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 had ordered Mwesigwa to deposit the money as security before his case against the bank could proceed. The amount represents 30 per cent of the sum ABC Capital Bank claims he owes after a loan secured against his school in Wakiso District was not fully repaid.
Speaking to the media, Mwesigwa said Museveni had paid the entire amount and promised to provide further financial assistance once he and the bank agree on how much he actually owes.
He also revealed that court had directed both parties to begin negotiations over the outstanding loan.
How the dispute started
The dispute arose from a Shs480 million loan obtained by Mwesigwa’s school, AMESCO High School, in Bugwanya Village, Wakiso District, from ABC Capital Bank on 30 December 2019.
The loan carried an annual interest rate of 23.5 per cent and was to be repaid in 16 instalments of Shs54.67 million each. Payments were scheduled for 20 February, 20 June and 20 October every year.
Mwesigwa told court that the school borrowed the money to refinance an earlier loan from Equity Bank Uganda Limited and complete the construction of two classroom blocks.
However, the school failed to make some repayments on schedule. The overdue amounts attracted additional interest and penalties, increasing the outstanding balance.
ABC Capital Bank subsequently began recovery proceedings, issuing several statutory notices of default and sale between 25 March 2021 and 11 March 2026.
Mwesigwa attributed the school’s financial difficulties partly to the COVID-19 pandemic. He said he asked the bank to waive interest after the loan balance had risen from Shs480 million to Shs761 million.
He further said the bank later informed him that interest for 2022 had been revised in line with Bank of Uganda directives and invited him to sign a loan restructuring offer.
However, he maintains that the bank has not provided a clear statement showing how the COVID-19-related interest reversal was calculated.
He has also questioned whether penalties and compounded interest were suspended, whether charges that should not have been applied were removed and whether the resulting loan balance is accurate and lawful.
ABC Capital Bank disputes Mwesigwa’s claims. The bank told court that it wrote off the loan on 28 June 2024, when the outstanding balance stood at Shs787 million.
However, it argued that writing off the loan did not cancel Mwesigwa’s obligation to repay the money under the terms of the loan agreement.
The main case will now proceed as the two parties engage in negotiations over the disputed debt. The court order preventing the sale of the school property also remains in force.
