The building is owned jointly by the National Insurance Corporation (NIC), Public Service Pensions Fund (PSPF) and National Social Security Fund (NSSF).

Yono Auction Mart Managing Director, Scholastica Kevela said the eviction was an execution of the High Court ruling that ordered Blue Pearl Hotel to pay the whole debt and 21 per cent of the accumulated debt since when it stopped paying.

“We have evicted the tenant fulfilling the ruling of the High Court and the tenant pays all the debt plus 21 per cent of the accumulated debt since when he stopped paying,” she said.

She said when the tenant fails to pay the debt other court procedures will follow to make sure of compliance to the court order. The modality for which the debt will be serviced remains between Blue Pearl Hotel and Ubungo Plaza.

She said before closing the hotel, the company officials participated in a peaceful removal of all hotel guests, handing over everything to Ubungo Plaza as Real Estate Manager.

Ubungo Plaza Limited Chief Executive Officer Mr Haruna Mgude said Ubungo Plaza Limited as real estate manager is owned jointly by NIC, PSPF and NSSF. He said Blue Pearl was the largest tenant after renting three floors at the building in 2006 under a 15-year contract.

He said in 2014 the tenant was evicted for failure to pay rent but returned after two months on court order, on condition of servicing the debt on instalment basis. But since then the tenant dishonoured the court order and failed to service the debt.