By Spy Uganda
Justice Thomas Ocaya of High Court at the Commercial Division has ordered Haruna Kalule Muwanga, the son to fallen city tycoon Ibrahim Muwanga Kibirige (BMK) to pay the Minister of State for Youth and Children Affairs , Dr Balaam Barugahara Ateenyi Shs1.4billion.
Court documents indicate that around July 2021, Muwanga approached Balaam for a financial support of Shs1.4bn and he accepted by first advancing the Shs1 billion on July 29, 2021 to Muwanga’s DFCU bank account while the Shs400m was advanced in cash on the next day and all monies where to be paid back within 6months as per the agreement something that was not done hence the suit.
Justice Ocaya ruled in favor of Balaam, stating that Muwanga’s failure to repay the loan had deprived Balaam of using his money to invest in his businesses. The judge awarded Balaam interest at a rate of 6% per annum on the outstanding amount from the date of default until the date of filing the suit. Additionally, the judge ordered Muwanga to pay general damages of Shs140 million and interest at a rate of 6% per annum.
“The demeanour exhibited by the defendant is seemingly disingenuous. I, therefore, award general damages of sh1.4b which I believe is sufficient to remedy the inconvenience,” he added.
Court revealed that Muwanga failed to meet his contractual obligations by not honouring the agreement to repay the debt within the stipulated time frame.
“In this case the plaintiff (Barugahara) would not have brought this matter to court had the defendant (Muwanga) performed his contractual obligation or adhered to the plaintiff demands to pay. As such, I award the plaintiff the costs of the suit,” Justice Ocaya said.
Muwanga argued that there were standing orders he had signed to offset the debt. However, the court noted that there was no evidence of such standing orders.
