AMPALA — Tycoon Abid Alam is in trouble for defaulting on loans worth over USD 10 million.
Reports indicate that his Jinja based Rolling Steel Mills is facing auction over a huge debt owed to a top city bank, whose name is withheld over customer confidentiality.
It is reported that over the last few weeks, the bank in question has published notices, backed by the Court Order to have Abid Alam’s property put under receivership over its non-performing loans.
The flashy businessman has become a poster boy for defaults on massive loans piled up after the Busoga Kingdom allegedly cancelled title deeds to large chunks of land that were associated with him.
Some of the land is said to have been used to secure loans in excess of USD 10 million from two banks.
He defaulted on the loans.
Abid Alam has been entangled in several court cases, most of them involving land ownership.
It is said the tycoon’s whole business empire is scrambling over the same only that banks usually treat corporate customers with kid gloves — often bending over backwards to accommodate their needs.
Most lenders are willing to disburse quick loans to the wealthy businessmen on friendlier terms in an effort to entice them to bring more business — a strategy that has, however, left many exposed.
His Alam Group is involved in steel manufacture, aluminum processing, agricultural implements, footwear, sugar manufacture, electricity generation, floriculture, real estate development and management, tourist lodges and motels and the manufacture of liquid petroleum gas, among other investments.