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NRM Member of Parliament faces arrest over Shs70 million loan

Elisha Z. Bwanika by Elisha Z. Bwanika
6 years ago
in National, News
6 0
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A Member of Parliament faces arrest over failure to pay back a loan of Shs70million he borrowed almost a year ago.

Herbert Lule, who has sued Sam Lyomoki, allegedly lent the Workers MP the money in August 2018.

Lyomoki then gave Lule a promise to pay up within a month on top of a postdated cheque for September 29, 2018.
“That when the plaintiff (Mr Lule) presented the said cheque for payment in his bank, the same was dishonored with the words ‘Refer to the drawer-account dormant’,” the suit documents within the High Court Civil Division state.

“The plaintiff immediately informed the defendant (Dr Lyomoki) about the bounced cheque where upon he undertook to pay the same within one week,” a local daily states.
However Mr Lule states that Dr Lyomoki has not paid him despite the earlier commitment. He says Dr Lyomoki’s action has caused him financial distress for which the legislator is liable to pay damages.
Through his lawyers of Kiwanuka, Kanyago & Co. Advocates, Mr Lule is seeking a court order directing Dr Lyomoki to pay him the Shs70m with an interest plus costs of the suit.

It is believed that an MP takes home averagely Shs25 million monthly, is given Shs103 million to buy a car of choice at start of 5-year term, and an I-pad. They also bag sitting allowances for committees and plenary and per diem for inland and abroad travel and get medical allowances and insurance.

 


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