Road constructor sued over unpaid Shs200m loan, goes into hiding

A sub constructor who allegedly secured a Shs200m loan to upgrade the Masaka-Bukakata Road, has been sued before the Commercial Division of the High Court for failing to honor to service the said loan.
In its lawsuit, Chanty Links Ltd avers that Mr Peter Asiimwe, who also happens to be a son Bishop George Bagamuhunda of Kigezi Diocese, on July 2, 2020, approached its directors, claiming to have won a tender for the construction of Masaka-Bukakata Road.
“The defendant (Mr Asiimwe) then presented to the plaintiff’s directors (directors of Chanty Links) that he needed a friendly loan to the tune of Shs200m to fund the project, to be refunded as soon as he is paid by the contractor.” reads in part the court documents dated October 15, 2021.

Adding: “On September 29, 2020, the defendant “(Mr Asiimwe) acknowledged receipt of the said money and undertook to refund the money within 90 days.
The 40.6 km Masaka-Bukakata Road upgrade was intended to provide the primary means of mainland travel in the Kalangala District.
The construction works included; upgrading of deteriorated road to enable year-round travel; installation of culverts and road safety works; and consultancy services.
Court documents further indicate that when the director of Chanty Links banked the cheques given to them by the sub-contractor, to recover their money, the same were dishonored to due insufficient money on his bank account.

“The plaintiff instituted criminal proceedings against the defendant who after knowing of the pending charges, went into hiding. The defendant was notified of the dishonor but to date, he remains adamant and has out rightly refused to pay,” the petitioners aver.
Through the lawyers of Mwesigwa Rukutana & Co. Advocates, Chanty Links directors are seeking court’s orders, directing Mr Asiimwe to pay them the said Shs200m and also the costs of the lawsuit.

Asiimwe disappears
Having learnt of the lawsuit and police case against him, Mr Asiimwe is reported to have gone into hiding prompting one of the directors of Chanty Links Ltd to try mediation through the family.
The family has reportedly offered to help in recovering the funds.
Meanwhile, a commercial bank has given Chanty Links a one month ultimatum to service a loan it took in order to advance the said money to Asiimwe, failure of which the collateral will be disposed of. 
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