MP Nsereko dragged to court over sh2.9bn Fraud land deal

KAMPALA – Kampala Central Member of Parliament Muhammad Nsereko has been taken to court after he took Shs. 2.9 billion including vehicles from an investor and promised to deliver titled land in Banda, a Kampala suburb but later supplied air.

Car dealer Aisha Trading Company Ltd. alleges that the legislator sold them 1.8 hectares at Banda, a Kampala suburb, knowing full well that it had a forged certificate of title.

Mr Nsereko has now been taken to the Commercial Division of the High Court in Kampala and indicted by the investors.

The company claims when the anomaly was detected, Nsereko offered an alternative piece of land in Mityana district, which belongs to the Uganda People’s Defence Forces (UPDF).

Subsequently, the entity demanded a refund, saying Nsereko had not honoured their request since August 3. Court records indicate 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 along the Northern Bypass in Kampala.

The company contends that it gave Nsereko sh2.9b in cash and motor vehicles for the pieces of land. However, the ownership of the land was disputed and the parties agreed to rescind the sales agreement.

According to court documents, the parties entered into a memorandum of understanding (MOU) dated July 9, 2019 in which Nsereko agreed to refund the money.

Following the agreement, Nsereko issued eight post-dated cheques for sh396.8m each, all amounting to sh3.2b. The cheques were supposed to be payable every six months.

On February 8 this year, the parties agreed that the first cheque would be banked within 45 days from the date of execution. On March 24, the company banked the cheque and was informed by the drawee that Nsereko had cancelled it.

On July 9, the company banked another cheque and the payment was similarly countermanded by Nsereko.

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“Under clause four of the addendum, it was agreed that if any of the cheques bounced and/or was dishonoured, the whole amount outstanding would become due,” the court document reads. “The defendant has refused to pay the money despite repeated reminders,” the company contends.

The company claims that it has suffered inconvenience and financial loss, for which Nsereko is liable. The company says it issued a demand notice to Nsereko, which he ignored.


In his defence, Nsereko states that he did not enter into any land sale agreement with the company, but rather a series of joint ventures with the intention of taking part in a joint investment with regard to land in Banda.

“The plaintiff lost interest in the aforesaid joint venture and opted to pull out and entered into a settlement with the defendant,” part of his defence reads.

Nsereko contends that the company’s purported contribution towards the joint venture in the form of motor vehicles was never honoured owing to the company’s failure to transfer ownership of the same into his name.

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“The land, which is the subject of the suit, formed part of the settlement in the company’s favour in which it now claims that it is no longer interested,” he contends.

Nsereko purports that the settlement agreement on which the plaintiff based his claim was breached. According to reliable court sources, an out-of-court settlement failed.

This implies that the parties will do battle over the matter in court.

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