A drama in which a man sues his grandson for allegedly defaulting on a loan he gave him to continue his postgraduate studies abroad

Posted by on Oct 14, 2020, Under: News

A drama in which a man sues his grandson for allegedly defaulting on a loan he gave him to continue his postgraduate studies abroad

Dr. Warren Namara, a Ugandan citizen, filed a lawsuit against his grandson on charges of defaulting on a loan he had lent him to pursue his postgraduate studies in the UK and start a business later.

According to commercial documents, Dr. Namara claims that, by verbal agreement in 2004, he agreed to lend £ 9,800 (approximately 47 million shillings) to his nephew, Mr.. James Deers Mwangusya.

The concessional loan under consideration was supposed to help Mr. Mwangusya begin his Master’s and Doctorate studies at Bradford University in the UK.

Court documents also show that after the nephew finished his studies, he approached his uncle again and asked for another loan to allow him to start the business.

Dr. Namara, at the request of his grandson, provided his grandson with another loan of $ 256,066 (947 million shillings) and 160 million shillings.

However, he said, he later discovered that Mr. Mwangusha had fraudulently misrepresented the true purpose of the means to get him to fork out.

“To induce the plaintiff (Dr. Namar) to issue an additional amount of credit to the defendant (Mr. Mwangusha), the defendant stated that he was involved in asset financing, project planning or training,” he says. Dr. Namara in his petition.

“Indeed, the statement was false because the defendant did not undertake / initiate any asset financing, project or training activity at the time,” says Dr. Namara.

He says that Mr. Mwangusha said he needed £ 9,800 (47 million shillings) to continue his studies, although he was not enrolled in doctoral courses at any university.

The Claimant also claims that his grandson redirected the loan to other businesses unrelated to the agreement when the funds were disbursed.

Dr. Namara, who is represented by Kasirye, Byaruhanga & Co., said he is trying to get the money back from Mr. Mwangusha.

In his defense, Mr. Mwangusha confesses to being a close relative of Dr. Namara.

He also claims that he had a money lending business known as Cashbox, in which he says his uncle chose interest and decided to invest in it together.

“He (Dr. Namara) has agreed to invest up to 500 million shillings. The return on his investment will be 2% per month of the total investment, which he expected to receive in late 2019 – early 2020, ”Mwangusya says in his defense.

He continued, “As a precondition for his participation in this co-investment, the plaintiff (Dr. Namara) applied to become a registered partner in the Cashbox business, which the defendant and other partners have mandated.”

Mr. Mwangusya also asked the court to note that all the money intended for joint investment was duly registered and that her uncle did not object to the documented figures.

The case was brought up for a hearing on Monday 12 October, but Mr. Mwangusya was absent because he was ill. Case updated as of October 27th.