Teso Rural Development Trust (Terudet), a microfinance institution owned by Teso districts, is up for grabs after the Commercial Division of the High Court in Kampala issued a warrant of attachment and sale of its immovable property.

Terudet had been dragged to court for non-payment of Shs50 million it borrowed from Stromme Microfinance East Africa Ltd.

"This serves to direct the responsible police officer of the Ugandan Police Force to ensure that the execution (of attachment) is done in a proper, peaceful and orderly manner," a court order dated November 3 and addressed to the bailiff of court read in part.

Land and house

A piece of land comprising a residential house owned by former deputy governor Bank of Uganda Robert Elangot and located on Plot No. 17 in cell "A" Senior Quarters in Soroti Municipality has particularly been attached to recover the money Terudet owes Stromme Microfinance East Africa Ltd.

Mr Elangot had been the Terudet board chairperson at the time the microfinance institution sought for the financial support from Stromme Microfinance East Africa Ltd.

In a bid to recapitalise the microfinance enterprise, Terudet management then sought for the financial boost from Stromme Microfinance East Africa Ltd to enable it recover from the crunch which efforts have bore no fruit.

Initiated a decade ago with funding from the Netherlands government to provide affordable credit facilities to rural communities in Teso sub region, the financial institution had been grappling with huge debts and bad loans.