Former PM facing bankruptcy
Sep 26, 2003
SENIOR Presidential Advisor Kintu Musoke is on the verge of being declared bankrupt for failure to pay a sh115m debt he owes TransAfrica Bank
By Jude Etyang
SENIOR Presidential Advisor Kintu Musoke is on the verge of being declared bankrupt for failure to pay a sh115m debt he owes TransAfrica Bank.
The commercial court on Thursday issued a bankruptcy notice to Kintu Musoke, a former prime minister, over the debt.
The court registrar, J.B. Ssegirinya, issued the notice warning that Kintu Musoke risked facing bankruptcy proceedings if he did not pay or raise a challenge against the debt in court within seven days.
Ssegirinya said that the sh115,307,732 debt was the balance on the decretal sum and interest of a high court judgement which TransAfrica bank obtained against Kintu Musoke in 2000.
Ssegirinya said the money was supposed to be paid to TransAfrica lawyers Muwena, Mugerwa and Company advocates.
The debt arises from a sh40m loan Kintu Musoke reportedly borrowed from TransAfrica bank in 1997 and was supposed to be paid with an interest of 26% per annum.
However, Kintu Musoke failed to pay the loan and the bank filed a suit in the high court to recover the money with interest.
Justice Okumu Wengi, who heard the suit ordered Musoke to pay TransAfrica bank sh76m being the principal and accumulated interest of the loan.
Kintu Musoke reportedly paid part of the sh76m, which left an outstanding debt that accumulated to 115m due to interest.
SENIOR Presidential Advisor Kintu Musoke is on the verge of being declared bankrupt for failure to pay a sh115m debt he owes TransAfrica Bank.
The commercial court on Thursday issued a bankruptcy notice to Kintu Musoke, a former prime minister, over the debt.
The court registrar, J.B. Ssegirinya, issued the notice warning that Kintu Musoke risked facing bankruptcy proceedings if he did not pay or raise a challenge against the debt in court within seven days.
Ssegirinya said that the sh115,307,732 debt was the balance on the decretal sum and interest of a high court judgement which TransAfrica bank obtained against Kintu Musoke in 2000.
Ssegirinya said the money was supposed to be paid to TransAfrica lawyers Muwena, Mugerwa and Company advocates.
The debt arises from a sh40m loan Kintu Musoke reportedly borrowed from TransAfrica bank in 1997 and was supposed to be paid with an interest of 26% per annum.
However, Kintu Musoke failed to pay the loan and the bank filed a suit in the high court to recover the money with interest.
Justice Okumu Wengi, who heard the suit ordered Musoke to pay TransAfrica bank sh76m being the principal and accumulated interest of the loan.
Kintu Musoke reportedly paid part of the sh76m, which left an outstanding debt that accumulated to 115m due to interest.