Parliament, MP’s widow clash over Shs120m debt

Mathias Nsubuga, the former Bukoto South MP

Parliament- The case in which the Parliamentary Sacco is seeking to recover Shs120m from the family of deceased former Bukoto South MP Mathias Nsubuga has taken a new twist and the savings society is now pursuing the widow, Ms Jennifer Nsubuga, to pay the money.

In a sworn affidavit, the Sacco, through Pamela Nalunkuma & Co. Advocates, contends that Ms Nsubuga “is both wife and administrator of the estate and she has a duty to pay the outstanding debts of the deceased.”

However, in their defence, the family argue that “the suit is incomplete, premature and fatally defective” as the loan to the late Nsubuga was secured with his entitlements as a Member of Parliament, which included a car grant of Shs103m, which should have been claimed by the Sacco.

However, on July 8, Ms Jane Kibirige, the Clerk to Parliament, distanced herself and the Parliamentary Commission from the debt, saying the deceased had a personal responsibility to meet his obligation since all the payments were made to his account when he was still alive.

Ms Kibirige admitted she had seen Nsubuga’s loan guarantees but said it was after payments had been made to his personal account.

She was responding to queries raised by the Sacco’s lawyer regarding the matter.
The lawyers asked why the money was not directly remitted to the Sacco account and demanded to know where it was deposited.

This made it impossible for the Sacco to recover its money and the four-year old mediation process remains fruitless.
Counsels on both sides declined to comment, saying the matter is before court.

Daily Monitor accessed information that the late Nsubuga was given the money as an advance payment in 2012. He secured his loan with a motor vehicle grant worth Shs103m and his parliamentary emoluments, which the Clerk had agreed to remit to the Sacco.

The matter refers to two loans obtained from the Sacco. The first was Shs50m picked on July 26, 2012 at an annual interest of 24 per cent and the second was Shs10m on March 21, 2013 at an annual interest rate of 18 per cent. As of February 4, 2020, the total debt was Shs108.5m. When subjected to the 10 per cent penalty, it would rise to Shs119.5m.

Legal opinion

Mr David Mukiibi, a lawyer with MAAKS Advocates, told Daily Monitor that the case can be pursued on the basis of the administrator of the deceased’s estate.
“Can you sue a dead man? The answer is yes, through the administrator. The legal position is that you sue the administrator not in their individual capacity but in the capacity of an office bearer for the deceased,” Mr Mukiibi said.