The High Court’s Commercial Division in Uganda ruled in favor of Minister Balaam Barugahara, ordering Haruna Kalule Muwanga, son of late businessman BMK (Ibrahim Muwanga Kibirige), to pay Shs1.4 billion for breaching a loan agreement. Latest news confirm that Minister Balaam Barugahara has got clearance to sell off the property.
Here is a breakdown of the case:
- Loan Agreement: In July 2021, Muwanga had approached Minister Barugahara for Shs1.4 billion, which was advanced in two installments: Shs1 billion to Muwanga’s DFCU bank account on July 29, 2021, and Shs400 million in cash the following day.
- Payment Terms: The loan was supposed to be repaid within six months, but Muwanga failed to meet the deadline. He paid Shs400 million on March 11, 2022, leaving a balance of Shs1 billion.
- Court Ruling: Justice Thomas Ocaya had ruled that Muwanga’s failure to repay the loan had deprived Barugahara of investing in his businesses. The court had awarded Barugahara:
- Shs1.4 billion: The outstanding loan amount
- Shs140 million: General damages
- 6% interest per annum: On the outstanding amount from the date of default until the date of filing the suit, and on the contractual amount outstanding, general damages, and costs from the date of judgment until full payment
- Costs of the suit: Muwanga was ordered to meet the costs of the suit
The judgment came amid threats from banks and financial institutions to attach BMK properties, including his multibillion matrimonial home in Naguru.
