MP Asked to Refund Shs 300m Obnoxious Commission Received

NATIONAL. In a true testament that not all judicial officials are corrupt, the High Court Judge of the Commercial Division, Hon. Lady Justice Anna B. Mugenyi has saved an Isingiro man from what she calls an ‘unconscionable’ commission arrangement with Mbarara North MP, Robert Rukaari. 

Webster dictionary defines unconscionable as ‘morally wrong and evil or unacceptable because of being too extreme.’ 

In a ruling delivered on 31st January, 2024, Hon. Lady Justice Anna B. Mugenyi ruled against a suit filed by American Procurement Company, INC (AMPROC), a company owned by Mbarara North MP, Robert Rukaari compelling a one Eugene Arigye to implement an agency agreement that gave AMPROC 60 percent of proceeds from a land compensation due to Arigye and four others.

Rukaari had allegedly convinced Arigye that he would use his political influence, (he is a CEC member representing Entrepreneurs) to see through the compensation of Shs8, 070,400,000 from the government of Uganda. The compensation was a due to the fact Arigye and 4 others lost their land comprised at Leasehold Register Volume 2830, Folio 19, Plot 21 in Isingiro, Block 28 to refugee settlement.

Through the Ministry of Lands and Urban Development, government directed the Arigye’s to be compensated something that came to the attention of the unscrupulous Rukaari who quickly approached the beneficiaries with a promise of quick payment if he was given the Agency Commission. 

An excited Arigye, (without consideration of the terms in the MOU) signed the Agency Agreement on 13th May, 2019 where it was agreed that AMPROC would be paid 60 percent of the money paid by the government and others and irrevocable powers of Attorney were also executed on the same day. 

However, when the 1st payment of Shs1, 506,000,000 came through and Rukaari pocketed a hefty Shs381, 520,000, Arigye’s lawyers swung into action and advised him to terminate the agreement.

They also went ahead and instructed the Ministry of Lands and Urban Development to stop paying money into AMPROC’s account and instead use the Account of M/S Kakuru and Company Advocates in a letter dated 11th August, 2021.

Subsequent payment of Shs2, 188,133,333 was made through M/S Kakuru and Company Advocates, prompting Rukaari to run to the Commercial Court seeking orders that Arigye pays him the commission as negotiated in the MOU, general damages and costs of the suit.

In her ruling, Justice Mugenyi said, “Although Counsel to the Plaintiff (Rukaari) contends that the parties sat in meetings and agreed to the terms and the Defendant, (Arigye) did not produce witnesses to show that he was induced, from the above decision, looking at the unreasonably unfair distribution of the money, coupled with the execution of irrevocable power of attorney in favour of the Plaintiff (Rukaari).

“I find that the MOU was unconscionable without even looking at his position as CEC member in NRM. For this reason I find that the contract was illegal,” the Judge ruled. 

She also ordered Rukaari to refund the Shs381, 520,000 he had received before the termination of the MOU.

“As regards the remedies, the Counterclaimant (Arigye) had sought for an order for refund of Shs381, 520,000, I make an order for the refund of Shs381, 520,000, which was paid to Rukaari,” ruled Justice Mugenyi.

In the latest ruling regarding the same case, dated 9th May, 2025, Justice Mugenyi orders not only for the refund of the Shs381, 520,000 but also costs of the suit.

Rukaari is no visitor to scandals regarding financial transactions. 

On 01 March, 2023, Rukaari was arrested at around 4:30 pm between Bhatia Chambers and Jubilee Insurance Centre building along parliamentary Avenue over failure to pay a debt.

Rukaari was then remanded to Luzira Prison over failure to pay a Shs700m debt, by the Commercial Division of Kampala High Court.

It is alleged that 5 years ago, Rukaari borrowed Shs992m from Gerard Kalungi, the son of Kampala tycoon Godfrey Kirumira.

On December 17, 2022, court directed Rukaari to pay the debt by December 22, 2022 or face arrest. 

He, however, paid Shs300m, leaving a balance of Shs700m. This compelled the courts to remand Rukaari to Luzira prison.

“You hereby commanded to commit the said Mwesigwa R into civil prison and keep him therein for a period not exceeding 6 months until the said decree shall be fully satisfied or the said Mwesigwa R shall be otherwise entitled to be released according to the terms of provision section 43 of CPA,” the court order signed by the registrar read in part.