NRM Party Sued Over UGX 5.4B Debt

The ruling NRM party has been dragged to the High Court, Commercial Division for alleged failure to clear an outstanding debt of 5.4 billion shillings that it borrowed from an Indian national.

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The money was reportedly used to update the party register for its 2010 primaries ahead of the general elections in 2011.

The party was sued by one of its leaders Patel Arvind who was NRM’s national treasurer for the entrepreneurs’ league.

Court documents indicate that the said debt arose in July 2010 when the NRM party through its members,  Lenina Rukikaire Mbabazi and Frank Katusiime, approached Patel for  a short term loan of Shs5.4 billion to enable them facilitate the party register computerization and clean –up exercise for the primaries that were held at Mandela National Stadium, Namboole.

Patel, a Member of Uganda National Chamber of Commerce and Industry, in his complaint says he extended the loan to his party but efforts to recover the same have been futile since 2010 which has occasioned a great loss to his businesses.

Through his lawyers of Muwema and Mugerwa Advocates, Patel now seeks to recover his money at a 26% interest from the date of filing this suit until full payment.  He also wants to be paid damages to compensate for the delay.

Court has to that effect summoned the NRM party to file in its defense within 15 days or judgment be passed in their absence if they fail to do so.

The file has been allocated to Justice David Wangutusi though a hearing date has not yet been fixed.

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