Magoola challenges auction of Dei properties in Shs 148bn Equity bank loan dispute

What the report says

Businessman Dr Mathias Magoola and his companies, Dei Industries International Ltd and Dei BioPharma Ltd, have moved to block a planned auction of several properties tied to a loan dispute with Equity Bank, according to The Observer. Their lawyers at Muwema & Co. say the bank is seeking to recover balances that have not yet been conclusively determined by the courts, including disputed sums described in the article as Shs 82 billion and $43 million. The challenged sale is said to cover eight properties in Kampala and Wakiso districts, including the Dei pharmaceutical plant at Matugga and other commercial sites in Luzira, Katwe, Muyenga-Kisugu, Kitende, Seguku and Kyamuli-Kungu.\n\nThe underlying dispute dates back to 2024, when the borrowers questioned the bank’s calculations and asked the High Court for an account, audit and reconciliation of the loan accounts. The article says the case later led to a consent order for an independent audit, first involving KPMG and then Clayton & Co after a change in the audit process. The companies have also challenged parts of that process in court.\n\nThe Observer reports that the audit later placed the alleged debt at about $39.91 million, or roughly Shs 147.7 billion, as of June 28, 2025, while the borrowers appealed against the ruling. The Court of Appeal then stayed the main case in September 2026 pending the intended appeal. The lawyers argue that auctioning the properties now could undermine the court process, while the banks maintain their recovery claims. The dispute also touches on public investment in Dei BioPharma, which the article says has attracted significant government funding and parliamentary scrutiny.