Biyinzika proprietors seek government bailout to settle bank loans

This was revealed in an advertisement that ran in one of the Ugandan daily newspapers. The advertisement indicated that the business’s properties that are going to be auctioned should it fail to pay include: 41 acres of land in Kasambya and Namusunsula with hatcheries that have a capacity of 460,000 chicks per week, 100 acres of land in Bulemezi, and Dina Apartments in Ntinda.

"Duly requested by our client, the registered mortgage, a financial institution, we do hereby give notice of the intention to sell the land and developments described below to realise money due to the mortgagee, unless the debtor (Biyinzika) shall pay the monies due to the mortgage together with the associated fees and costs of recovery before the date of sale (30 days after the advertisement)," the advertisement by Tumusiime, Kabega & Co. Advocates in one of the dailies read.

Pulse Uganda has since learned that the company owes two banks money to the tune of sh21 billion.

While speaking to New Vision, a Ugandan newspaper, Isaac Mukasa, one of the eight directors, said that the company’s operations have come to a standstill as they fight tooth and nail to save the properties, most especially land located in Ndejje, which is the company’s lifeline.

Mukasa appealed to the Government of Uganda for a bailout of sh30 billion to save the jobs of Ugandans employed by the company.

"Our business partners have gone all out to strangle us financially. All we need is a proper financial plan. but the banks are adamant. We are calling on the government of Uganda to bail us out with sh30 billion. This would help save the jobs of hundreds of Ugandans employed at the company. This would enable us to pay off sh21 billion and remain with sh9 billion for operations," he told the newspaper.

He added, "All we are asking for is a financial infusion. This company has provided a livelihood to hundreds of people. 300 are full-time employees, and about 5000 people supply us with inputs as well as sell our produce."

He further said that the company owes one bank sh10 billion and another sh11 billion bringing the total number of money owed to the bank to sh21 billion.