Pharma Investor Dr Magoola Warns Public Against Buying Bank-Advertised Properties

Prominent pharmaceutical investor Dr Matthias Magoola and his associated companies have issued a public warning advising potential buyers against purchasing several prime properties recently advertised for auction by Equity Bank. Through their legal counsel at Muwema & Co. Advocates and Solicitors, the investors released a Caveat Emptor notice, arguing that any move to sell the properties is premature and unlawful while a multibillion-shilling loan dispute remains active in the courts.

The properties slated for auction—located in upscale and commercial areas including Muyenga-Kisugu, Luzira, Matugga, Seguku, and Katwe—belong to Dr Magoola, Del Industries International Ltd, and Del BioPharma Ltd. According to the legal team, the auction notices issued through Jald (U) Ltd on behalf of Equity Bank (U) Ltd and Equity Bank (K) Ltd disregard binding judicial processes and a subsisting Court of Appeal order.

The legal battle traces back to August 2024, when Magoola’s firms challenged the lenders’ demands totalling billions of shillings, alleging inflated balances and irregular loan consolidations. Although the parties initially agreed to an independent audit, subsequent disagreements over auditor selections and conflict of interest allegations led to multiple legal challenges. The companies maintain that a disputed audit report recommending a payout of nearly $40 million remains legally contested.

Furthermore, the lawyers disclosed that the companies previously paid Shs120 billion to the banks in December 2024 under the premise that their pharmaceutical project in Matugga would be refinanced—a promise they claim was never fulfilled. Although the High Court dismissed a previous application challenging the audit, the Court of Appeal later issued an order staying proceedings until the appeal is fully determined.

While emphasizing that their clients remain willing to settle any verified and legitimate financial obligations, the legal team condemned the bank’s actions as predatory. Prospective buyers have been strongly cautioned that participating in the disputed public auction is done entirely at their own risk. More details can be found in the original report on Nile Post.