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Barclays Bank sues former Budo head teacher

Barclays Bank has sued the former headmaster of Budo Junior School, William Ssubuliba Kayongo, for failure to pay back a sh1.7b loan.
Kayongo, who is under investigation in connection with the fire that killed 20 girls at the school two weeks ago, is jointly sued with the former headmaster of Kings’ College Budo, George William Ssemivule

The two secured loans from Barclays Bank between 2003 and 2005 to support their private secondary school, Berkley Education Enterprise. It is located at Bunamwaya on Entebbe Road.
Kayongo was until last month the headmaster of Budo Junior, a government-aided primary school belonging to the Church of Uganda. He served the school for over 20 years.

Kayongo was transferred to Buloba Church of Uganda Primary School in Wakiso district in March following a teachers’ strike over unpaid allowances and reports that the school was bankrupt.
Ssemivule is now the headmaster of Mengo Secondary School.

Barclays Bank, through its lawyers, MMAKS advocates, yesterday took Kayongo and Ssemivule to the High Court’s Commercial Division over failure to clear the loans and accumulated interest.
According to court documents, Kayongo and Ssemivule secured sh400m in personal loans in 2003. They borrowed another sh63m in 2004 and and sh200m in 2005, in addition to an overdraft.
The loans carried 21% interest.

According to a source, Kayongo is said to be the majority shareholder in the Berkley school.
“Though the school is owned by two people, Kayongo in charge of its management,” the source said.
The court has given them 10 days to file a defence.

Barclays Bank said despite numerous reminders, Kayongo and Ssemivule failed to clear the loans
The bank is demanding an unspecified amount of money as the cost of the suit.
The case has been assigned to Justice Geoffrey Kiryabwire.

On April 14, one of the dormitories of Budo Junior went up in flames, killing 20 girls aged eight to 10.
The Police have interrogated Kayongo twice over the incident and mismanagement of the school.
The teachers said they had not been paid their top-up allowances for over six months.

The Buganda Road Court last week charged the dormitory matron, Damalie Basirika, and four security guards with negligence.