July 19, 2013

Stanbic Bank Branch Faces Closure Over Shs4m Debt

The Masaka Stanbic Bank branch faces closure over a 3, 839, 640 million shillings property tax arrears.

The bank has been given seven days to clear the accumulated debt or face closure.

Stanbic Bank's branch in Masaka has been given 7 days to pay up a Shs4m debt or face closure
Stanbic Bank’s branch in Masaka has been given 7 days to pay up a Shs4m debt or face closure

The notice issued by Masaka municipality and signed by the Kimaanya-Kyabakuza Division Senior Assistant Town Clerk Muhammad Nfitemukiza accuses Stanbic of accumulating the arrears over three years.

In  a letter dated 16th July, 2013 addressed  to the Stanbic bank manager  Masaka branch and copied to Town Clerk Joseph Kimbowa, Mayor Godfrey Kayemba   Afayo, Masaka Municipality Town Clerk Joseph Kimbowa among others, Nfitemukiza  states that the division has repeatedly tried to collect the tax and been rebuffed.

The debt is said to have started accumulating from 2009.

The Stanbic Bank Masaka Branch is located at Birch Avenue, along Masaka -Kampala road in Kimaanya-Kyabakuza Division, Masaka Municipality.

Speaking to local media at division chamber,s Nfitemukiza said that the Local Government Act (Rating) Act 2005 provides that anyone who defaults property tax his property shall be closed and attached.

But Jenipher Nazziwa, the area Stanbic Bank manager denies that the bank owes the division any property tax. Refusing to speak in detail on the matter, Nazziwa insists that the bank has always paid its property tax dues.

The bank Communication Manager Fred Mugisha, who is authorised to speak on the matter, was unavailable for comment.

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