Court orders Bushenyi tycoon Ntebekaine to pay Prime Finance $304,595

Prime Finance Company was also awarded damages of sh12m and Ntebekaine ordered to pay costs of the plaintiff by Justice Ssekaana Musa.

"The plaintiff is entitled to recovery of US$304,595 with interers of 8% from the date of judgement computation that is June 4, 2020," the judge said in his order.

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 dishonoured for lack of sufficient funds. That the Prime Finance Company then made a formal demand to the businessman 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 noted 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 said that Ntebekaine continued servicing his loan until March 2015 when he defaulted and that in spite of the several reminders to honour his part of the deal and repay the money, he refused to oblige.

The finance company said that the actions of Ntebekaine 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 in shares on the stock exchange.