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Bushenyi tycoon dragged to court over failure to pay sh12 billion loan

By Charles Etukuri

Added 28th September 2019 12:48 PM

In a suit filed at the High Court Civil registrar on Friday, Prime Finance Company claims that in 2008, Ntebekaine borrowed $200,000 (sh740 million) from them and later defaulted but that the money has since increased owing to the interest rate charged and also recovery costs.

Bushenyi tycoon dragged to court over failure to pay sh12 billion loan

In a suit filed at the High Court Civil registrar on Friday, Prime Finance Company claims that in 2008, Ntebekaine borrowed $200,000 (sh740 million) from them and later defaulted but that the money has since increased owing to the interest rate charged and also recovery costs.

KABALE - Bushenyi based businessman Obadia Ntebekaine has been dragged to the High Court by Prime Finance Company over his failure to pay $3.2million (sh11.8billion).

In a suit filed at the High Court Civil registrar on Friday, Prime Finance Company claims that in 2008, Ntebekaine borrowed $200,000 (sh740 million) from them and later defaulted but that the money has since increased owing to the interest rate charged and also recovery costs.

"On October 2, 2018, Ntebekaine entered into a loan agreement with Prime Finance Company and borrowed $200,000. The said loan agreement was for a period of two months and he issued postdated cheques dated November 27, 2008, amounting to $211,000 (sh780 million)."

Prime Finance Company noted that they agreed with Ntebekaine that in the event that he failed to repay the amount of money within the agreed time, he was to continue paying the loan amount at an interest of 0.60% per week on the outstanding balance until the liquidation of the entire amount.

On November 27, Prime Finance Company says it presented the cheque Ntebekaine had issued to their bank but it was dishonored for lack of sufficient funds. That the Prime Finance Company then made a formal demand to Sipapa informing him of his bounced cheque and required him to make good on his obligation to repay under the loan agreement.

That on January 7, 2009, Ntebekaine deposited $19,980 as part payment towards his loan obligation and further $29,800 as further payment towards the loan obligation.
 
The Finance Company notes in their suit that due to delays of payment by Ntebekaine, they were forced to hire the services of a private lawyer to demand the outstanding monies. They also claim that Ntebekaine continued servicing his loan until March 2015 when he defaulted and that in spite of the several reminders to honor his part of the deal and repay the money, he has refused to oblige.

The Finance company claims that the actions of Ntebekaine have caused them to suffer lost profits. Efforts to get a comment from the businessman prove futile.

Obadia owns Bushenyi Commercial Agencies which is one of the companies that was licensed in 2011 to import sugar in the country. The company also deals in rice and deals in shares at the stock exchange.

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