Kampala — The trials and tribulations of the former headteacher of Budo Junior School, Mr William Kayongo, seem to spiral by the day. Barclays Bank (U) Ltd has sued Mr Kayongo over a Shs1.7 billion loan he borrowed from the bank.

The money was meant to run a secondary school that Mr Kayongo owns on Entebbe road in Kampala. The bank, in a case filed at the High Court Commercial Division yesterday, is suing Mr Kayongo jointly with the Headmaster of Mengo Senior Secondary School, Mr George William Semivule.

Mr Semivule is the former head teacher of Kings College Budo. Kampala law firm, Makks Advocates is representing the bank. According to documents in Court, the bank has been lending money to Mr Kayongo to run affairs of Berkeley Educational Enterprises situated on a 10-acre piece of land at Bunamwaya off Entebbe Road since 2003.

The bank claims Mr Kayongo and Mr Semivule opened up account No 1383935 with the bank, which they used as security to borrow money on various dates.

The two men further offered school property, including the land on which Berkeley Educational Enterprises was constructed, as security.

The men acted as guarantors of the school when borrowing the money.

Details of the case state that in 2003, the bank lent the school Shs400 million, a second loan of Shs63 million, but both loans were cleared.

In 2006, Mr Kayongo ran another company called Katembe Trading Stores in which he borrowed Shs300 million which the bank claims he failed to pay back.

He, however, later asked the bank to restructure the loan-borrowing process by lending Shs500 million to Berkeley Educational Enterprise, which the bank advanced to the latter.

The bank claims Mr Kayongo and his colleague used this money to clear the loan he borrowed in the names of Katembe Trading Stores and applied for another loan to the tune of Shs 1.5billion. The parties agreed that this loan would attract interest of Shs21 per cent per annum.

The bank has appointed Mr Festus Kateregga and Mr Vincent Kawunde, as receivers who will take-over the properties of Berkeley Educational Enterprises until the claimed loan is cleared.

The bank's corporate manager, Mr Stephen Magimbi swore an affidavit in support of the case, where he states he was well versed with the facts of the case.

He contends that the acts of Mr Kayongo and Mr Semivule have caused the bank losses for which he holds them jointly liable. The bank now wants a court order directing the duo to pay the debt with 12 per cent interest.