Chances for government’s takeover of Busoga university have reduced following new updates showing how the University is chocking on debts after the institution’s decision to mortgage its campus land for a Shs2.6 billion loan.
In the last meeting between the government and the University’s founding body, Church of Uganda, President Museveni promised takeover of the University on a condition that Busoga University surrenders the land it sits on.
More details show that the government was ready to buy the land if the University found a hard time in surrendering it freely. As meetings for takeover continued taking place, the government discovered that the university had mortgaged its land for a loan in Bank of Baroda.
A committee headed by Dr Chrysostom Muyingo is expected to visit the university’s campus today for assessment of the status before coming up with a statement to the president. Some of the mortgaged assets include plots 73 and 83 in Kigulu, Buwooya in Iganga District in the name of Busoga University and plot 95-111 on Saza Road in Bugiri measuring 8.174 acres with a leasehold of 49 years and 12 postdated cheques.
Associate Prof David Lamek Kibikyo, the vice chancellor, Mr Edward Gaamula, and the Planning and development chairperson, Mr Joshua Kitakule, were presented as guarantors for the loan. The Shs2.6 billion loan was acquired in April 2016 when its movable assets and land, the bishop’s house and offices of Central Busoga Dioceses were agreed to be auctioned by the bank on failure to pay the loan.
Our snoops have confirmed that the university was paying Shs54m on the loan per month until last year when the National Council for Higher Education closed it over failure to meet the council’s minimum standards.
