The Commercial Division of the High Court Judge Thomas Ocaya has confirmed that Haruna Kalule Muwanga, the son to fallen city tycoon Ibrahim Muwanga Kibirige (BMK) breached the Shs1.4 billion agreement he entered with Youth and Children Affairs Minister Balaam Barugahara.
According to the judgment, around July 2021, Muwanga approached Balaam for a financial support of Shs1.4 billion and he accepted because of the long relationship he had with the deceased’s father.
When they signed an agreement, Balaam first advanced Shs1 billion on July 29, 2021 to Muwanga’s bank account No. 01363044169240 in Dfcu bank.
On July 30, 2021, he added the balance totaling to the agreed amount. Muwanga was supposed to return the money given to him in the period of six months.
Balaam told the Court that Muwanga who is one of the BMK empire directors gave him cheques which bounced and later pleaded with Balaam to accept cash payments.
He started by giving him Shs400 million and on March 11, 2022 yet he was supposed to pay him Shs1billion. The remaining balance was supposed to be cleared on July 11, 2022.
When he refused to pay back, Balaam decided to file a case against Muwanga and ran into hiding which forced the petitioner to serve him through substituted service through the New Vision paper.
Even though Muwanga was served through a substituted service, he didn’t file his defense and the matter was determined without his defense.
“The plaintiff has shown that he is a businessman involved in the business of radio, marketing, event management and a series of businesses, and by the defendant not paying, he has deprived him of using his money to invest in his businesses,” the judge noted.
The judge noted that Balaam is entitled to recover his money from Muwanga and should charge an interest rate of 6% from the date of filing the case until the judgment.
Balaam was also awarded with general damages and Muwanga was ordered to meet the costs of the suit.
The judgment comes at the time when banks and other financial institutions are threatening to attach BMK properties including his multibillion matrimonial home in Naguru.
