The High Court in Kampala has ruled that Dr Elizabeth Nabatanzi Lugudde, a former presidential aide, must pay dfcu bank a total of Shs 165.7 million. The court's decision was made after finding that Nabatanzi had fraudulently obtained a Shs 20 million loan by presenting a man posing as her husband, Samwiri Lugudde Kanyike Katwe, to secure the loan in 2008.
According to court documents, Nabatanzi and the purported husband obtained the overdraft to finance the transportation of merchandise to South Sudan. As security for the facility, she presented a certificate of title for land in Lungujja registered in the name of Samwiri Lugudde Kanyike Katwe. However, Nabatanzi failed to repay the loan after a truck transporting the merchandise to South Sudan was involved in an accident in Gulu.
The bank subsequently moved to recover its money by selling the mortgaged property. The land was eventually sold to Peter Ivor Page and Beatrice Loiza Nakaye Page for Shs 26 million. It was during the subsequent dispute that the bank discovered that the man Nabatanzi had presented as her husband was actually her brother-in-law, Moses Kamya.
Samwiri Lugudde Kanyike Katwe subsequently sued dfcu Bank, disputing that he had consented to mortgaging his land. Before the matter could be determined, the bank opted for an out-of-court settlement, paying Lugudde Kanyike Shs 11.5 million in general damages. The bank also reached a settlement with the Pages, agreeing to pay them Shs 50 million in damages.
The settlements, together with the bank's legal expenses, amounted to approximately Shs 71.8 million. In its subsequent suit against Nabatanzi, dfcu bank sought to recover the settlement costs and the outstanding loan, which had accumulated to approximately Shs 83 million. Justice Stephen Mubiru rejected Nabatanzi's argument that she had acted with her husband's knowledge and consent.
Justice Mubiru held that Nabatanzi's actions constituted fraudulent misrepresentation, noting that she had deliberately presented an impostor to execute legal banking documents. The judge ordered Nabatanzi to pay the bank the outstanding loan balance of Shs 83.8 million, which will attract interest at 25 per cent from 2021.
In addition to the loan balance, the judge ordered Nabatanzi to reimburse dfcu bank the approximately Shs 71 million it incurred in legal expenses and settlements arising from the disputed mortgage transaction. The judge also awarded the bank Shs 10 million in punitive damages and ordered Nabatanzi to pay the costs of the suit.
Key points
- Dr Elizabeth Nabatanzi Lugudde was found to have fraudulently obtained a Shs 20 million loan using an impostor as her husband.
- The High Court ordered Nabatanzi to pay dfcu bank a total of Shs 165.7 million, including the outstanding loan balance, legal expenses, and settlements.
- The court's decision was made after finding that Nabatanzi had deliberately presented an impostor to execute legal banking documents, constituting fraudulent misrepresentation.
