The Commercial Court has directed Haruna Muwanga, son of the late BMK, to pay Youth and Children Affairs Minister Balaam Barugahara Shs1.4 billion, which Muwanga borrowed but failed to repay.
Mr. Haruna Muwanga, also known as Haruna Kasule Muwanga and the director of BMK Uganda, has additionally been ordered to pay Mr. Barugahara Shs140 million in damages and interest at a rate of 6 percent per annum.
Justice Thomas Ocaya ruled in favor of Mr. Barugahara, stating that Mr. Muwanga failed to fulfill his contractual obligations to repay the debt within the agreed six months. “In this case, [Mr. Barugahara] would not have brought this matter to court had [Mr. Muwanga] performed [his] contractual obligation or adhered to demands for payment thereafter. As such, I award [Mr. Barugahara] the costs of the suit,” Justice Ocaya ruled, noting that the plaintiff is entitled to 6 percent interest per annum on the outstanding contractual amount from the date of default until the date of filing the suit.
The case, filed in the commercial division of the High Court, saw Mr. Barugahara suing Mr. Muwanga for breach of contract and recovery of the Shs1.4 billion. Mr. Barugahara recounted that in July 2021, Mr. Muwanga approached him for financial support of Shs1.4 billion. Mr. Barugahara agreed and advanced Shs1 billion to Muwanga’s dfcu Bank account on July 29, and Shs400 million in cash, with an agreement that the money would be returned in six months.
According to the contract, Shs1 billion was to be returned by October 30, 2021, and Shs1.3 billion by January 30, 2022. Court documents reveal that Mr. Muwanga, as a director of BMK, assured repayment by setting up standing orders through dfcu Bank in favor of Mr. Barugahara and providing cheques to be deposited only if the standing orders bounced.
Despite promising to pay in cash and returning Shs400 million, Mr. Muwanga left a balance of Shs1 billion unpaid. On January 11, 2022, Mr. Muwanga requested an additional Shs400 million, resulting in an addendum to the contract. It was agreed that Shs1 billion would be returned by March 11, 2022, and Shs1.3 billion by July 11, 2022. However, Mr. Muwanga failed to pay the money even after several attempts by Mr. Barugahara to meet with him, leading to the case being filed on January 18, 2024.
