5000 clients lose billions after Jomayi liquidation
At least 5000 clients stand to lose billions of shillings after Jomayi Property Consultants Ltd, previously Uganda’s leading real estate firm, has been forced into liquidation due to insolvency.
The clients have for years demanded for their land titles purchased from various Jomayi estates in vain until their last hope was buried on Monday after a court decision to declare Jomayi insolvent following NC Bank’s unsuccessful attempt to retrieve sh868,250,000 from Jomayi.
Jomayi’s debt with the NC bank started in 2018 when Jomayi entered purchase agreements with Mr. Ssemwogerere John Baptist who had mortgaged his land 50.2 acres for 1.506 billion shillings in Busiro Block 410 Plot 20, Ssisa, Wakiso District, to NC Bank Uganda Limited for loans to Value Trading Stores Limited.
They agreed on six 251 million shillings installments, with overdue amounts incurring 21.5 percent interest. However, Jomayi failed to meet the payment schedule. Consequently, NC Bank sued in 2018, seeking 1.165 billion shillings, the unpaid land balance. They later settled on a consent judgment, requiring Jomayi to pay NC Bank 925,250,000 shillings in ten installments.
Jomayi partially paid but defaulted, prompting NC Bank to demand 868,250,000 shillings by January 2020, failing which insolvency proceedings would commence. The court found Jomayi indebted to NC Bank, unable to pay, and ordered its liquidation.
JOMAYi an acronym for its executive director, Joseph Yiga Magandazi has had several legal battles involving individual clients who purchased plots of land from the company, former Ministers Mathew Rukikaire and Gen. Henry Tumukunde who have all accused him of failure to pay their debt.
On Friday, May 19 a Daily Monitor advert announced sale of Jomayi’s properties just months after city tycoon Godfrey Kirumira had taken over Yiga Chambers on Plot 20, Old Kampala Road which was headquarters to Jomayi.
