February 27, 2024

Karuguuza Progressive SS director jailed for defaulting loan

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KIBAALE

The director of Karuguuza Progressive-Tulihanziriga Secondary School in Kibaale District, Andrew Tibamwenda has been committed to 6 months imprisonment at Kibaale civil prison for adamantly failing to pay a loan of over 69 million shillings he obtained from a Kagadi District based money lender.

Tibamwenda who is also the former Buyanja County MP aspirant was arraigned before the Kibaale Chief Magistrate Deogratius Sejjemba together with his guarantor Richard Mukasa who was also committed to the same.

Tibamwenda and Mukasa were arrested Thursday morning by Denis Asiimwe of Majimoto Auctioneers and Court Bailiff-Hoima and detained at Kibaale Police Station before they were arraigned in court last evening.

The court heard that on June 9th 2017 in Kagadi district, Tibamwenda acquired a loan of 4 million and later on 21st July the same year acquired a top up loan of 8 million to roof his house totaling to 12 million at an interest rate of 15% from Twesa holding limited of Kagadi owned by Samuel Eria Twinomujuni a local money lender.

Consequently, Tibamwenda’s lawyer Isaac Mwebaze of MS Aequitas Advocates, promised to pay the money in 3 months and he issued a Cheque Number 005197 in the names of Karuguuza Progressive SS as a security.

Twinomujuni and his lawyer informed the Chief Magistrate that ever since Tibamwenda acquired the loan he has never paid back the money and due to the interests and other costs incurred the money accumulated to over 69 million shillings.

In dock, Tibamwenda said he failed to pay the money due to his economic decline induced by COVID-19 outbreak but pleaded to pay the money after selling off his shares in Karuguuza Progressive Secondary School.

This prompted the Chief Magistrate Sejjemba to commit both Tibamwenda and Mukasa to prison for 6 months at Kibaale prison and ordered Tibamwenda to as well pay the money within 6 months in default his property will be sold off.

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