Central region MP sued over sh80m debt

Jan 29, 2017

The Central Region Member of Parliament (MP) Sarah Babirye Kityo has been dragged to the Commercial court over sh80m debt, owed to one David Mutyaba.

Mutyaba dragged the legislator to court through Ssemwanga, Muwazi & Co. Advocates on Wednesday.

According to court documents, on September 7, 2015 Babirye entered into a memorandum of understanding with Mutyaba to pay sh250m being an amount owed to her.

Court documents further indicate that the legislator paid the debt to a tune of sh170m, leaving an outstanding balance of sh80m.

The payment was made following a standing order Babirye gave to the clerk of parliament, Jane Kibirige. According to Mutyaba since then, no other payment has been made.

Mutyaba asserts that when Babirye defaulted payment, he issued a demand notice for full payment of the said amount, which was also acknowledged by Babirye's advocate.

"Despite several demands and reminders, Babirye has refused or failed to pay my debt. Therefore she has no defense to the suit I filed in court," Mutyaba contends.

Mutyaba therefore seeks a court order to compel the legislator to pay him sh80m with interest at the commercial rate from the date of accrual till payment in full.

He also wants to award him general damages and costs of the suit.Meanwhile, the court registrar Thaddeus Opesen has summoned Babirye to file her defence within 10 days, warning that should she fail, Mutyaba will be entitled to obtain a decree for the amount or the right claimed in the plaint together with costs of the suit.

"You are hereby required within 10 days from the service hereof to apply for leave from the court to appear and defend this suit, "he ordered. The case has not yet been fixed for hearing.

When Babirye was contacted by New Vision on phone, she denied borrowing money from Mutyaba. Babirye also revealed that she had not been served with court summons.

"If he (Mutyaba) has evidence let him bring it and I am also happy that he has gone to court, "she said

(adsbygoogle = window.adsbygoogle || []).push({});