Staff
President Yoweri Museveni has given former Uganda Cranes captain Andy Mwesigwa Shs392 million to meet a court requirement in his legal battle with ABC Capital Bank over a disputed Shs1.3 billion loan.
The Commercial Court in Kampala ordered Mwesigwa to deposit the money as security before his case against the bank could proceed. The amount represents 30 per cent of the debt claimed by the bank.
Speaking to the media, Mwesigwa said Museveni had paid the entire amount and promised further financial support once he and the bank agree on the actual amount owed.
The dispute stems from a Shs480 million loan obtained by Mwesigwa’s AMESCO High School in Wakiso District on December 30, 2019. The school reportedly used the money to refinance an earlier loan from Equity Bank Uganda and complete two classroom blocks.
The loan was to be repaid in 16 instalments, but the school missed some payments, attracting additional interest and penalties. ABC Capital Bank subsequently began recovery proceedings, issuing statutory notices between March 2021 and March 2026.
Mwesigwa has blamed the school’s financial difficulties partly on the COVID-19 pandemic. He disputes the bank’s calculations, questioning how interest reversals, penalties and compounded interest were handled as the outstanding balance increased.
ABC Capital Bank, however, told court that it wrote off the loan on June 28, 2024, when the balance stood at Shs787 million, but maintained that the write-off did not cancel his obligation to repay the debt.
The main case is expected to proceed as the two parties negotiate over the disputed amount. Meanwhile, the court order blocking the sale of the school property remains in force.
