Dr Magoola Challenges Equity Bank Over Premature Sale of Properties Amid Court Battle

Businessman Dr Matthias Magoola, founder of Dei BioPharma Ltd, has strongly contested a move by Equity Bank to sell several properties belonging to his companies. Through his legal representatives, Muwema & Co. Advocates, Dr Magoola argues that the auction notice published on November 5 is both unlawful and premature, given that ongoing legal battles regarding the true loan balance are yet to be resolved.

The dispute centers around massive financial claims between the companies—including Del Industries International Ltd and Dei BioPharma Ltd—and Equity Bank (U) Ltd and Equity Bank (K) Ltd. In August 2024, the firms challenged a bank demand amounting to Shs82 billion and $43 million, disputing how their loans were consolidated during restructuring. Although a consent order initially appointed auditors, subsequent disagreements over the independence of the audit process led to further legal contestations.

Following a series of court applications and a dismissed High Court challenge in July 2026, Dr Magoola’s legal team filed an appeal. On September 9, 2026, the Court of Appeal issued an order staying further High Court proceedings pending the determination of the appeal. Legal counsel contends that the banks’ decision to advertise properties in areas such as Matugga, Luzira, Muyenga, and Seguku directly undermines this judicial process.

The lawyers maintain that their clients are willing to clear any legitimate debt once a transparent and independent audit establishes the actual figures. In the meantime, prospective buyers have been warned that participating in the advertised auction is done entirely at their own risk. Read more about this development in the Daily Monitor.