Muwema & Co. Advocates, the lawyers for businessman Matthias Magoola, have warned the public against buying his properties advertised for auction, saying no court has established the debt behind the sale.
In a notice, Muwema & Co. Advocates said they were responding to a notice published in the New Vision on November 5, 2026 by Jald (U) Ltd, auctioneers appointed by Equity Bank (U) Ltd and Equity Bank (K) Ltd.
The Jald notice listed eight properties for sale by public auction or private treaty, 30 days after publication.
They include land at Matugga, Kyamuli-Kungu, Luzira, Katwe, Muyenga, Kitende and Seguku. The Matugga site is home to Dei BioPharma’s pharmaceutical plant, in which the government has put about Shs723.4bn.
The lawyers said the notice was an act of “active malice and utmost bad faith”. They said no legitimate loan balance has been proven so no sale can pass good title to a buyer.
How the dispute began
In August 2024, Dei took Equity Bank (U) and Equity Bank (K) to court after the banks demanded Shs 82 billion and $43m. Dei says the sum was inflated through unfair lending practices, wrong interest charges, and irregular loan consolidations.
In December 2024, the two sides agreed that KPMG would audit the loans. Dei later alleged the banks had hidden a business relationship with the firm. KPMG was replaced, and the Institute of Certified Public Accountants of Uganda (ICPAU) was asked to nominate another auditor.
Dei says it paid Shs120 billion that month after the banks promised to refinance its Matugga project. The lawyers say the banks did not keep that promise.
ICPAU’s process began in April 2025 and ended with the appointment of Clayton & Co. Dei says it was shut out and its written objections ignored. On 22 May 2025, it went back to court to challenge the process.
The auditor’s report later put Dei’s debt at $39,911,245 as of 28 June 2025. Dei rejects that figure.
On July 29, 2026, the High Court dismissed Dei’s challenge and set the main suit for hearing on November 13, 2026. Dei appealed. On September 9, the Court of Appeal stayed all High Court proceedings until the appeal is decided.
Dei’s lawyers say the audit report has not been adopted by the court, so the debt remains undetermined.
They described the auction as an attempt to pre-empt that process, and said they will seek legal sanctions against the banks and their agents.
