Prime
MP Nsereko sued over Shs600m
MP Muhammad Nsereko
Kampala.
A businessman has sued Kampala Central MP Muhammad Nsereko over alleged failure to pay back a loan of Shs660 million.
Mr Hatwib Katoto, who is also MP for Katerera County, lodged the suit in the Commercial Court on Friday.
Mr Katoto also wants court to order MP Nsereko to pay him general damages for alleged breach of contract.
MP Katoto alleges that on August 7, 2013 Mr Nsereko borrowed Shs310 million to be paid back in 60 days, but he later defaulted.
He alleges that instead, in February 2014 Mr Nsereko again borrowed Shs349 million from him, raising the total loan sum to Shs660m, which he has also not repaid.
“MP Nsereko pledged several Equity Bank cheques which were rejected on grounds that the account on which they were drawn was closed. He also issued two land titles in the names of Swaib Ssentongo and Jamada Musisi as guarantee to receive this loan,” Katoto’s plaint reads in part.
“His action of failure to pay back has denied Mr Katoto a chance to invest his money and pay bank loans,” Katoto’s lawyers state in the suit.
Court has ordered Nsereko to file his defence within 15 days of service of the suit.
