The Commercial Court has ruled that Haruna Muwanga, also known as Haruna Kasule Muwanga, must pay Shs1.4 billion to Youth and Children Affairs Minister Balaam Barugahara.
Muwanga, who serves as the director of BMK Uganda, borrowed the money but failed to repay it.
In addition to the principal amount, he has been ordered to pay Shs140 million in damages and interest at a rate of 6 percent per annum.
Judge’s Observations
Justice Thomas Ocaya concluded that Muwanga had failed to fulfil his contractual obligations under an agreement that required him to repay the debt within six months.
“Mr Barugahara would not have brought this matter to court had Mr Muwanga performed his contractual obligation or adhered to demands for payment thereafter,” stated Justice Ocaya.
He awarded Mr Barugahara the costs of the suit, noting that the plaintiff should receive 6 percent interest per annum on the outstanding amount from the date of default until the suit was filed.
Lawsuit Details
In the lawsuit filed in the commercial division of the High Court, Mr Barugahara accused Mr Muwanga of breach of contract and sought recovery of the Shs1.4 billion.
Background of the Case
Initial Agreement
Mr Barugahara recounted that Mr Muwanga approached him in July 2021 seeking financial assistance of Shs1.4 billion.
He agreed to lend Shs1 billion, which was transferred to Muwanga’s dfcu Bank account on July 29, and another Shs400 million in cash.
An agreement was formalized, stipulating that Muwanga would repay Shs1 billion by October 30, 2021, and Shs1.3 billion by January 30, 2022.
Assurances and Partial Repayment
To assure repayment, Mr Muwanga, who claimed to be a director at BMK, arranged standing orders through dfcu Bank in favour of Mr Barugahara and handed over several cheques to be deposited if the standing orders failed.
However, Mr Muwanga later requested that the cheques not be deposited, promising to repay in cash.
He managed to repay Shs400 million, leaving a balance of Shs1 billion.
Additional Financial Support
On January 11, 2022, Mr Muwanga requested an additional Shs400 million.
An addendum to the contract was made, requiring repayment of Shs1 billion by March 11, 2022, and Shs1.3 billion by July 11, 2022.
Despite several attempts by Mr. Barugahara to resolve the matter, Mr. Muwanga failed to repay the debt, leading to the lawsuit filed on January 18, 2024.
