Engineer George William Kiyega has accused DFCU Bank of engaging in fraudulent and illegal transactions related to his land titles.
Kiyega explained that in 2009, he entrusted DFCU Bank with the safekeeping of his land title for a property situated in Bunamwaya, Plot 7347, Block 265, located in Kyabago-Kyadondo. He further shared that in 2014, he obtained a project in Soroti, which required a performance guarantee under the Uganda Development Corporation (UDC). The contract stipulated that 10% of its value be used as a guarantee.
“The performance guarantee was issued by DFCU Bank, and after completing the contract to the employer’s satisfaction, I expected a smooth process,” Kiyega stated.
However, Kiyega’s 15-year relationship with DFCU Bank has now become a legal case study at the Law Development Centre.
Following the Soroti project, Kiyega applied for a second loan of UGX 200 million through his company, Wills International Engineers and Contractors Limited. He later secured an additional facility of UGX 220 million, both of which were tied to the same land in Kyabago-Kyadondo. He confirmed that he had signed all the necessary letters and mortgage documents for proof.
To his shock, Kiyega began receiving threatening letters from DFCU Bank with notices to sell his land, despite being up-to-date with his loan repayments. Suspecting foul play, he scrutinized the documents and discovered what he described as fraudulent transactions, prompting him to take legal action against the bank.
“DFCU Bank sent us threatening letters regarding Plot 7346, yet I was diligently servicing my loans. When I reviewed the documents, I found clear evidence of fraud, which led me to sue the bank,” Kiyega said.
Kiyega revealed that when he sought a civil suit, he was ordered to pay UGX 210 million within 30 days. With financial assistance from a fellow engineer, he managed to comply with the court’s directive.
“I was instructed to pay 50% of the alleged outstanding amount, which included UGX 73 million for the performance guarantee,” he explained.
Kiyega took the matter to the Court of Appeal, which ruled in his favor. “The court ordered DFCU Bank to restore all income balances on Plot 7347 and to pay damages for the fraudulent and illegal mortgages,” he added.
Despite this victory, Kiyega expressed frustration that his complaint to the Bank of Uganda remains unresolved. The central bank has not taken definitive action on his case.
The Bank of Uganda’s Head of Communications stated that they are monitoring the situation, noting, “We reached out to DFCU Bank and established that they are working with the customer to address his concerns.”
Kiyega’s decade-long protest over alleged fraud and forgery by DFCU Bank remains in limbo, as the Bank of Uganda continues to monitor negotiations between the two parties.
This is not the first time DFCU Bank has faced controversy. In 2017, the bank was involved in a high-profile legal dispute when it illegally occupied buildings belonging to Meera Investment Limited. The court ordered DFCU Bank to vacate the premises and pay damages and costs to Meera.
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