The Kalungu woman MP, Florence Kintu who was recently dragged to court for defaulting payment of sh40m debt has admitted to borrowing sh25m and asked court’s indulgence on the interest rate.
MP Florence Kintu
Through her lawyer, Silas Mugabi, the MP told Nakawa Chief Magistrates Court that she borrowed sh25m but failed to repay because she had financial problems, and yet the interest rate was inflated by the complainant, Raj Jain.
“The claim by the plaintiff on the charge sheet was inflated. It is not what was agreed on between the defendant (Kintu) and the plaintiff,” said Mugabi.
“My client therefore seeks court’s indulgence to help in the negotiation of the interest rate,” he added.
However, in his submission, counsel for the plaintiff, Magellan Kazibwe insists that Kintu signed a written agreement, meaning that she was well aware of the consequences of the transaction if she defaulted.
“Your worship, the claim of sh36, 690,000 is inclusive of the interest rate as of 29 October 2011. However, the money accumulated to sh40m in interest when the defendant failed to pay the agreed amount,” said Mugabi.
The honorable MP who was Monday expected to appear before the Nakawa chief magistrate’s court to give her evidence failed to appear because she was reportedly sick.
Her lawyer after admitting the debt during his submission also said they (defense) do not intend to give their evidence in court.
Consequently, at the request of the complainant’s lawyer, the presiding chief magistrate, Sylvia Nabaggala ordered the complainant to file written submissions to the defendant by June 24 and the defense to reply within one week.
Nabagala adjourned the matter to 11th July for judgment on the interest rate.
According to the plaint, Jain is seeking payment of sh40m, inclusive of costs and damages.
He also contends that by refusing to repay the loan in the agreed period, the defendant breached the loan contract for which the plaintiff has suffered business setbacks.
He further claims that the interest rate of 10 percent which was per month was mutually agreed upon, hence lawful, conscionable and not harsh.
The plaintiff further contends that the transaction was of commercial nature and breach thereof and failure or refusal to repay the loan in the agreed period or thereafter entitles the plaintiff to further interest at the agreed rate of 10percent per month or alternative at the commercial rate of 40percent per annum.
The plaintiff therefore wants judgment against the defendant for payment of the outstanding loan debt as of October 29, 2011 of sh36,690,000, general damages for breach of contract and costs of the suit.
By JOB BWIRE, The New Vision