After over 8 years of litigation, the Kampala High Court has finally declared Luwero District Chairman Ronald Ndawula bankrupt.
The ruling in effect implies that Mr Ndawula is no longer recognized as the district chairman.
High Court judge Dancun Gaswaga yesterday ruled against Ndawula, declaring him bankrupt after he failed to pay a debt totalling Shs 542 Million.
Ndawula was dragged to court in 2012 by one Mazhar Qayyum, the proprietor of Hiraa Traders Ltd who sold him cars worth Shs 223Million on credit.
In 2015, Court ruled in favour of Qayyum’s company and awarded him costs, damages and interest, bringing the total amount owed by the chairman to Shs 542.6Million.
Quyyum however, says that since then he attempted to get court bailiffs to attach Mr Ndawula’s belongings to obtain the money, but this was not possible because the latter happened not to own any viable properties.
As such, the petitioner rushed to the High Court asking for Ndawula to be declared bankrupt.
However, Ndawula sought to forestall this application, telling court that he indeed owns shares in Everest Schools Ltd, which together with his government salary would be enough to pay the amount.
He however, argued that needed to first challenge the 542.6Million case ruling, which his lawyers claimed was marred by irregularities, claiming among others that the judge who issued it had been “influenced” by Mr Qayyum.
Nevertheless, in his ruling yesterday, Justice Gaswaga accused Ndawula and his lawyers of deploying different kinds of delay tactics like filing multiple applications to waste court’s time.
He cited examples where one of the lawyers Mr Lubwama incessantly disrupted court proceedings, shouted at the judge and even stormed out of the court room, which conduct he said was unprofessional.
As such, the judge proceeded to issue a bankrupt order against Mr Ndawula.
The ruling means that Ndawula is no longer the district chairman of Luwero since the law doesn’t permit a bankrupt person to hold such an office.
According to the Bankruptcy Act, when a person is adjudged bankrupt, they are disqualified from holding any key government office.
Among such offices listed in the Act is the President, MP, Minister, Member of Local Government, Council, Board Authority or any other government body.