The Ugandan man, Dr. Warren Namara (pictured with his lawyers) said in documents before the Commercial Division that he had an oral agreement with his nephew, James Diers Mwangusya in 2004 to lend him £9,800 to undertake further education at the University of Bradford in the UK.
After completing his studies abroad, James Diers Mwangusya again approached his uncle and requested another loan to enable him to start a business and the old man gave his nephew another loan of $256,066 (Shs947m) and Shs160m, reports say.
Dr. Namara decided to head to the law court after discovering that Mr. Mwangusya had not been truthful in his dealings with him.
“In order to induce the plaintiff (Dr. Namara), to disburse further loan sums to the defendant (Mr. Mwangusya), the defendant represented that he was carrying out an asset financing, project planning or training business,” Dr. Namara states in his petition.
“In fact, the representation was false because the defendant was not at the time undertaking/ kick-starting any asset financing, project or training business,” Dr. Namara further states.
What got him even more disappointed was the discovery that Mwangusya who claimed he needed £9,800 (Shs47m) to undertake further studies had not enrolled for a course in any university for a Ph.D. programme at all.
He added that his nephew diverted the loan money to other businesses unrelated to the agreement they both arrived at before he granted him the loan.
Dr. Namara has employed the services of Kasirye, Byaruhanga & Co. Advocates, to recover the money from Mr. Mwangusya through the law court.
The defendant, Mwangusya claims to have operated a money lending business known as Cashbox and according to him, his uncle expressed interest in the business and decided to jointly invest in it.
“He (Dr. Namara) agreed to invest up to a tune of Shs500m. The return on his investment would be 2 percent per month of the total sum invested which was projected he would receive at the end of 2019 and the start of 2020.
“As a precondition for his participation in this joint investment, the plaintiff (Dr. Namara) demanded he becomes a registered partner in the Cashbox business to which the defendant and other partners obliged,” Mwangusya said in his defence.
Mr. Mwangusya added that all the money meant for the joint investment was duly recorded and that Dr. Namara did not raise any issues with the figures documented.
On Monday, October 12 when the matter was called for hearing Mr. Mwangusya’s lawyer was absent.
The case was adjourned to October 27, reports say.