Kampala Central MP Muhammad Nsereko has been sued after he allegedly took Shs 2.9 billion including vehicles from an investor with promises to deliver titled land in Banda, a Kampala suburb only to supply air later.
Nsereko has now dragged to the Commercial Division of the High court in Kampala car dealers, Aisha Trading Limited through their attorneys, Kampala Associated Advocates. According to the court documents, Aisha Trading Limited reports that the legislator purported to sell them land at Banda measuring 1.87 hectares well knowing he possessed forged documents. The MP apparently forged a letter of endorsement from the chairman Uganda Land Commission.
According to the court documents, Nsereko, the shadow cabinet minister for Defence, purported to make good of the failed deal by offering Aisha trading an alternative piece of land in Mityana district, which was later found to belong to the Uganda People's Defence Forces (UPDF).
Nsereko then purported to offer alternative land measuring about 642 acres in Mubende, which he too failed to provide vacant possession as he did also fail to deliver alternative land along the Northern bypass. The investor's efforts to get back their money from Nsereko has been futile since August 3, 2020, as the legislator has failed to heed to their plea.
Nsereko when summoned by deputy registrar, Lillian Bucyana to file a defence, the legislator in an October 6, 2020, written statement of defence, purported to deny the facts of the land sale agreements and the MOU's he signed, claiming that he was just a partner in a business that later failed.
However, in a reply to his statement of defence, the investors have provided the MOU's as well as bounced cheques that the MP had provided as a commitment to pay.
"The series of agreements entered into were Memorandums of Understanding and not joint venture agreements as alleged and the title head of the agreements confirm the same," Aisha Trading Limited says in reply to Nsrekeo's defence filed on November 4, 2020.
The investor confirms in the court records that the company entered into a series of land sale agreements with Nsereko, who had presented himself as the owner of pieces of land in Banda, Mubende and Northern bypass in Kampala and when the ownership of the land was disputed, the parties agreed to rescind the sales agreement, with Nsereko committing to refund a total sum of Shs 3.1 billion after issuing post-dated cheques.
The MP then issued eight post-dated cheques of Shs 396.8 million each, all amounting to Shs 3.1 billion. The cheques were supposed to be payable every six months. On February 8, 2020, both parties agreed that the first cheque would be banked within 45 days from the date of execution.
Aisha Trading Limited banked the cheque on March 24, 2020, and was informed by the drawee that Nsereko had cancelled it. The company banked another cheque on July 9, 2020, and the MP again cancelled the cheque, forcing the company to invoke clause 4 of the agreement, which indicated that if any of the cheques bounced and/or dishonoured, the whole amount outstanding would become due.
Aisha Trading Limited now wants court to compel Nsereko to pay back the money with interest, damages and costs of the case. The case is expected to commence soon.
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