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Uganda

UGANDA COURT ORDERS HOTEL AFRICANA OWNERS TO PAY SHS 1.4BILLION TO DR BALAAM BARUGAHARE DESPITE FINANCIAL WOWS

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By Our Writer

Justice Thomas Ocaya of High Court 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 over court battle.

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.

“The plaintiff (Balaam)has shown that he is a businessman involved in the business of radio, marketing, event management and a series of businesses, and by the defendant not paying, he has deprived him of using his money to invest in his businesses,” the judge ruled.

Justice Ocaya explained that had Muwanga paid the money he had borrowed from Balaam, the case would not have reached court and as such Balaam had proved to his satisfaction that he suffered loss and inconvenience and as such needs to be awarded.

”Considering all the facts of this case, I find that an award of interest at a rate of 6% per annum on the contractual amount outstanding from the date of default until the date of filing this suit. Additionally, I award interest at a rate of 6% per annum on the contractual amount outstanding (together with pre-judgment interest above) and the quantum of general damages and costs from the date of judgment until the date of payment in full,” Justice Ocaya ruled.

The judge also ordered Muwanga to pay the minister general damages of Shs140million and interest at a rate of 6% per annum.

This court’s judgment came at the time when banks and other financial institutions are threatening to attach BMK properties including his multibillion matrimonial home in Naguru a Kampala suburb.

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