Greenland sale is fraud - Kiggundu -12/11/2002
By Siraje K.Lubwama
| Former Greenland Bank managing director Sulaiman Kiggundu |
Former Greenland Bank managing director Sulaiman Kiggundu yesterday said the sale of Greenland Towers was fraudulent.
The 8-year-old 11-story building on Kampala Road was sold Friday to Hilton Insurance Services at $4m (Sh7.4b).
The building was co-owned by Greenland Bank and FIBA, its associated company that owned 75 percent.
�I have never at any one time mortgaged this building to Bank of Uganda as it is claimed, that building has been sold under a mortgage,� Dr. Kiggundu said.
He issued a statement from Luzira Prison where he is serving a six-month sentence for defaulting on a Shs 600m loan.
Kiggundu said that though in November 1998 he applied for a Shs 10bn loan security from Bank of Uganda to support �our clearing account� and indicated that he would give their building (Greenland Towers) as security, BOU never gave them the said money but instead took over the bank on Dec. 5.
Kiggundu, who is scheduled to finish his sentence Dec. 15, said that his imprisonment was pre-planned to put him out of the way so that this �fraudulent sale of our family silverware� can take place.
�Whereas four Banks were closed, no other Managing Director except me was detained and charged. Whereas TransAfrica bank is said to have lent Sh3b out of its deposit base of Sh 6b, the Managing Director was never arrested and charged as in my case and the Bank has not been closed, instead it has been merged with Orient Bank,� Kiggundu wrote.
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