UGANDA, Kampala | Real Muloodi News | The High Court of Uganda, commercial division released businessman Elvis Sekyanzi, proprietor of Liquid Silk Bugolobi Limited, after he spent a week in Luzira prison.
Sekyanzi was taken behind bars after he failed to pay an accumulated debt of USh860 million, which he owed Mash Investment Limited.
He was set free on Thursday, 7, 2022, after his father, Gordon Wavamunno, the owner of Spear Motors, paid part of the money agreed on in a consent that was submitted before the Deputy Registrar, Juliet Harty Hatanga.
The consent discloses that Wavamunno and Mash Investment agreed that the debt is reduced to USh400 million from USh860 million in the final settlement of the debt, including costs.
Tycoon Wavamunno, Sekaynzi’s father, therefore, paid USh250 million and promised to pay the balance, which is USh150 million in three months period on behalf of his son.
The parties also agreed that the failure by Sekyanzi to clear the remaining balance would lead to his re-arrest. The court bailiff, Sarah Kyomugisha, was also paid USh12 million for her services.
“Upon default of payment of the USh150 million balance within the agreed three months, the entire sum in the warrant of arrest in execution dated June 1, 2022, become due and owing,” the Registrar cautioned.
Initially, when a bail application was made for him to be released, it was turned down as the court asked him to at least pay a quarter of the debt.
“It was very difficult to arrest Sekyanzi. I got the warrant on June 1 and effected the arrest towards the end of the month. That is why he should pay my costs before he is released,” Sarah Kyomugisha, the court bailiff, initially insisted.
Isaac Mulindwa and Mash Investment had agreed with Sekyanzi to establish and operate an entity known as Liquid Silk Bugolobi Limited at Village Mall, Bugolobi, Kampala.
Mash paid USh487 million as its 20% shares part contribution, but Sekyanzi breached the contract and failed to pay his part.
Mash Investment contends that despite making the payment, Sekyanzi refused to give them the money they had agreed upon, or copies of the incorporation documents.
While in court, Mash Investment was represented by Francis Machete, the former Uganda Bureau of Statistics (UBOS) Deputy Executive Director while Sekyanzi was represented by counsel Mercy Odu from AF Mpanga and Advocates.
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