Stanbic bank has taken over petroleum products company Mogas due to failure to service her three-year-old loan. Basing on recent reports, Stanbic bank has put Maestrol Oil and Gas Solution (MOGAS) under receivership in a bid to recover it’s money that the company has failed to pay during the three year term limit that was set
Despite media attempts to discover how much money was being spoken about, neither of the two companies could disclose the exact amount of money being spoken about.
Through her lawyers Ligomarc Advocates, the bank stated in a notice with intention to take over the fuel company that Kabiito Karamagi had been appointed as the receiver of Maestrol Oil and Gas Solutions, untill the bank recovers it’s money.
This shall not only be within the confines of Uganda but rather, the MOGAS assets within the East African Community countries shall also be under the receivership of Stanbic bank as stated by Ligomarc’s letter since those countries are also indebted to the bank.
Therefore, this shall include the fuel station which are at least 12 within Kampala with more in Jinja, Entebbe as well as the modern oil terminals located at Dar es Salaam and Tanga in Tanzania.
During the time period when the bank hopes to recover her money, Kabiito is in charge of ensuring the smooth running of the company as he gathers money from operations and gives it to Stanbic bank to clear the loan.
According to the bank, before resorting to this, they had tried all peaceful means to recover the money from Mogas in vain which forced them to resort to the mechanisms in place now.