High Court in Kampala has ordered for the arrest of Kabale-based businessman Obadia Ntebekaine for failure to pay his loan worth $3.2 million (about Shs11.8b) from Prime Finance Company.
In September 2019, Ntebekaine was dragged to the High Court by Prime Finance Company over his failure to pay his loan.
In a suit, Prime Finance Company claims that in 2008, Ntebekaine borrowed $200,000 (Shs740 million) from them and later defaulted but that the money has since increased owing to the interest rate charged and recovery costs.
“On October 2, 2018, Ntebekaine entered into a loan agreement with Prime Finance Company and borrowed $200,000. The said loan agreement was for a period of two months and he issued post-dated cheques dated November 27, 2008, amounting to $211,000 (sh780 million).”
Prime Finance Company noted that they agreed with Ntebekaine that in the event that he failed to repay the amount of money within the agreed time, he was to continue paying the loan amount at an interest of 0.60% per week on the outstanding balance until the liquidation of the entire amount.
On November 27, Prime Finance Company says it presented the cheque Ntebekaine had issued to their bank but it was dishonoured for lack of sufficient funds. That the Prime Finance Company then made a formal demand informing him of his bounced cheque and required him to make good on his obligation to repay under the loan agreement.
On January 7, 2009, Ntebekaine deposited $19,980 as part payment towards his loan obligation and $29,800 as further payment towards the loan obligation.
The Finance company notes in their suit that due to delays of payment by Ntebekaine, they were forced to hire the services of a private lawyer to demand the outstanding monies. They also claim that Ntebekaine continued servicing his loan until March 2015 when he defaulted and that in spite of the several reminders to honour his part of the deal and repay the money, he has refused to oblige.