Court summons ex-minister Nabeta over sh209m debt

By Andante Okanya  

The Commercial Court in Kampala has summoned ex-trade state minister and former Jinja East MP Nathan Igeme Nabeta, over a sh209m debt purportedly owed to Housing Finance Bank.

Nabeta (NRM) was summoned in relation to a suit filed on February 12 this year by the bank, through A.F Mpanga Advocates. He purportedly defaulted on payment after losing his seat to FDC’s Paul Mwiru in a by-election held in February this year.

In the summons dated June 14, 2012, the court’s registrar Margaret Tibulya, has ordered Nabeta to file his defence within 15 days from the date he receives the summons. Court has cautioned that in the event that he fails to heed, judgment will be passed in his absence.

The plaint, states that on May 25 last year, he obtained the money through the swift loan scheme operated by the bank, with legislators as beneficiaries. The loan was given upon an undertaking by the office of the Clerk to Parliament to enable the MP access the loan facility. He was supposed to make monthly repayments of sh6.5m for 48 months.

The bank contends that on February 14 this year, last year, shortly after Nabeta lost the by-election, it received a letter from the clerk's office, with notification that Parliament was no longer obliged to remit any payments.

"The defendant's loss of a Parliamentary seat was construed as an event of default. The plaintiff shall aver and contend that the defendant's refusal to pay, occasioned and continues to occasion financial loss to the plaintiff," the bank contends.

The bank asserts that it notified Nabeta to meet his obligation but he declined, compelling it to sue. It is seeking a 16% annual interest on the sh209m, plus general damages, as well as costs of the suit.

The case file has been allocated to Justice Christopher Madrama. However, a hearing date is yet to be fixed.