UDB & Newvision to be sued for misrepresentation of borrowers’ Loans status
Representatives of close to 100 companies which were published in an article and listed as beneficiaries of bail out from government due to Covid-19 pandemic have threatened to sue Uganda Development Bank (UDB) and The New Vision over misrepresentation of their loan status.
A story appeared in the New Vision of 18th March 2021, listing a number of companies that they wrongly stated had gotten bail out cash from government through the bank Uganda Development Bank (UDB) yet many of the companies listed were borrowers who had running securitized loans got from the bank in the usual normal way of borrowing.
These are companies that were listed in the article
“Many applied for their loans and had them running much way back before the corona period. It was therefore annoying to portray the normal regular borrowers who are paying their regular loans at the bank’s usual lending rate for long term borrowing of 14 to 15% to be listed as beneficiaries of a bailout from government which is actually non-existent,” a source said.
The representatives went to add that if the managers of UDB and New Vision don’t come out quickly to retract or correct this story, they are likely to suffer huge law suit damages.
They added, “The story is not only incorrect but puts the bank in a terrible position for violating borrower’s rights. Any business that will sue will walk way with good court awards”.
The owners of the listed businesses said it is extremely unfair and misleading to portray a business of a borrower who borrowed a loan on bank terms and is working hard in this pandemic constrained business environment to pay the loan with interest and is having his/her security held by the bank, as a beneficiary of a non-existent “bail out” scheme.
They described the article as bogus and annoying. “Then UDB should close and not open for business. And the usual lazy New Vision goes ahead to publish this distortion without verification,” they added. Watch the space!
