Former Bukoto South MP summoned over sh59m loan

Jul 28, 2016

According to the summons issued on Tuesday by the deputy registrar, Thaddeus Opesen, he is required to respond within 15 days, failure of which, the court will listen to the case and give judgment in his absence.

Mathias Nsubuga, the former Member of Parliament for Bukoto South has been summoned by the commercial court for failing to repay a loan of sh59.4m, borrowed from the parliamentary Savings and Credit Co-operative Society (SACCO).

According to the summons issued on Tuesday by the deputy registrar, Thaddeus Opesen, he is required to respond within 15 days, failure of which, the court will listen to the case and give judgment in his absence.

This comes after the parliamentary SACCO filed a suit on July 26, this year seeking to recover the money. It is alleged that Nsubuga borrowed sh50m on July 26, 2012 and then borrowed another sh10m on March 21, 2013, after entering into a loan agreement with the SACCO.

Through Kaddu & partners Advocates, the parliamentary SACCO stated that under the agreement of July 26, 2012, Nsubuga was to repay the money within one month from the date of disbursement, while the agreement of March 21, 2013, he was to repay it within three months.

In a supporting statement sworn by Methods Mureebe, the manager of the SACCO, the first loan agreement was to accrue interest of 24% per annum at a rate of 2% per month. Nsubuga also allegedly undertook to pay a penalty of 10% per month on the principal and interest arising from his failure to pay on time as agreed.

He said that under the second loan agreement, Nsubuga agreed to pay an interest rate of 18% per annum at a rate of 1.5% per month and that in case of failure to pay within the agreed time, he was to pay a penalty of 10% on the principal.

The SACCO contends that on April 22 and June 22, 2013, Nsubuga issued it with two cheques of sh3.8m and sh3.7m, which bounced when presented for payment.

Since then, the SACCO said that he has failed to fulfill his payment obligations as per the loan agreement, despite several reminders.
The SACCO now wants court to compel him to pay the money at an interest rate of 24% per annum.

Nsubuga lost the Bukoto South seat to Mbabali Muyanja in the recently concluded parliamentary elections. Calls to his known phone numbers went unanswered.

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