Ex-Presidential Aide Ordered to Pay Dfcu Bank Shs 165m Over Fake Husband Loan Scheme

The High Court in Kampala has delivered a major ruling against Dr Elizabeth Nabatanzi Lugudde, a former presidential aide, ordering her to pay dfcu bank Shs 165.7 million. The judgment stems from a fraudulent loan transaction dating back to 2008, where Nabatanzi obtained a Shs 20 million overdraft by presenting an impostor as her husband.

According to court records, Nabatanzi sought the financing alongside a man posing as her spouse, Samwiri Lugudde Kanyike Katwe, to fund merchandise transport to South Sudan. As collateral, she offered a land title in Lungujja registered under the real husband’s name. The venture collapsed after the transport truck was involved in an accident in Gulu, leading to default on the loan.

Dfcu bank moved to recover the funds by selling the mortgaged property. However, a legal battle ensued when the actual husband, Katwe, sued the bank, maintaining he never consented to mortgaging his land. The bank eventually settled out of court, paying damages to Katwe and the buyers of the land, which, alongside legal fees, cost the financial institution nearly Shs 71.8 million.

During proceedings, it was discovered that Nabatanzi had actually presented her brother-in-law, Moses Kamya, as her husband. While Nabatanzi argued that her husband knew about and consented to the substitution, Justice Stephen Mubiru strongly rejected the defense. The judge ruled that presenting an impostor to execute legal banking documents constituted deliberate fraudulent misrepresentation.

Consequently, Justice Mubiru ordered Nabatanzi to pay the outstanding loan balance of Shs 83.8 million, alongside the settlement and legal costs incurred by dfcu bank. The court also awarded the bank Shs 10 million in punitive damages, with the total payout exceeding Shs 165 million. Read more details about this ruling on The Observer.