MOGAS is now free to do business for the next six months and conclude talks with a one Ola Energy Ltd which was willing to take over MOGAS and pay off a debt that the oil marketer owes Stanbic Bank Uganda.
In a recent development, Maestrol Oil and Gas Solutions Limited famously known as MOGAS Uganda Limited, had been placed under receivership by Stanbic Bank Uganda. This follows MOGAS’ failure to pay back 12 loans it borrowed from Stanbic Bank totalling to UGX 43,181,259, 828 (which includes both the principle and the interest).
According to Vincent Lubuulwa, Stanbic Bank’s senior credit manager, MOGAS took the loans between 2018 and 2020.
Stanbic Bank, in a bid to recover its money, placed MOGAS under a one Kabiito Karamagi as the receiver, a move MOGAS contests.
Geoffrey Rugazoora, the CEO of MOGAS Uganda Ltd, argues that they (MOGAS) had already notified Stanbic that they were in talks with Ola Energy Ltd which was willing to take over MOGAS and pay off the debt. However, with Stanbic’s swift move, this effort was rendered invalid.
Stanbic announced Karamagi as a receiver in September 2021, two months before the MOGAS grace period could run out.
Energy Ministry Orders UEDCL Board to Investigate Top Management Over Performance GapsMOGAS is an integrated downstream oil marketing company dealing in mainly fuel and fuel products operating in seven countries; Uganda, Rwanda, Kenya, Tanzania, Burundi, Democratic Republic Of Congo and UAE.
It is also involved in oil trading, marine and inland terminals, retail networks and lubricant services in Dar es Salaam and Tanga in Tanzania and inland fuel depots in Kampala of a capacity of 5000 m3. It is also the distributor Castrol in Uganda and Rwanda
Established in 1987, MOGAS boasts of more than 35 branches in Uganda alone.
Rugazoora contends that the instruction by Stanbic to Kabiito Karamagi to take over their company was unlawful and uncalled for. He further asserts that Stanbic’s demand notices, notices of foreclosure and sale of MOGAS properties is unjustified. He accuses Karamagi of trespass and illegally closing of their business. Stanbic was to negotiate with Ola Energy ltd which was willing to settle the bill.
In her ruling on the matter which was delivered on the 25th January 2022, Hon. Justice Jeanne Rwakakooko granted a temporary injunction of six months to allow MOGAS to complete its negotiation. The judge further directed Karamagi to vacate the premises and for MOGAS to resume business until the main suit.
