titles for his real estate company – Rivonia Homes Limited.

However, Tibeingana says they fell out after Mirembe was paid sh700m by way of property in Najjera, Wakiso district, out of the sh2.1b he (Mirembe) lent him. When called upon to receive the balance, he reportedly became elusive and started claiming that he had bought the suit property since the titles were now registered to his name.

“I needed quick money to pay the then registered proprietors, who had allowed me to start construction and pay after a set period. I needed to first create condominium titles to enable me to obtain advance payments from clients so as to pay back the moneylender. In my projections, this was to last a maximum period of three months,” Tibeingana said.

The apartments, which are all under construction, include; 12 located on plot 7A along Chwa II Close and six on plot 55 along Chwa II Road, both in Mbuya, Nakawa Division, Kampala.

Tibeingana complains that since December last year, he has been chasing after Mirembe to clear the balance and obtain the titles as well as the transfer forms, but he (Mirembe) has completely declined to show up for meetings.

Earlier, Tibeingana notes that Mirembe had shown interest in receiving payment when he accepted the sh700m and participated in meetings with the bank that was processing mortgages for buyers.

“Clients book off-plan and I build for them apartments. Upon completion, I hand over the apartments with titles. Some of my clients even wanted to pay Mirembe direct through his bank account, but he refused to execute the memorandum of understanding that the bank required us to sign before the money could be wired to him. He wants to grab my property. That is theft!” Tibeingana explained.

Although they declined to be quoted on the record, several of Tibeingana’s clients confirmed that they have made partial payments to the lawyer to develop for them apartments, adding that the handover of the flats was long overdue. They also confirmed that they owe Tibeingana balances.

Through his lawyer David Sempala, Tibeingana has now filed a suit in the High Court in which he wants the court to allow him to deposit Mirembe’s money on the court’s account and direct the businessman to surrender the titles for his apartments

Tibeingana has also placed caveats on the properties, apart from the six in Najjera, which he says he forfeited to Mirembe at sh700m.

“I am demanding over sh7b in balances from my clients, but they say they cannot pay the balance if I have no titles. Some of them have dragged me to court already. This has affected my other projects, including another 27 apartments I am building in Mbuya,” he pointed out.

Tibeingana states that due to Mirembe’s action, his integrity has been seriously damaged amongst his clients, suppliers, and creditors, on top of locking money to his business. “Imagine someone holding onto property worth sh10b over a sh1.4b balance!”

In the suit, Tibeingana wants the court to declare that the transaction between him and Mirembe was purely of a money lending nature and the move by the defendant to transfer the land into his names was fraudulent, and a breach of the Tier 4 Microfinance Institutions and Money Lenders Act and other laws.

He is also seeking a declaration that the registration of Mirembe as the registered proprietor of the above-described land which was given to him as security for a loan is unlawful.

Tibeingana is also seeking, “a declaration that once the defendant was called upon to pick the money lent and refused, the interest stopped running from that date, and an order that the defendant should relinquish all his interest in the plaintiff’s Certificates of Title and get paid the money lent plus reasonable interest due at the time he was called upon to pick his money.”

He is also seeking an order of a permanent injunction to be issued against Mirembe and his agents or any person claiming under them restraining them from interfering with the plaintiff’s peaceful and quiet possession of the suit land.

Tibeingana asked the court for a consequential order cancelling any entries of registration of the suit land in the names of Mirembe and an order for payment of general damages for economic loss and discomforted visited on Tibeingana.

The trio is expected to file his defence within 15 days. When contacted on the matter, Mirembe said; “the only comment I can give you is that I purchased those properties from him.”

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