A controversy has erupted in Luweero District following Equity Bank’s reported move to auction Wobulenzi Public School over an outstanding loan, causing concern and fear among various stakeholders.

Reports of Equity Bank’s intentions to sell off the public primary school first surfaced in May, triggering alarm and agitation within the community.

Mr Joseph Ssebayiga, a concerned parent whose child attends the school, recounted a troubling message relayed by his son, revealing that the bank officials had marked the school’s premises for sale, causing distress among both students and staff.

The situation has drawn strong condemnation from various quarters, including Luweero District Woman MP, Ms Brenda Nabukenya, who labeled the actions taken by Equity Bank as harsh and potentially unlawful.

Resident District Commissioner Richard Bwabye acknowledged the school’s loan amounting to Shs100 million acquired in 2019 but criticized the bank’s aggressive claim over the institution, emphasizing that while the bank has a legitimate claim, it should not disrupt the school’s normal operations.

Mr Bwabye highlighted a fundamental error made by the school administration in mortgaging a government property without following due procedures, emphasizing that such actions should undergo proper scrutiny.

Investigations reveal that the loan was intended for the acquisition of a plot to construct teachers’ housing, but discrepancies arose as the loan ballooned to Shs156 million amid the closure of schools due to the pandemic.

The current head teacher, Mr Michael Kintu, expressed shock over the sudden declaration of the school as bank property, particularly as it coincided with the final preparations for the Primary Leaving Examinations.

Authorities have uncovered irregularities in loan usage, where only a portion of the borrowed amount was directed towards its intended purpose. Allegations suggest that the plot of land remained partly unsettled, leading to complications in loan repayment.

Responding to the situation, Ms Barbara Among, the Equity Bank communications manager, defended the bank’s decision to exercise its right to sell the property as a means to recover depositors’ funds.

The unfolding situation has sparked outrage and calls for thorough investigations into the loan acquisition process and subsequent utilization, highlighting the need for stringent measures to protect public institutions from such financial entanglements.