NEWS

Centenary bank sues surveyor for over-valuing borrowers’ properties

Richard Ivan Nangalama, a surveyor and the managing partner of Survesis has been dragged to the High Court by Centenary Bank which is seeking recovery of more thhan Shs314m as a loss it made over breach of contract and professional negligence.

According to Centenary Bank, Mr Nangalama was contracted to survey and value properties located in Bunga, Kampala and Mulamba, Bulemezi in Nakaseke District belonging to Mr David Golola and Mr Joseph Bryan, who wanted a loan from the bank.

However the report which the surveyor availed to the bank indicated that the land in Bunga’s fair value market was at Shs160m and the forced sale value at Shs130m whereas land in Nakaseke was valued at Shs200m to Shs100m.

The bank claims that the mortgagors eventually defaulted on their loan repayment obligations with an outstanding due of over Shs100 and Shs200 which forced it to do a further scrutiny and investigation, finding out that the survey and valuation reports prepared by the defendant were misleading, incorrect and tainted with fraud.

“At all times the defendant (Nangalama) knew that we required the survey and report for the purpose of considering whether to extend credit facilities to the borrower and if so, what amount and on what terms,” reads in part the bank’s claim.

Court documents further indicate that property allegedly belonging to the mortgagors was resurveyed by Synergy Survey and Associates and the report submitted to the bank indicated that the defendant had initially surveyed the wrong or different property from the one he was instructed to inspect,” reads in part the bank’s claim.

The bank also claims that as a result of the gross negligence and fraud of the defendant, it was unable to foreclose the securities in both cases and at the material time suffered and continues to suffer a total loss of more that Shs314m.

The bank avers that the acts and omissions of the defendant were fraudulent, in breach of the professional trust.

The bank claims that as a result of the fraud and negligence of the defendant, it has incurred loss arising from the loans of two mortgagors.

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